Key Takeaways
- • BNY Wealth senior investment analyst Kevin Shea told the FWR Family Office Investment Forum in Manhattan that AI is "still in its acceleration phase" three years after ChatGPT's introduction, and named it the standout theme for family offices.
- • Industry executives cited estimates that the private credit market will nearly double to around $4 trillion by 2030, while speakers urged strict asset-quality disclosure and disciplined, smaller incremental investments.
- • Panelists described the secondaries market as growing at a "staggering pace" and said about 70 per cent of US single and multi-family offices make direct investments, per Legacy Wealth principal Lindsey Sichel.
- • Speakers highlighted Regulation A+ "mini-IPO" offerings, which allow private companies to raise up to $75 million annually from accredited and non-accredited investors.
Summary
At the Family Wealth Report-sponsored Family Office Investment Forum in New York, speakers focused on AI, private credit, secondaries and direct investing as the themes shaping family office allocations. Kevin Shea, senior investment analyst for BNY Wealth, opened the conference by calling AI the standout theme for family offices and said it remains in its acceleration phase three years after ChatGPT. He said AI is outpacing the growth of the internet at a comparable stage, described OpenAI as "the fastest growing company the world has ever seen," and pointed to heavy AI capital expenditure by Meta, Microsoft, Amazon and Google. He also cited disruption from Anthropic's Claude Cowork in software. Shea advised investors to look for "where the bottlenecks are," such as data centers, and to seek private exposure to AI-related companies.
In private credit, industry executives cited estimates that the market could nearly double to around $4 trillion by 2030. Mike Szymanski of Aquiline Credit called for "clear disclosure on asset quality." Michael Perez of Stone Point Capital expected spreads to widen and advised investors to "stay in dry powder," favoring smaller incremental investments over large directional bets. Stuart Katz of Robertson Stephens argued that research is critical because "there's no upside in private credit" and said, "You win by losing less."
Secondaries were described as growing at a "staggering pace that you don't see in the public markets," according to Maxime Seguineau of Raido Ventures. Will Snape of Open VC said the longer companies stay private, the larger the secondaries market becomes. Open VC's secondaries index fund aims to capture alpha without being an early-stage investor, while Kelly Han of The Gate Technologies Capital targets 40 per cent growth with a three-to-five-year exit horizon. Panelists agreed that access to private company financials is essential in this opaque market, with Snape stressing the need for "full traceability of shares."
Direct investing has grown more popular as private equity fund liquidity has tightened. Lindsey Sichel of Legacy Wealth estimated that 70 per cent of US single and multi-family offices make direct investments. Control and alignment with family values are key appeals, and Legacy evaluates people, pricing, performance and philanthropy.
Other sessions covered collectibles, wealth migration, the Sharpe ratio, rare disease drugs, Regulation A+, coastal marinas and NextGen investors.
In private credit, industry executives cited estimates that the market could nearly double to around $4 trillion by 2030. Mike Szymanski of Aquiline Credit called for "clear disclosure on asset quality." Michael Perez of Stone Point Capital expected spreads to widen and advised investors to "stay in dry powder," favoring smaller incremental investments over large directional bets. Stuart Katz of Robertson Stephens argued that research is critical because "there's no upside in private credit" and said, "You win by losing less."
Secondaries were described as growing at a "staggering pace that you don't see in the public markets," according to Maxime Seguineau of Raido Ventures. Will Snape of Open VC said the longer companies stay private, the larger the secondaries market becomes. Open VC's secondaries index fund aims to capture alpha without being an early-stage investor, while Kelly Han of The Gate Technologies Capital targets 40 per cent growth with a three-to-five-year exit horizon. Panelists agreed that access to private company financials is essential in this opaque market, with Snape stressing the need for "full traceability of shares."
Direct investing has grown more popular as private equity fund liquidity has tightened. Lindsey Sichel of Legacy Wealth estimated that 70 per cent of US single and multi-family offices make direct investments. Control and alignment with family values are key appeals, and Legacy evaluates people, pricing, performance and philanthropy.
Other sessions covered collectibles, wealth migration, the Sharpe ratio, rare disease drugs, Regulation A+, coastal marinas and NextGen investors.
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