{"id":307,"date":"2022-12-05T05:38:08","date_gmt":"2022-12-05T11:38:08","guid":{"rendered":"https:\/\/33holdings.com\/learning-center\/?p=307"},"modified":"2022-12-05T05:38:08","modified_gmt":"2022-12-05T11:38:08","slug":"private-equity-real-estate-an-ideal-asset-for-a-family-office","status":"publish","type":"post","link":"https:\/\/33holdings.com\/learning-center\/2022\/12\/05\/private-equity-real-estate-an-ideal-asset-for-a-family-office\/","title":{"rendered":"Private Equity Real Estate \u2013 An Ideal Asset For a Family Office"},"content":{"rendered":"

According to an annual <\/span>Global Family Office report<\/span><\/a> from UBS bank, it is proven that eight of 10 family invest in private equity as an asset class.\u00a0<\/span><\/p>\n

If one were to look at statistics alone, in the past five years more than <\/span>40% of family offices have double their private-market allocation<\/span><\/a>. A deeper analysis of the numbers would suggest that <\/span>18% of all family office investments<\/span><\/a> are in <\/span>private equity real estate<\/b>.\u00a0<\/span><\/p>\n

Going by what\u2019s in the reports and surveys, family offices and private equity real estate comes across as a perfect match.<\/span><\/p>\n

Why private equity real estate for family offices<\/b><\/p>\n

A <\/span>family office<\/b> is set up with five Ps in mind. These are \u201c<\/span>perpetuity<\/b>\u201d, \u201c<\/span>prosperity<\/b>\u201d, \u201c<\/span>privacy\u201d<\/b>, \u201c<\/span>professionalism<\/b>\u201d and \u201c<\/span>personal<\/b>\u201d, says a <\/span>Deloitte paper.<\/span><\/a> Long term strategy for wealth management and wealth creation through passive income, tactical acumen for portfolio diversification and maximization of returns are some of the vital functions taken care of by a family office.<\/span><\/p>\n

Wealth creation through <\/span>family offices<\/b> is primarily driven through entrepreneurial success. So, family offices with strong entrepreneurial past records are more likely to invest in <\/span>private equity funds.<\/b><\/p>\n

Family offices<\/b> are driven towards <\/span>long-term wealth generation<\/b> that works well for generations to come. Other factors like environmental and social awareness make high net worth individuals invest in <\/span>private equity<\/b> to drive sustainable investment change. <\/span>\u00a0<\/b><\/p>\n

Private equity<\/b> is also considered a popular option to<\/span> hedge against inflation,<\/b> when compared to short-term volatility, which works in the best interests of a family office function.<\/span><\/p>\n

Benefits of investing in private equity real estate for a family office<\/b><\/p>\n

    \n
  1. Long term cash flow<\/b><\/li>\n<\/ol>\n

    Family offices<\/b> tend to invest from a long-term perspective and hence <\/span>wealth multiplier options<\/b> work the best for them. Family offices can leverage <\/span>real estate investments<\/b> so that they can transfer assets across generations to come.<\/span><\/p>\n

      \n
    1. Predictable appreciation<\/b><\/li>\n<\/ol>\n

      Family offices get one of the best appreciation values when they invest in <\/span>private equity real estate<\/b>. They consider it as an asset class as a safe capital space to work around with.<\/span><\/p>\n

        \n
      1. Tax benefits<\/b><\/li>\n<\/ol>\n

        Unlike other investment options, when <\/span>family offices<\/b> invest in <\/span>private equity real estate,<\/b> there are multiple tax deferring benefits available which turn out to be a great advantage.<\/span><\/p>\n

          \n
        1. Opportunity for portfolio diversification<\/b><\/li>\n<\/ol>\n

          It\u2019s no new news that a <\/span>diversified portfolio<\/b> reduces the risks of volatility and provides <\/span>higher returns<\/b> with <\/span>minimal<\/b> consequences<\/b>. This singular benefit transforms <\/span>private equity real estate<\/b> as the perfect diversification option for family offices to invest in.<\/span><\/p>\n

          In a fast changing economic contour based on the Federal Reserve\u2019s interest rate policy, the domino effect on the economy in general, the investment climate in particular \u2013 family offices could rely on private equity real estate as a \u201csafe haven\u201d to not only protect from capital erosion, but also generate consistent, risk free, long term returns on their investment.<\/span><\/p>\n

          Why 33 Holdings for private equity real estate<\/b><\/p>\n

          At <\/span>33 Holdings<\/span><\/a>, our <\/span>three pronged capabilities<\/b> of <\/span>private equity asset management<\/b>, <\/span>property management and rehabilitation<\/b> along with <\/span>vertical integration in real estate<\/b> gives us the benefit of tapping into multiple forays within <\/span>private equity real estate<\/b> to <\/span>maximize investment returns<\/b> for investors.<\/span><\/p>\n

          Be it <\/span>asset acquisition<\/b>, construction, managing a property and <\/span>financial asset management<\/b> rigour \u2013 there are systems, processes and technology in place for discipline, governance and compliance to ensure investors are protected at all times.<\/span><\/p>\n

          Family offices<\/b>, with their objective of safeguarding the <\/span>wealth estate<\/b> and growing it consistently with <\/span>long term wealth generation<\/b> to increase the size of the <\/span>family portfolio<\/b> value \u2013 would find an <\/span>ideal foil<\/span><\/a> in a <\/span>private equity real estate company<\/b>.<\/span><\/p>\n

          The <\/span>33 Holdings<\/b><\/a> investment relations team has specialists who can work with <\/span>family office<\/b> asset <\/span>managers<\/b> and guardians.\u00a0<\/span><\/p>\n

          Engage with our professionals<\/span><\/a> for an in-person conversation to get started on your <\/span>private equity real estate investments. <\/b>The team can also be reached over email at <\/span>ir@33holdings.com<\/span><\/a>.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

          According to an annual Global Family Office report from UBS bank, it is proven that eight of 10 family invest in private equity as an asset class.\u00a0 If one were to look at statistics alone, in the past five years more than 40% of family offices have double their private-market allocation. A deeper analysis of […]<\/p>\n","protected":false},"author":2,"featured_media":308,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45,46],"tags":[],"class_list":["post-307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-hedge-funds","category-real-estate-investments"],"_links":{"self":[{"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/posts\/307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/comments?post=307"}],"version-history":[{"count":1,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/posts\/307\/revisions"}],"predecessor-version":[{"id":309,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/posts\/307\/revisions\/309"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/media\/308"}],"wp:attachment":[{"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/media?parent=307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/categories?post=307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/tags?post=307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}