Centimillionaire family offices may invest through wealth managers, in cash-flowing real estate, and in operating businesses or other areas where the family has experience. Their mix varies by family. The excerpts below describe real estate, private equity, direct investments and property funds, but do not establish a single standard portfolio.
Common investment areas
One speaker describes three areas: wealth management, real estate, and the business or sector where the family built its wealth. The real estate allocation may include cash-flowing properties and development. The speaker says families often choose particular states, property types and managers based on their own conviction, rather than spreading investments across every market.
Real estate can be held in different ways. The excerpts mention direct property purchases, syndicated deals, REITs and private real estate funds. A REIT can give investors exposure to commercial property without directly managing it; private funds pool investor capital to buy property or property-related investments.
Businesses and private investments
Operating businesses can be another focus, especially when a family already understands the sector. One event speaker describes using real estate as a funding source to acquire dental practices, then consolidating those practices and recapitalizing the group with private equity. The example shows how property and business investments can work together in one strategy.
The excerpts also describe private equity and direct investing in private assets. One speaker discusses a range of real estate and private investment options, including rental properties, commercial real estate partnerships, private REITs, private lending and mortgage notes. These are examples from event discussions, not a checklist that applies to every family office.
How to think about the mix
The excerpts point to a family-specific approach: investments may reflect where the family made its money, what it knows well, and which managers and markets it trusts. They do not provide a representative allocation for centimillionaire family offices, so they cannot show how much these families typically put into each category.
The statistics here describe the size and growth of the centimillionaire population, rather than investment allocations. Henley & Partners counted 29,350 people worldwide with at least US$100 million in liquid investable assets in 2024. Its definition of wealth includes listed holdings, cash and debt-free residential property. These figures provide context for the group, but they do not identify what its family offices invest in. (Henley & Partners, 2024)
From Family Office Club events
"the second bucket is real estate usually cash flowing real estate maybe 20% development is common for our clients"
Sources
- Henley & Partners, Centi-Millionaire Report 2024. henleyglobal.com
- Henley & Partners, wealth definition in Centi-Millionaire Report 2024. henleyglobal.com
- Family Office Club event transcript
- Family Office Club event transcript
- Family Office Club event transcript
- Family Office Club event transcript
- Family Office Club event transcript
- Family Office Club event transcript
Educational only. Nothing on this site is investment, tax, legal, accounting or other professional advice, or a recommendation on any security, manager, structure or allocation. Speak with qualified professionals before acting.