Innovative private capital strategies family offices can’t ignore

Family offices have long been drawn to the promise of private capital markets – seeking higher returns, lower volatility and the chance to back entrepreneurial ventures beyond the glare of public exchanges. 

In the Global Family Office Community's July 2025 GFOC Journal, we explore how this space has evolved, why fundraising is cooling after a pandemic-fuelled peak, and two innovative ways to stay ahead of the curve without over-relying on traditional fund commitments.

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Why private markets still matter

• Strong long-term performance: From 2019 to 2023, private equity delivered roughly 16% p.a. – double the 8% p.a. return of the global public equity benchmark.
• Crisis resilience: Private equity’s drawdowns have consistently been smaller across major market shocks, from the dot com bust to the Covid-19 crash.
• Low correlation: Its limited overlap with listed markets helps dampen overall portfolio volatility – and lets you champion companies aligned with your family’s values.

Despite this allure, 2022–24 saw a noticeable slowdown in fundraising. Managers faced tougher exits and deferred distributions, prompting fresh approaches to unlock value in existing portfolios.

Two fresh ideas for private-market exposure

Net Asset Value (NAV) financing

Instead of selling assets at inopportune times, fund managers are increasingly borrowing against their portfolios. Loans secured across multiple companies let sponsors fund follow-on investments or pay dividends, while investors can target credit-style returns of 8–12% p.a. through diversified NAV-lending vehicles.

General Partner (GP) stakes

By buying a minority equity slice in a private-markets manager itself, you earn a share of management fees, carried interest and the GP’s own 'skin-in-the-game' commitments. This strategy offers predictable income streams, though liquidity depends on finding secondary buyers for GP interests.

We believe that, even if blockbuster returns moderate in today’s higher-rate world, these alternatives can enrich a multi-asset family office portfolio, balancing income, growth and diversification.

Find out more

Interested in how NAV financing or GP stakes might fit into your family’s strategy? Read the full article and learn more about unlocking private capital opportunities.

Get in touch to find out more about our Family Office Investment Advisory services.