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Success is measured not by short-term reactions but by resilience and consistency, ensuring wealth endures across generations. In this article, we explore how building a structured long-term investment strategy, rooted in discipline, diversification, and access to opportunities, can withstand volatility and help preserve and grow wealth across generations.

To lay the foundation for a resilient long-term investment strategy, it's essential to focus on key principles that guide decisions, shape goals, and provide stability through market cycles. Here are the core elements to consider:

Effective investment strategies begin with well-defined financial objectives. Whether the goal is preserving wealth, maintaining liquidity, or preparing for future generations, clarity of purpose shapes the investment horizon and informs every decision.

At The Family Office, goal-based planning forms the foundation of portfolio construction, ensuring that every investment aligns with both personal and family objectives.

Diversification is essential to managing concentration risk and reducing vulnerability to market fluctuations. By spreading investments across asset classes and geographies, investors can mitigate potential downturns in any single market.

Including private markets in a portfolio, such as private equity, private credit, and real estate, adds another layer of diversification, as they enhance resilience and returns, often behaving differently from public markets and offering opportunities that complement traditional investments. The resilience of private markets was evident in 2022, for instance, when despite a slowing global economy, high inflation, and increased uncertainty, they fell by just 3.5%, while

global equities saw a double-digit decline, with sell-offs affecting both developed and emerging markets. 

Private markets are also evolving rapidly, with private capital poised for growth and forecasts suggesting continued expansion into the next decade.

The Family Office provides access to carefully curated opportunities in private markets, often unavailable to individual investors, enhancing portfolio resilience and potential for long-term growth.

Emotional decision-making can erode long-term performance, and reactionary shifts during market volatility often undermine well-constructed strategies. Maintaining discipline through cycles is critical, and The Family Office plays a pivotal role in providing guidance and conviction, helping clients remain steadfast during periods of uncertainty. This disciplined approach ensures that long-term objectives remain the central focus, regardless of short-term market disruptions.

Wealth strategies achieve greater success when the family shares a unified vision. Engaging family members fosters accountability and prepares the next generation for responsible stewardship of wealth.

The Family Office supports this process by establishing structures that reflect the family’s long-term goals, promoting alignment across generations, and fostering the preservation and thoughtful management of wealth over time.

Even the most seasoned investors benefit from professional insights, global access, and structured frameworks.

Acting as a long-term partner, The Family Office delivers personalized strategies, access to private market opportunities, and continuity that spans generations. This partnership reinforces disciplined decision-making and provides the expertise necessary to navigate complex financial landscapes.

Long-term investment success is grounded in resilience, foresight, and disciplined execution. By combining clear objectives, diversification, family alignment, and professional partnership, investors can build strategies capable of enduring beyond market cycles. The Family Office guides clients in building such strategies, ensuring wealth not only grows but also stands the test of time.

Building Wealth That Lasts: A Structured Approach to Long-Term Investing

The Family Office, a leading wealth management firm in the GCC, announces the launch of the Financial Goal mobile application, now available on App Store and Google Play. This marks the latest milestone in the firm’s ongoing efforts to simplify the investment journey for clients and broaden access to tailored private market opportunities through intuitive digital solutions.

The Financial Goal app enables users to define and track mid- and long-term financial goals, such as retirement, children’s education, or legacy planning, while simulating different future scenarios and building personalized investment strategies in collaboration with expert advisors.

The launch reflects The Family Office’s commitment to staying one step ahead, providing investors across the region with tools that combine ease of use, institutional-grade investment access, and long-term strategic thinking.

Abdulmohsin Al Omran, Founder and CEO of The Family Office, commented: “At The Family Office, we are committed to continuous innovation that helps our clients navigate complexity with clarity. The launch of the Financial Goal app represents another step forward in making long-term investment planning more accessible, more intuitive, and more aligned with the personal ambitions of our clients.”

begin your personalized wealth planning journey with The Family Office.

The Family Office Company B.S.C. (c) in Bahrain and Dubai, its Riyadh-based wealth manager, The Family Office International Investment Company, and its investment advisory firm in Kuwait, The Family Office Investment Advisory Company (Kuwait) K.S.C. (c) are regulated by the Central Bank of Bahrain, the Dubai Financial Services Authority, the Capital Market Authority of Saudi Arabia, and the Capital Markets Authority of Kuwait. Serving hundreds of families and individuals, the firm helps clients achieve their wealth goals through custom-made investment strategies that cater to their unique needs.

Certain services and products offered by The Family Office may not be available to investors in certain jurisdictions where they reside. Investors are responsible for ensuring compliance with local laws and regulations before accessing our products.

The Family Office Company B.S.C. (c) is a Category 1 Investment Firm regulated by the Central Bank of Bahrain, C.R. No. 53871 dated 21/6/2004. Paid Up Capital: US$10,000,000. The Family Office Company B.S.C. (c) only offers products and services to ‘accredited investors’ as defined by the Central Bank of Bahrain.

The Family Office International Investment is a joint stock closed company owned by one person. Paid-up capital SR20 million. CR No. 101060698, Unified National Number 7007701696. Licensed by the Capital Market Authority (no. 17-182-30) to carry out arranging, advisory and managing investments and operating funds, with respect to securities.

The Family Office Company B.S.C. (c) (DIFC Branch) is a recognized company in the Dubai International Financial Centre (DIFC) under registration number 6567 and regulated by the Dubai Financial Services Authority (DFSA) as a Category 4 licensee to carry out Arranging and Advising Services. The Family Office Company B.S.C. (c) (DIFC Branch) is not permitted to deal with Retail Clients (as defined in DFSA’s Conduct of Business Module).

The Family Office Investment Advisory Company (Kuwait) K.S.C. (c), incorporated in 2024, is regulated by the Capital Markets Authority, State of Kuwait and authorized to conduct Investment Advisory and Subscription Agent (license no. AP/2024/0009). Paid-up capital KWD 1,000,000, CR no. 511443.

The Family Office Launches Financial Goal Mobile App: A New Milestone in Digital Wealth Planning

Private markets, by contrast, offer a different proposition. The potential outcomes are far more dispersed: while the top funds often generate net IRRs above 20%, the lowest performers may struggle to return capital.

 That wide range is not a drawback; it creates the opportunity for higher returns, provided investors have access to skilled managers.

This distinction is critical. In public markets, success comes from being invested. In private markets, success comes from partnering with skilled managers who know how to source opportunities, add value, and protect capital. When combined thoughtfully, public markets can provide liquidity, while private markets can drive diversification and long-term outperformance.

Together, both markets benefit from strong manager oversight, ensuring investors gain not only performance but also a comprehensive, disciplined view of their overall wealth.

Return Dispersion: The Wide Plateau of Opportunity

In public markets, most funds deliver returns that cluster tightly around the benchmark, like a narrow mountain peak. In private equity, however, return patterns show much greater variation: investors may experience deep underperformance or dramatic outperformance. This is why private markets are fundamentally about alpha (returns created by manager expertise) rather than beta (the market’s average return).

The numbers illustrate this clearly. Among buyout funds, the gap between the top and bottom quartiles averages around 14 percentage points in annual IRR. In venture and growth equity, the spread is even wider at roughly 18 percentage points. For venture capital specifically, the median IRR is only about 8%, but the best funds can deliver anywhere from 17% to nearly 80%, while the weakest may lose money altogether.

Over a decade, this level of dispersion compounds dramatically. The right partner can turn private markets into a powerful driver of wealth creation, while the wrong one can erode both opportunity and capital.

In private markets, not all managers deliver the same results. The best are not simply buying assets; they are building long-term value. Similarly, in liquid strategies, the role of the fund manager remains critical in asset selection, risk management, and discipline. What sets them apart is not luck, but discipline and expertise:

This combination of access, discipline, and value creation helps explain why some managers consistently outperform the average.

The principle holds across markets: in private markets, outperformance depends on alpha generation, while in liquid funds, discipline and risk management by the manager provide stability and context.

Private markets do carry risks, but these are amplified when the wrong partner is chosen, particularly in traditional closed-ended investments. Investors should be aware of three common pitfalls:

Data underscores this reality. A study of over 6,000 private funds (1980–2022) found that the top 95th percentile TVPI (Total Value to Paid-In Capital) was around 4.24× in venture capital and 2.08× in private credit, while the bottom 5th percentile fell as low as 0.36× and 0.81× — in some cases failing to return the original investment.

This range is why investors must view the manager, not just the asset, as the true investment decision. With the right partner, the J-curve is temporary. With the wrong one, it becomes permanent.

Private markets are ultimately about people. Behind every fund are professionals whose judgment, networks, and discipline determine the outcome. Unlike in public markets, there is no index to guarantee the average return. The “alpha” of private markets is created by the skill of the manager.

For long-term investors, this reinforces a central point: private markets reward selectivity. The critical question is not 

 will be responsible for your capital over the next decade.

Private markets have the potential to deliver results not typically available in public markets, but only if investors have the right partner. Manager selection is therefore not a detail; it is the decision that shapes long-term results. This applies equally to public markets, where selecting the right liquid fund managers can also impact outcomes, though the dispersion is narrower. Together, both public and private strategies form a complementary framework for building resilient portfolios.

Ultimately, working with skilled managers across both domains provides investors with a comprehensive lens to navigate risk, capture opportunity, and sustain long-term growth.

For more than 20 years, The Family Office has specialized in identifying and working with top-tier private market managers worldwide. Our investment approach is built on rigorous due diligence, deep regional expertise, and strong global relationships that give our clients access to opportunities once reserved for institutions.

Today, this expertise is available through our digital ecosystem, where investors can define their goals, explore tailored strategies, and track progress with full transparency. By combining human judgment with technology, we make the process of selecting and monitoring private market managers clear and structured.

The Rise of Private Debt: A New Era for Capital Markets and Portfolios

Wednesday, November 8, 2023

4:00 pm (GMT+3)

Language: English

Shahab Rashid discusses the rise of private debt, marking a new era for capital markets and portfolios, including:

Speaker

Shahab Rashid

Moderator

Naji Nehme, CFA

Register Now

Keep watching

Building Wealth That Lasts: A Structured Approach to Long-Term Investing

The Family Office Launches Financial Goal Mobile App: A New Milestone in Digital Wealth Planning

Why Your Most Critical Investment in Private Markets Isn’t an Asset, It’s a Partner