Family Office Insights on Alternative Investments | SALT iConnections Asia

TL;DR

Asian family offices discuss their approach to alternative investments and their exposure to private capital and cryptocurrencies in a panel discussion.

Transcript

foreign good morning ladies and gentlemen my name is Christy and I am a venture capital Venture Capital editor with U Street Asia thank you for joining us today we have three Asian family Offices here joining me on stage um all of them who are obviously experts in their fields I just want to start off by asking them to perhaps give a very quick two... Read More

Key Insights

• 🧑‍💼 Asian family offices approach alternative investments with a focus on sector-specific expertise and societal impact.
• 🧑‍💻 They rely on fund managers for due diligence and invest in sectors like deep tech, life sciences, property tech, and blockchain.
• 🧑‍💼 Family offices see themselves as partners to venture capitalists and focus on value-add contributions.
• 🧑‍🏭 Regional factors and expertise guide family offices' investment decisions in Asia Pacific.
• 🧑‍💼 Family offices evaluate changing regulatory landscapes in China and adjust their exposure accordingly.
• 🏣 The secondary market presents attractive opportunities for family offices post-COVID, especially in tech-focused sectors.

Questions & Answers

Q: How do family offices approach due diligence in highly nascent sectors like crypto?

Family offices rely on specialized fund managers who have expertise in the sector and collaborate with them to understand and assess investment opportunities. They also focus on technology-driven solutions that align with their values and interests.

Q: Do family offices face competition from venture capitalists in the same sectors?

Family offices see themselves as partners rather than competitors to venture capitalists. They provide capital and expertise in specific areas, relying on the track record and performance of the fund managers they work with. They can choose to invest in opportunities where they can add strategic value.

Q: How do family offices evaluate fund managers in Asia Pacific compared to their US portfolios?

Family offices consider the geographic advantage and expertise of fund managers when allocating capital. While the US has a deeper market and longer history, Asia, particularly Southeast Asia, has its own strengths, such as knowledge of local regulations and networks. Family offices focus on finding the best managers in specific sectors and regions.

Q: What is the family offices' exposure to the Chinese market and how do they navigate the changing regulatory landscape?

The family offices have prior exposure to China and have been diversifying geographically. They consider policy-driven returns and understand the political landscape when making investment decisions. They also rely on professional fund managers who can interpret regulations and make informed investment choices.

Q: How significant is the secondary market in family offices' strategies, and are there any attractive opportunities post-COVID?

Family offices have shown interest in the secondary market, particularly in tech-focused opportunities. They have observed dislocations in pricing, providing opportunities for buyers. The COVID-19 pandemic has created a buyer's market, and family offices are actively seeking investments in sectors aligned with long-term trends, such as healthcare, technology, and climate change.

Summary & Key Takeaways

• Three Asian family offices share their backgrounds and investment strategies, focusing on alternative investments such as private capital and cryptocurrencies.

• They allocate a portion of their portfolios to fund managers in various sectors, including hedge funds, venture capital, and private credits.

• The family offices have also shown interest in sectors like deep tech, life sciences, and property tech, aligning their investments with societal issues.