Appetite for real estate from family offices over the past year has been more than any other investor type"

In a recent Preqin Investor Outlook Report (Real Estate H1 2016) it stated that private wealth is an increasingly important source of capital to the real estate asset class, with wealth managers and family offices currently making up 17% of the real estate investor universe. The majority (51%) of private wealth firms are wealth managers, while multi-family and single-family offices constitute 25% and 24% respectively (Fig. 4.10).

As global numbers of high-net-worth individuals increase year on year, the importance of private wealth as a source of capital for the real estate industry is set to grow. Fifty-eight percent of fund managers surveyed by Preqin stated they had seen more appetite for real estate from family offices over the past year, more than any other investor type.

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Harvard's Endowment commits to a target investment range into real estate between 10% to 17% for 2016

Years ago, before the downturn I was paying very close attention to the investing allocation of my Alma Maters Endowments Investing Strategy HMC (Harvard Management Company), especially in the area of real estate. I believe that not only was Harvard a great place to understand the importance of investment allocation strategies before the downturn but even more so since the downturn. In fact, investors who are looking to enhance the performance of their investment portfolios probably won’t find a better investment model than the one used by the $37.6 billion endowment for Harvard University. The entity in charge of managing the endowment, Harvard Management Company (HMC), has accrued an impressive investment track record across its 41-year history. As of fiscal year 2015, the endowment had produced an average annual return of 12.2% – 290 basis points higher than the average 9.3% return of a typical U.S. 60/40 stock and bond portfolio. The methodology behind HMC’s success i...

Real Estate Analysis

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Real Estate - The Bedrock Asset for Family Offices

Global Family Office Report 2015: Largest Family Office Research Study undertaken offers insight into family office investments in real estate The average family office portfolio allocates approximately 13% to real estate, and there is a home bias in holdings according to The Global Family Office Report 2015, produced by Campden Wealth Research, in partnership with UBS. The average family office, with assets under management of USD 806 million, invested approximately USD 105 million in real estate activity in 2014, be it in residential or commercial real estate. Family offices prefer to invest locally or nationally for both commercial and residential property. Since real estate direct investment typically takes place in-house, this may be a reflection of the local knowledge and skill set of the staff. Where investments are made further afield, they are made with the expectations of higher returns, with international or regional investments coming with signi...

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