Whilst this trend will only grow, research firm Preqin currently estimates that family office money represents c.9% of private equity funds capital -more than double from 5yrs ago.
"Pools of family capital are increasingly transactional with families looking for direct investment opportunities," said John Studzinski, Blackstone's ambassador to large family offices and sovereign wealth funds. To be sure, the rich aren't abandoning private equity shops as a place to put money. They pour an average of 27 percent of their assets into these funds, according to research firm Preqin. And family money represents 9 percent of private equity funds, more than double from five years ago. Carlyle co-founder David Rubenstein last week said family offices, along with sovereign wealth funds, are the firm's fastest-growing sources of new money. Still, an estimated $4 trillion in family capital globally is up for grabs, underscoring why top private equity firms are jockeying for a slice. Blackstone's Studzinski helps families find transactions and deal flow, which sometimes goes in both directions.