Family offices—private wealth management firms that serve ultra-high-net-worth families—have been on a rapid upward trajectory. Since 2019, their numbers have tripled, sparking a race among private equity firms, hedge funds, and venture capital firms to capture their attention and investments. Once an overlooked segment of the wealth management industry, family offices are now making waves, and the growth trend is expected to continue.
A recent report last year by investment data firm Preqin reveals that the global number of family offices grew by more than 21% since 2019, reaching a total of 4,592, while other reports suggest it could be higher than 8,000. This surge marks a threefold increase since 2019, with a concentration in North America leading the charge. North America alone accounts for over half of the assets held in family offices worldwide.
The Shift Towards Direct Investment and Private Equity
Many family offices have started to act like private equity firms, making direct investments in private companies. This shift reflects their desire to capture more of the unlisted space themselves, bypassing intermediaries to gain greater control over their investments. The trend is particularly prominent in illiquid segments such as private debt and private equity secondaries, where family offices have remained consistently active.
Positioned for Economic Resilience
Despite economic uncertainty, family offices are well-positioned to weather turbulent markets. With a long-term investment horizon and a knack for navigating economic cycles, they are more nimble than traditional institutions. Many family offices hold substantial cash reserves, allowing them to seize opportunistic deals and ride out the economic waves with confidence.
Diversification and Hedging Through Oil & Gas Investments
One key area where family offices are increasingly focusing their attention is the oil and gas sector. Investment in this space serves several purposes—chiefly diversification, inflation hedging, and replacing traditional private equity investments. Family offices often form syndicates, partnering with other like-minded investors to make significant commitments to large deals. In some cases, newer family offices team up with seasoned investors in the oil and gas industry to gain access to high-quality assets.
Upstream and midstream oil and gas investments are the primary focus for family offices, with downstream assets generally reserved for major global refineries. Beyond direct funding, family offices are also contributing to broader services within the oil and gas industry.
Filling the Gap Left by Institutional Investors
Family offices are filling a crucial gap left by institutional investors like pensions, endowments, and foundations. These entities have been distancing themselves from the oil and gas sector due to growing concerns over environmental, social, and governance (ESG) policies. Unlike these institutions, family offices do not face strict capital timelines, giving them the flexibility to make long-term investments and act quickly when opportunities arise. This agility, combined with their patient capital, has made them major players in the oil and gas market.
As the number of family offices continues to grow, their influence in both the wealth-management industry and sectors like oil and gas is undeniable. Their ability to diversify, adapt, and seize opportunities positions them as key players in shaping the future of investing.
A Differentiated Approach to Family Office Investor Outreach
At EnerCom, we pride ourselves on our unique, four-step approach to family office investor outreach, which is designed to foster meaningful connections and deliver tangible results. Our strategy leverages our in-house offerings to connect you with the right investors:
- Consulting: We review and optimize your communication strategies to appeal to family offices. Our approach includes the Arrow™ Roadshow, featuring both Virtual Arrow™ and inbound requested meetings, comprehensive family office reach-out, and access to our proprietary network.
- EnerCom Denver – The Energy Investment Conference: We organize the largest family office-attended energy investment conference, providing a direct path to networking and engagement with influential investors.
- Oil & Gas 360® News Platform: We utilize our platform to amplify recognition through company profiles, executive interviews, and sponsored content—allowing your message to resonate with family office investors.
- Closing Bell Email Newsletter: Published after the market close each day, our newsletter reaches a global audience of over 14,000 opted-in subscribers. This daily communication ensures your updates reach the inboxes of a targeted, engaged audience.
Our proven outreach model delivers results by aligning your message with the right family offices, and we are committed to helping you build lasting, profitable relationships.
Please contact Larry Busnardo at lbusnardo@enercominc.com for more information and a list of our services.
