Alternative investments for families: private markets, property and collectibles

What counts as an alternative investment for a family?

An alternative investment is any asset outside listed shares, bonds and cash. Families favour them for 3 reasons: access to returns that depend on skill and patience, direct control over a company or a building, and a link to the family’s own expertise. Each of these reasons comes with a trade-off in cost and liquidity.

The word alternative covers very different assets. A private company, an apartment, a painting and a charity-linked fund have different cash flows, different valuation methods and different exits. A family office therefore treats each asset on its own terms, with a role and a limit inside the policy.

Where does private equity fit in a family’s alternatives?

Private equity means owning part of an unlisted company, directly or through a fund. Families reach it by 2 routes: a fund run by a manager, or a direct stake alongside other investors. The fund route spreads risk across companies, while the direct route gives control and needs more skill and time.

The page on private equity and co-investing for families compares the 2 routes on fees, control, effort and exit. It also explains how co-investment sits between them, with the family joining a deal that a manager has already selected. Capital stays locked for years, so the cash schedule must show it first.

What role does real estate play among family alternatives?

Real estate gives income, a physical asset and a hedge that families understand. It also concentrates risk in one place, needs maintenance and takes months to sell. Asian families often own property in several cities, and each one adds its own taxes, rules and currency. Rental income can support the spending pool when leases are secure.

The page on real estate in a family office covers its role in the portfolio, the risks of leverage and vacancy, and the liquidity of a building compared with a fund. It helps the office decide whether property belongs in the growth pool, the income pool or the legacy pool.

How do art and collectibles differ from other alternatives?

Art and collectibles bring enjoyment and cultural value, with prices that depend on taste, provenance and condition. Their return comes from price alone, they cost money to store and insure, and they sell through auctions or dealers that charge commission. Valuation comes from appraisals, since no daily market price exists.

The page on art and collectibles in family wealth explains valuation, storage and exit, and how to keep an inventory the next generation can read. Many offices keep this sleeve small and treat part of its value as personal, because family members also use the objects.

How much venture and startup exposure suits a family?

Venture investing backs young companies. Outcomes vary widely: some companies fail, and a few create most of the gains, after many years. Families that invest need patience, a spread across many companies and a small share of total wealth, so that a string of losses stays within what the family plans for.

The page on venture and startup investing for families covers sizing and patience: how many companies to back, how much to commit per year and how to reserve funds for follow-on rounds. A written cap keeps enthusiasm for a founder friend inside the limits of the policy.

Can impact investing sit inside a family’s alternatives sleeve?

Impact investing seeks a measurable social or environmental result alongside a financial one. Families use it to express values, to engage the next generation and to support causes in the region. The financial terms differ widely, from market-rate funds to concessional loans, so the policy states what the family accepts. Reports to family members then show both the financial and the impact result.

The page on impact investing for families shows how to align capital with family values, define the result to measure and report it year after year. A clear definition turns impact from a label into a result that the family can verify.

How do illiquidity and fees shape alternatives for a family?

Illiquidity means the family cannot sell quickly at a fair price. Funds lock capital for years, capital calls arrive on dates chosen by the manager, and exits depend on buyers. The family office plans for this with a schedule of expected calls and distributions, and keeps liquid reserves to meet them.

Fees deserve equal attention. Management fees, performance fees, entity costs and advisory fees reduce what reaches the family. The office compares net returns after all costs, and checks that valuations come from an independent source. The same checks apply to every manager, whatever the asset.

How should a family office size its private markets sleeve?

Sizing starts from liquidity, not from appetite. The office adds up spending needs, taxes and expected capital calls over the next years, then sets the alternatives share so that these needs are met without forced sales. A policy often states a target and a ceiling, and a new commitment must fit under the ceiling.

Commitments are spread across several years so that calls stay evenly distributed, and the sleeve is reviewed each year. Families that want a second view on sizing can book the 30-minute pre-diagnostic with EQOS Asia. This page is general information, not legal, tax or investment advice.

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About the author

Stéphane Jambu

President, EQOS Forecast Asia

Stéphane Jambu leads EQOS Forecast Asia and works as a consultant in e-commerce, search visibility, and AI. LinkedIn profile