Private markets have grown dramatically in recent years, and family offices have become major players in this market. A recent survey showed that 63% of family offices plan to invest even more in private equity and alternative investments. Anticipating this further growth, the top 20 wealth managers and private equity firms are launching new private-market funds moving forward. With this in mind, Ken Gamskjaer, CEO and Co-founder of Aleta, shares insights into these shifts and explains how family offices can use new technology to stay ahead.
Shifting dynamics
Global uncertainty in 2022 and 2023 may have caused a temporary slowdown in private equity investments. But the truth of the matter is that the sector has been on a steady upward trajectory over the last decade. Private markets have been growing rapidly, increasing by nearly 20% per year. One of the main reasons for this growth is the fact that private companies are choosing to stay private for longer, increasing the pool of private investment opportunities available. New technology is supporting this growth as digital platforms are making private investments easier for investors to manage.
“As private companies are choosing to stay private for longer, investors must have an allocation to private markets, in order to obtain the same portfolio diversification as previously. ” – Ken Gamskjaer, CEO, Aleta.
Just like public markets, trends in private markets are also evolving. Areas such as AI startups, health-tech, and the rise of sustainable investing, are directing where investment capital is going. Unlike traditional wealth management firms operating under strict regulations, family offices’ flexible nature and much longer-term investment strategy allow them to capitalise effectively on these changing trends.
Simplifying complexity
While allocating to private markets helps to balance portfolios, it also brings its own set of challenges for family offices. Trying to stay on track with different asset classes, such as venture capital, fixed income, and real estate – some of which are in different currencies – can be overwhelming. And the sheer complexity of such a task is beyond any traditional wealth management system. In fact, Deloitte Private’s Family Office Insights Series found that the most common problem for family offices is that their financial reporting systems lack speed and the proper functionality for dealing with private assets.
Ken Gamskjaer, who has been helping family offices bridge the digital gap for over a decade, developed Aleta to solve such problems. Aleta is a unified platform designed specifically for family offices. It makes it easier to track private equity, automate tasks, and offer real-time insights. In addition, with its mobile app, the platform also empowers decision-makers within families to make informed decisions whenever and wherever they need to.
Key benefits of Aleta:
- Simplified wealth tracking across private equity investments and more.
- Enhanced portfolio management through actionable insights.
- User-friendly mobile app to keep updated on market shifts and portfolio performance, ensuring control at all times.
“More private equity investments mean more statements to process, and many family offices spend far too much time on this every month. That’s why many of our clients have chosen Aleta for our dedicated private equity reporting, a solution we’ve spent years developing and refining based on real client needs.” – Ken Gamskjaer, CEO, Aleta.
Staying ahead with innovation
Private markets present significant opportunities for family offices. However, managing multiple private equity investments can quickly become very complicated for any traditional wealth management system. By adopting modern family office software platforms like Aleta, family offices can simplify the tracking of their private equity and alternative investments, leading to more informed decision-making. This allows them to remain competitive and stay ahead in the rapidly evolving private market landscape.
About Aleta
A next-generation wealth platform that automates your data management and enables you to leverage the full value of your data. You’ll be able to analyse your wealth from all angles with powerful features in an intuitive and elegant platform. And you can drill down to the transaction level to illuminate every nook and cranny of your wealth.
As frontrunners, we want to inspire you to look beyond the bottom line, which is why you get sustainability insights alongside traditional risk and return metrics. With a holistic wealth overview in Aleta, you can preserve and build a family legacy with confidence.
