The primary objective of family offices is wealth preservation and growth to ensure long-term recurring revenue for generations to come.
In recent years, driven by the low-interest environment, improved capabilities on the investment management front and the need to hedge against bonds and equities, family offices have broadened their focus to include alternative investments in their family office asset allocation.
Many subscription-based SaaS and e-commerce companies realize that equity and debt are not optimal ways to finance growth.
Pipe has a proprietary rating model, similar to Fitch/Moody’s ratings for bonds, that provides a uniform way for investors to evaluate recurring revenues.
Currently, companies are weighing what the return to the office may look like in the future when assessing their existing spaces.
According to Lucas Rotter, CEO of appraisal software developer Valcre and a former appraiser for a wide range of asset types at Collier, co-working has similarities to hotels.
In addition, the fact that cryptocurrencies and digital assets do not correlate to any other asset classes makes them an attractive choice when diversifying family office portfolios.
Not only is cryptocurrency trading built on it, but the technology is also rapidly being adopted across multiple verticals as a value-add to businesses.
As the war on climate change intensifies, carbon trading is emerging as a new asset class.
Two primary markets exist – Compliance carbon markets , where companies and individuals trade carbon credits voluntarily.
For family offices with mandates focused on diversification into sustainable investments, this is an interesting opportunity to get into an immature but growing market.
Like fine art and vintage wines, collectibles like sports memorabilia, Pokemon cards, Non-fungible tokens figurines are all becoming part of a new emerging asset class.
Given these facts, it is little wonder that venture capitalists and market giants are entering the market and family offices may follow suit.
As existing market trends continue, the search for yield drives family offices to explore more speculative asset classes than ever before.