Direct Investing (Part 2): What do the Numbers Say?

There is not a lot of data to call upon to glean the performance of direct private investments; however, based on a large, robust study focused on institutional investors, family offices should know that the performance of this type of investing has been mixed at best. In this paper, the second in a three-part series, we examine the peformance of direct investments relative to both private fund structures and the public markets. In part one, we focus on trends in direct investing and the motivations driving private clients. In part three, we discuss some factors to keep in mind while developing a direct investment strategy.