Market Overview

Schroder Adveq Study Finds US Family Offices Are Missing Key Opportunities in Private Equity


According to a survey released today from Schroder Adveq, a leading
asset manager investing in private equity globally, the majority of
family offices are investing in private equity but are overlooking
opportunities in smaller deals (under $100 million in Enterprise Value)
and in markets outside of the United States.

Conducted among family office and private wealth professionals at the
Opal Family Office and Private Wealth Conference in Newport, Rhode
Island, the survey found that approximately 70% of respondents are
invested in private equity, but only one third of those investors (c.
35%) had private equity investments allocated to funds focused on small

That said, family offices are beginning to recognize the most attractive
characteristics within smaller-sized deals, including greater
buy-and-build opportunities and lower purchase prices as the top two
reasons. The potential for a larger universe of buyers at the time of
exit as well as the opportunity to better diversify investors' portfolio
of managers are additionally cited as top reasons smaller deals are

"Large buyouts clearly command the most attention, but this leads
investors to think this is the preferred or even safest place to find
attractive opportunities,"
said Ethan Vogelhut, Head of Buyout
Investments, Americas.
"However, in reality, smaller deals
make up the vast majority of the opportunity set for investors, but only
25% of capital goes into these types of deals, offering savvy investors
access to an often-untapped and less efficient segment of the market."

Family offices are also failing to recognize private equity
opportunities in emerging markets and in Europe, with only 5% and 6%,
respectively, citing these regions as having the most opportunity over
the next year. Instead respondents showed a large home-bias towards
investing in the U.S. with 75% citing the U.S. as having the most

In emerging markets, respondents were most concerned about political
uncertainty (32%). Fifteen percent were most concerned about the lack of
private equity managers with experience or expertise in emerging
markets, while 14% worry that there is not enough information available
to fully vet potential investments in the region.

"The survey found that investors' are not currently taking advantage
of opportunities in PE within emerging markets and Europe. This was
surprising to us as we see as strong opportunities in both of these
said Steven Yang, Head of Global VC for Schroder Adveq.
"Investments in China and India on the emerging market side are
offering competitive returns. Opportunities in the small to mid-segment
of the Asian private equity market, in sectors like healthcare for
example have demonstrated strong growth potential. In Europe, we are
also finding opportunities in small to mid-buyouts and turnarounds."

Additional findings include:

  • 28% of family office professionals are finding the most attractive
    private equity-like opportunities in venture capital, followed by
    growth (26%), turnaround (12%) and buyout (12%) with 18% finding
    opportunities in all of these areas.
  • Nearly a third (30%) of respondents did not hold private equity
    investments at all within their portfolios.

Schroder Adveq is a leading asset manager investing in private equity
globally. Adveq was acquired by Schroders in July 2017 to complement
existing alternatives capabilities and expertise in the real estate,
infrastructure and private asset sectors. Together with clients, the
firm invests across the full company life cycle through primary and
secondary fund investments and direct/co-investments.

Note to Editors

For trade press only. To view the latest press releases from
Schroders visit:

Schroder Adveq

Founded in 1997, Schroder Adveq is a leading asset manager investing in
private equity globally and since July 2017, a wholly owned subsidiary
of Schroders plc. It offers specialised investment solutions which allow
the firm's clients to access select private market segments through
primary, secondary and direct/co-investments.

Schroder Adveq's client base comprises institutional investors such as
pension funds, insurance companies, family offices and other financial
institutions located in Europe, North America and the Asia-Pacific
region. Many investors of Schroder Adveq are repeat, long-term clients
with whom the firm has developed a role as a trusted partner for private
market investing.

Schroder Adveq has offices in Zurich, Frankfurt, London, Jersey, New
York, Beijing, and Hong Kong.

Further information about Schroder Adveq can be found at

Schroders plc

As a global investment manager, we help institutions, intermediaries and
individuals meet their goals, fulfil their ambitions, and prepare for
the future. But as the world changes, so do our clients' needs. That's
why we have a long history of adapting to suit the times and keeping our
focus on what matters most to our clients.

Doing this takes experience and expertise. We bring together people and
data to spot the trends that will shape the future. This provides a
unique perspective which allows us to always invest with conviction. We
are responsible for £449.4 billion (€508.2 billion/$593.3 billion)* of
assets for our clients who trust us to deliver sustainable returns. We
remain determined to build future prosperity for them, and for all of
society. Today, we have 4,600 people across six continents who focus on
doing just this.

We are a global business that's managed locally. This allows us to
always keep our clients' needs at the heart of everything we do. For
over 200 years and more than seven generations we've grown and developed
our expertise in tandem with our clients' needs and interests.

Further information about Schroders can be found at

Issued by Schroder Investment Management Limited. Registration No
1893220 England. Authorised and regulated by the Financial Conduct
Authority. For regular updates by e-mail please register online at
for our alerting service.

*as at 30 June 2018

View Comments and Join the Discussion!