Governance
Direct Investment
Investing directly in assets like real estate or companies, bypassing intermediaries like mutual funds or ETFs.
What is Direct Investment?
Direct investment involves investing directly in assets such as real estate or companies, without using intermediaries like mutual funds or ETFs. This approach allows investors, such as family offices, to have greater control over their investments and potentially achieve higher returns by eliminating management fees and other intermediary costs.
Benefits of Direct Investment for Family Offices
Family offices often prefer direct investments due to the ability to tailor investments to specific family goals, gain deeper insights into the assets, and build long-term relationships with businesses. This strategy can also provide opportunities for active involvement in the management and strategic direction of the invested companies or assets.
Related Terms
Co-investing
When family offices pool their money together to make an investment.
ViewDirect Investing
When a family office invests directly in a company or asset, rather than through a fund.
ViewDue Diligence
A comprehensive appraisal of a business or investment opportunity to evaluate its commercial potential and risks.
ViewPrivate Equity
Capital investment made into private companies not listed on public exchanges, often to fund growth or restructure opera...
ViewDirect Investment
Investing directly in assets like real estate or companies, bypassing intermediaries like mutual funds or ETFs.
View