Wealthy families are increasingly turning to family offices as a tool to manage generational wealth; now they are changing the way family offices invest. Once relying heavily on external managers, a recent Citi Private Bank Family Office Report from Citi Private Bank found that roughly 70% of family offices now participate in direct private deals, either acquiring companies outright or as a partner to, and not a client of, more traditional investment firms. 

While the upsides are clear—more control and no more private equity fees eating into profits—this also means that family offices are assuming more of the risk from inadequate due diligence.