Exploring the Changing Landscape of Family Office Investing: Insights from the KKR 2023 Family Capital Survey

Family office CIOs are gearing up for a shift in investment strategy in 2024, according to the latest findings from the KKR Family Capital survey. The survey, conducted in December of 2023, revealed that these CIOs are looking to increase their exposure to private market investments, such as private credit, infrastructure, and private equity.

After a year of extensive travel and conversations with CIOs from leading family offices around the world, it became clear that these individuals are focused on leveraging their longer-term perspective and owner/operator mentality to create a sustainable competitive advantage in investing. This approach sets them apart from more traditional passive investors who may be constrained by the need for higher near-term payouts.

In light of this, the survey results indicate that family office CIOs are planning to increase their allocations to illiquid assets in 2024, at the expense of cash and public equities. This shift reflects their confidence in the illiquidity premium offered by alternative asset classes.

As the world of investing continues to evolve, family office CIOs are positioning themselves to capitalize on opportunities in the private markets. By increasing their exposure to illiquid assets, they are setting the stage for continued success in the years to come.