Private investments expected to significantly increase in 2023, according to AFFO
The role of investor families continues to gain strength in the economic landscape, according to the 9th barometer of the Family Offices Association.
Private equity: a favored sector by private investors
A family office is a structure dedicated to the management of assets and wealth interests of one or more affluent families. These entities focus on three main areas: wealth legislation and taxation, finance and investments, and human relations. As coordinators of wealth strategies, they bring together experts to steer the long-term investments of client families, on a larger scale, giving them clear visibility of the trends followed by private investors.
The AFFO's survey for 2023 reveals that these entities continue to contribute significantly to regional and national economic growth despite an environment marked by multiple crises. According to its findings, these private investments are mainly concentrated in the sectors of infrastructure, private debt, as well as in SMEs, ETIs, and start-ups. A direct support to the economic fabric that is welcome, at a time when the rise in rates is driving an increasing number of entrepreneurs away from traditional banks.
A rebound in private investments
According to the majority of the respondents surveyed, family office investments significantly increased in 2023, both in France and internationally (+11 points compared to the previous year). A trend that highlights a notable recovery after a muted year in 2022. The most popular asset classes include private equity, listed stocks, and investment real estate.
Inflation concerns and global geopolitical tensions significantly influenced investment choices, prompting family offices to adopt more cautious strategies than usual. Therefore, portfolio diversification remains a priority for these entities, in order to smooth out the risks associated with fluctuations in global economies.
Finally, wealth transfer remains a central concern for nearly 100% of advisors. Environmental issues and governance are also gaining importance, reflecting an increased awareness of the societal impacts of investment decisions.
For 2024, family offices anticipate a year marked by ongoing economic and geopolitical challenges. They remain vigilant regarding the evolution of monetary policies and financial markets, while seeking to preserve and sustain family wealth.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
