Family office venture portfolio performance exceeded expectations
Key takeaways
01
Family office venture portfolios exceeded expectations
FOs reported an internal rate of return (IRR) of 24% from their venture portfolio in 2021, while 2020 respondents reported 14% IRR. FOs expect to increase investment in venture in 2022-23.
02
Family offices are investing in specialist, diverse and female-led funds
80% of FOs are interested in sector or thesis-driven funds, and 60%+ of FOs are interested in ethnically diverse and female-led funds.
03
Increased interest in ESG and impact-focused VC investments
80% of FOs are making venture investments in ESG and impact-focused funds and startups. Climate change is the top area of interest.
Family office venture portfolio returned 24%
Within the venture portfolio, secondaries were the top-performing investment (28% IRR), followed by co-investments and direct investments (both 26%).
Venture represents 12% of the average family office portfolio
The average venture allocation in 2021 was 12% of total the total portfolio, versus 10% in 2020. The average FO venture portfolio consists of 17 direct investments (53% of assets) and 10 funds (47% of assets).
Family offices are investing in specialist, diverse and female-led funds
80% of FOs are interested in sector or thesis-driven funds, while 60%+ of FOs are interested in ethnically diverse and female-led funds.
Series A represents 24% of the FO venture portfolio
FOs are often allocating funds to Series A and direct investments, where they can capture early-stage value while also de-risking their investment (post-product-market fit).
Increased interest in ESG and impact-focused VC investments
80% of FOs are making venture investments in ESG (environment, social and governance) and impact-focused funds and startups. Climate change is the top area of interest.
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Co-authored by Campden Wealth and SVB Capital
The report was developed by Campden Wealth in partnership with SVB Capital.
