Younger Family Office Investors Seek Liquidity and Shorter Investment Horizons

Younger family office investors are placing greater emphasis on liquidity and shorter investment horizons as changing careers, locations and markets reshape the priorities of the next generation.

Rémi Casals, head of international wealth solutions at First Eagle Investments, said investors in their 20s and 30s remain comfortable committing capital for four to six years but are less inclined towards investments requiring 10- to 15-year commitments.

Younger family members tend to be more global and mobile and are more willing to change careers and locations, influencing how they think about locking up capital.

Greater liquidity also provides the flexibility to respond to investment trends that can emerge and disappear rapidly.

Casals said investors may therefore be willing to accept a premium for sacrificing daily liquidity while avoiding much longer commitments, creating implications for asset managers seeking to attract the next generation of family office capital.