Institutions Learn From Family Offices as Private Credit Expands

Institutions learn from family offices by adopting strategies that treat illiquidity as an asset and formalise governance for private credit, according to strategist Daniel Xystus. In a note dated 15 September, he highlighted five practices worth considering: treating illiquidity as an asset class, preparing private-credit frameworks in advance, balancing co-investment with outsourcing, strengthening operational infrastructure, and aligning values with measurable returns. With family offices in Asia increasingly directing capital to sustainability themes and private credit often the first allocation for many, Xystus urged CIOs to adapt by reshaping liquidity expectations, publishing governance checklists and formalising impact mandates. “Borrowing a few pages from their playbook can improve outcomes without changing who you are,” he said.