(Bloomberg) — Family offices put a larger proportion of their portfolios into stocks last year than in 2020, according to a KKR & Co. survey.
According to a KKR Family Capital report released on Tuesday, which surveyed more than 75 chief investment officers, public equities accounted for 29% of the average total assets of the family offices surveyed, down from 31% in 2020. Family offices are turning to real assets, namely tangible investment categories such as construction and timber, with their share of the average rising from 13% in 2020 to 15% in 2023.
The changes come against a backdrop of rising interest rates, which were near zero when the last survey was in 2020. Despite rising interest rates, the S&P 500 ended 2023 near all-time highs, up 24%.
The survey found that investment officials are more concerned about increasing investment in private credit, infrastructure and private equity in the next year. New York-based KKR is one of the world’s largest private equity firms, with more than $550 billion in assets under management at the end of 2023.
Most respondents to KKR’s survey manage between $1 billion and $5 billion. About 40% of participants are from North America, with the remainder coming from other regions.
