African family offices eye increase in alternative investments

Family offices in Africa are increasingly investing in alternative assets and private companies as many expect to see strong growth in the value of their assets in the next five years, according to a new study.

The survey, conducted by Ocorian, found that 91 per cent of family offices in the continent believe their risk appetite will increase over the next year, with 40 per cent strongly agreeing that investing more into alternatives is a growing trend.

Meanwhile, 93 per cent of family offices said that investment in private companies is growing where a family has an interest or background in.

The survey was conducted among family office professionals working in Nigeria, South Africa, Ethiopia, Kenya and Tunisia, who were collectively responsible for around $18.6bn (£14.5bn) in assets under management.

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The growth in the value of their assets is increasingly driving their philanthropic activity as well.

All the executives in the survey said they expect the level of philanthropy to increase over the next two years, with more than six out of 10 expecting a rise of 15 per cent or more.

In addition, the survey found that the next generation is expected to have growing influence on investment decisions.

“Family offices in Africa are anticipating significant asset growth over the next five years, building on the strong momentum they have experienced recently,” commented John Felicite, commercial director at Ocorian.

He added: “This overall evolution is translating into an intensified focus on philanthropy, a greater appetite for risk, and increased engagement from the next generation – even if they aren’t able to quite make their wishes a reality, yet.”

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