The New Family Office Playbook: Financing Direct Investments
Bloomberg Invest New York | March 3, 3026
Roundtable Recap Report
Proudly Sponsored By Deutsche Bank
Family offices are increasingly reshaping how they deploy capital. At this private roundtable for family office principals alongside Bloomberg Invest in New York, participants described a clear shift away from traditional allocations to private equity and venture funds and toward direct investments and co-investments. The conversation explored what is driving that change, how peer networks are evolving, the growing sophistication of family offices, and the challenges of executing direct deals in a more complex market environment.
Participants
- Meredith Bowen, President & Chief Investment Officer, Beatrice Advisors
- Clark Cheng, CEO & Chief Investment Officer, Merrimac Corp
- Anthony Gellert, Founder, Livingston Capital
- Paul Gyra, Managing Partner, Thompson Family Office
- Albert Luk, Director of Private Investments, Brodie Generational Capital Partners
- Sid Malhotra, Chief Investment Officer, Kactus Capital
- Lisa Morris, Managing Director, AKS Family Partners
- Andrew Mulderry, Chief Investment Officer, Willett Advisors
- Peter Pauley, Founder & CEO, QP Global Family Offices
- Carol Pepper, CEO, Pepper International Family Office
- Manuel Ramirez, Chief Investment Officer, Corporacion Finestra
- Adam Russ, Global Head of Wealth Management & Business Lending, Deutsche Bank
- Dave Sachse, Founder & Managing Partner, Sachse Family Fund
- Anthony Valvo, Managing Director, New York & Head of Private Bank, US, Deutsche Bank
Bloomberg Participants
- Kristine Owram, Team Leader, Bloomberg Wealth
- Devon Pendleton, Reporter, Bloomberg Wealth
Key Themes
- From Fund Allocations to Direct Deals
Participants described a decisive move toward direct investing over the past decade. Avoiding fund fees, gaining greater control over capital, building direct relationships with management teams, and maintaining flexibility around investment horizons and exits were all cited as key motivations. The shift is not only financial but psychological. As one participant noted, when families hear the word “fund,” they tend to think about fees and lock-ups, whereas the word “deal” they think about making money.
Several investors noted that their capital mix has changed dramatically. One participant explained that where their firm once allocated roughly two dollars to direct deals for every dollar committed to funds, that ratio has now moved closer to five to one.
- The Rise of Peer-to-Peer Collaboration
Alongside the move toward direct investing has been a marked increase in collaboration among family offices. Rather than relying exclusively on banks or intermediaries for deal sourcing, families are increasingly sharing opportunities directly with one another. Conferences, curated networks, and informal investor communities are playing an important role in facilitating these relationships. Participants described a growing culture of peer-to-peer collaboration, with families meeting each other through industry events and sharing opportunities directly.
As one participant noted, often, a family with deep sector expertise will take the lead in evaluating and structuring a transaction while others participate as co-investors. If one family has expertise in sectors such as semiconductors, artificial intelligence, or real estate, they may lead the deal and invite other families to participate alongside them.
- Building Institutional-Grade Capabilities
Direct investing demands a different level of internal capability than committing capital to funds. Participants emphasized that many family offices have spent the last decade building in-house investment teams, often recruiting professionals from private equity, venture capital, and institutional asset management. Writing a check to a fund, one investor noted, is fundamentally different from executing direct buyouts or venture investments. Direct deals require deeper diligence, sector knowledge, and operational oversight. This shift reflects the broader institutionalization of family offices as wealth transitions to younger generations who often take a more active role in portfolio construction and investment decisions.
- A Long-Term Compounding Mindset
Unlike many institutional investors that focus heavily on IRR targets, family offices tend to prioritize long-term capital compounding and wealth preservation. Direct investments offer greater flexibility around holding periods and allow families to avoid the forced exit timelines associated with traditional private equity funds. As one participant remarked, “You can’t eat IRR, but you can munch on MOIC,” emphasizing the importance of long-term value creation over short-term performance metrics. Another investor noted that if a family owns a truly strong business, they may prefer to hold it indefinitely rather than exit on a predefined timeline. This approach aligns with the multi-generational nature of family wealth.
- Discipline in a Crowded Market
Despite the growing appetite for direct deals, participants were candid about the work involved. Successful direct investing requires rigorous due diligence, disciplined underwriting, and a clearly defined investment thesis. One participant described the process as “truffle hunting,” explaining that much of the effort involves separating high-quality opportunities from the large volume of mediocre deal flow. The challenge is compounded by the growing number of intermediaries and organizations that present themselves as family offices without necessarily having the capital or long-term investment horizon associated with established families. Investors emphasized the importance of carefully vetting counterparties and maintaining disciplined deal selection.
- A More Difficult Return Environment
Participants also noted that the macroeconomic environment has shifted meaningfully since the peak investment cycle of 2021. Higher interest rates and more expensive leverage have made buyout transactions harder to structure, while certain venture sectors continue to trade at elevated valuations. One participant observed that generating a 20 percent return today requires significantly stronger growth assumptions than it did five years ago.
While the opportunity set remains compelling, investors cautioned that certain sectors, particularly artificial intelligence, may currently reflect peak valuations.
- AI as an Analytical Tool
Technology is not only an investment theme but increasingly an operational tool for investors. Some family offices are beginning to use AI systems to analyze deal flow and accelerate research. One participant explained that they can now create a dedicated analytical agent for each deal, producing detailed research reports within roughly thirty minutes and allowing small teams to evaluate opportunities much more efficiently. At the same time, participants cautioned that AI is also being used by companies themselves to generate financial projections and business models that may appear highly polished but require careful scrutiny.
- Geopolitics Is Shaping Investment Opportunities
Several investors highlighted how geopolitical shifts are influencing sector opportunities and capital allocation decisions. Defense technology, national security infrastructure, and critical minerals were repeatedly cited as areas attracting increased investor attention. Participants pointed to growing global demand for defense capabilities and supply chain resilience, particularly around rare earth minerals and strategic materials. Some family offices have already adjusted their geographic exposure based on geopolitical trends. One investor noted that their firm exited China several years ago after observing early signals that regulatory and political dynamics could eventually restrict foreign investment.
- Investment Policy and Portfolio Structure Matter
Participants also stressed the importance of maintaining clear asset allocation frameworks, particularly for smaller family offices with limited staff. Without a structured approach, investors risk chasing deals across too many sectors or asset classes. One participant emphasized the importance of developing a defined investment policy and asset allocation model before pursuing individual transactions. Some investors described structuring portfolios into three categories: liquidity reserves for near-term obligations, public market exposure for diversified beta, and private investments that generate alpha. The appropriate allocation to each category ultimately depends on the size of the family’s asset base and its long-term objectives.
- Relationships Remain the Core Advantage
Across the discussion, participants repeatedly returned to the importance of relationships in sourcing and evaluating deals. Many emphasized that the most valuable information in private markets often comes through trusted networks rather than formal processes. Building those networks requires significant time and effort, including frequent travel, meetings, and collaboration with other investors. Investors noted that reputation plays a critical role in these ecosystems. Over time, market participants develop clear views about which partners consistently bring high-quality opportunities and which do not.
Key Takeaway
Family offices are becoming more active, more collaborative, and more institutional in their approach to direct investing. They are shifting capital away from traditional fund structures, building internal expertise, and prioritizing long-term capital compounding. At the same time, the strategy requires significant discipline. As direct investing becomes more competitive and the macro environment grows more complex, success increasingly depends on strong networks, rigorous diligence, and clear portfolio strategy.
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