Family Offices Leverage Use Rises to Capture Deals, Says Deutsche Bank

Family offices leverage strategies are expanding as ultra-wealthy investors adopt more sophisticated financing to capture opportunities and manage risk, according to a Deutsche Bank report. Over half of the 209 family offices surveyed by Germany’s largest lender view leverage as a key part of their investment approach, with real estate cited as the most common reason for increased borrowing in the past year. The report said family offices are better prepared than in previous cycles, securing long-term credit lines to rebalance portfolios and fund opportunistic deals amid volatile markets. The adoption of institutional-level practices highlights their growing influence across private markets, buyouts, and real estate, collectively managing over USD4tr worldwide for the world’s richest families.