Family Office Investment Trends for 2022: View from the Top

As a worldwide ecosystem that actively connects and serves ultra-high net worth families, Family Office Networks is positioned at the forefront of the family office industry. Every year, we host virtual and in-person thought leadership events around the world to introduce new investment and luxury opportunities. In addition, our team meets privately with many families to discuss their areas of concern and priorities for the future. These high-level discussions during the past few months point to several clear trends that we expect to see continue in 2022 and beyond.

Assets Are Flowing into Cryptocurrency, Blockchain & DeFi

Cryptocurrency had a big year in 2021 and 2022 promises to be even more eventful. As a result, interest from family office investors is skyrocketing. Bitcoin and other digital currencies hit all-time highs this year, regulation is top of mind, and everyone from Elon Musk to Bill Gates to Kayne West is involved these days – not to mention the incredible number of institutional investors.
“As family office demand for new ways to invest in blockchain, crypto, and decentralized finance, our FON Cryptocurrency Investment Club makes it easier for investors to access high-quality investment offerings and for opportunities to connect with the right investors. The club provides an efficient way to get deals done and funds closed,” said Family Office Networks Founder Andrew Schneider.

Hedge Fund Investing Continues to Increase in Popularity

Fueled by fears of inflation, family offices significantly increased their allocations to hedge funds in the third quarter of 2021, according to a FON survey. Hedge funds on average represented 7.5% of investment allocations by family offices in the third quarter, up from 5% in the previous two quarters. Hedge Fund Alert reported recently, “Since the prolonged bull market that followed the end of the credit crisis, family offices have focused on private equity and their individual stock portfolios. The pendulum may be swinging back to hedge funds as investors look to buffer their portfolios from the impact of inflation and potentially higher interest rates.”

“Family offices are contacting us on an almost daily basis seeking hedge fund investment opportunities. These investors view it as an attractive asset class that presents a timely and compelling opportunity,” Schneider said.

Private Aviation Continues to Take Off – Literally!

Family Office Networks continues to expand its private aviation platform to assist family offices who seek access to private jet travel for medical, security, and risk reasons as well as pure convenience.

“We’re in constant contact with every one of the private carriers and are dedicated to our members’ overall health and welfare by putting them at the front of the line when flight segments require fast access and response. Because we have worked with these jet companies year-round for many years, we’re uniquely positioned as a preferred and trusted resource,” said Schneider. “In addition to matching family office fliers with the best carrier for their individual needs, Family Office Networks is also helping family offices help each other by matching members who have their own planes available to lease out.”

Entertainment & Media are Hot Asset Classes

While the industry initially experienced a slowdown during the early pandemic shutdowns, independent films are now undergoing a major resurgence as stay-at-home viewers demand content. As evidence of the industry’s burgeoning popularity and pandemic-era business shift, Creative Artists Agency announced this week that it will acquire ICM Partners in a major consolidation deal, as reported by outlets ranging from the New York Times to Hollywood Reporter.

Stanulis Films, which is working with Family Office Networks, to bring investments to family offices, is an example of a new, cost-effective film and television production model for the Covid 19 and digital-driven age with multi-channel distribution – in one company – by an award-winning producer/director. The company has created a budget-driven process with minimal overhead that has been proven and has distribution in place before any costs are incurred. It’s supported by multiple revenue streams from theatrical to on-demand to digital and foreign distribution and big box stores for DVDs.

Psychedelics Attract Increased Investor Interest

Fueled by our nation’s mental health crisis and mounting concerns about regulation and Big Pharma, family offices are keen to invest in the psychedelics sector. According to a recent article in Fortune Magazine, “Despite being an industry in its early stages, the potential for psychedelic health care is growing, with the market projected to reach $10.75 billion by 2027.”

Fortune further reported that public opinion toward psychedelic health care is supportive and demand for these treatments will increase as the benefits become more well-known in the mainstream. According to a YouGov survey, 59% of people said they would consider psilocybin-assisted therapy for themselves if they had a condition where there was strong evidence it could be effective. Respondents had limited confidence in antidepressants and talk therapy to treat depression. As psychedelics begin to break into the mainstream, we can look to the emergence and growth of the cannabis industry as a glimpse of what is to come.