Family offices and direct investments

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Family offices differ from independent asset managers in the scale of their direct investments. Very wealthy families invest a growing share of their wealth in unlisted companies, real estate, infrastructure and private-equity funds, often by co-investing with other families or with specialised managers.¹ These investments require skills in analysis, negotiation and monitoring which the family office either builds in-house or buys in.

Geneva offers such investors a favourable environment: the presence of private-equity funds and specialised managers, a community of entrepreneurs and families, legal and tax expertise, and proximity to the international organisations and the commodity trading houses, which open up prospects in emerging countries. Geneva family offices invest throughout the world, including in Africa, where Part I will show their growing role.

These investments raise particular compliance questions. The origin of the co-investors’ funds, the reputation of local partners, the risks of corruption in certain countries and the sanctions regimes must be examined with the same rigour as for bank investments. Family offices that invest directly in high-risk countries must have appropriate verification procedures in place, failing which they expose the family to legal and reputational risks.

Worked example. A Geneva family office manages CHF 500 million. It invests 30 per cent of this, or CHF 150 million, in unlisted investments: direct holdings in companies, real estate and private-equity funds. These investments, which are less liquid, require a horizon of ten years or more, but they can offer higher returns and diversification relative to the listed markets. The family office must keep sufficient liquidity for the family’s needs and for the capital calls on the commitments it has made. The figures are fictitious.

Notes

1. UBS, Global Family Office Report 2025 (21 May 2025, 317 family offices surveyed, average wealth of USD 2.7 billion): for Swiss family offices, 44 per cent in alternative investments (including 16 per cent private equity, 12 per cent real estate and 5 per cent hedge funds) against 56 per cent in traditional investments; for Europe excluding Switzerland, 49 per cent in alternatives, including 27 per cent private equity. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.