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Family Offices in Singapore Shift Focus: Direct Investments in Private Companies

Family Offices in Singapore Shift Focus: Direct Investments in Private Companies

  • Modified On: July 21, 2026

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With the mission to deliver higher monetary returns to their clients, family offices in Singapore are shifting their focus and investment strategies. A large number of family offices are opting to invest directly in private companies rather than through traditional channels. This shift marks a significant trend in investment tactics, driven by their unique competencies and the objective to grow long-term capital. The success of a single family office in Singapore defines its popularity among wealthy families and individuals.

The Rise of Direct Investments

A survey reveals that as much as 62% of family offices have made at least six direct investments in private companies last year. This approach involves purchasing stakes in companies or providing direct lending, bypassing traditional investment vehicles.

In 2024, 71% of family offices have decided to increase their direct investments or maintain their existing levels. This trend explains the role of family offices in private markets. These organizations have been potentially reshaping the dynamics of private equity, besides fostering innovation in investment strategies. [cnbc]

Benefits and Challenges

Direct investments allow family offices to leverage their entrepreneurial expertise and management skills that they gained while running private companies. As they invest in a long-term horizon that traditional financial institutions often fail to match, they offer patient capital. However, direct investments pose challenges like specialization in the industry and carrying out thorough due diligence. This explains why many family offices are turning to wealth management firms and investment consultants like the IMC Group for expertise. With professional assistance, they can manage potential investments and mitigate risks.

Structuring Direct Investments the Right Way

Family offices moving into direct deals need due diligence, entity structuring, and risk mitigation support to protect long-term capital.
Talk to an Advisor

Illustrative Example: How Direct Investment Diligence Plays Out

A Singapore-based single-family office identifies a growth-stage regional logistics company seeking a minority equity stake. The family has operating experience in supply chain businesses and sees an entrepreneurial fit. Before committing capital, the office needs to verify the target’s financial statements, assess management’s governance practices, confirm regulatory standing across the jurisdictions it operates in, and structure the holding entity to align with the family’s succession and tax planning goals. Each of these steps sits outside the family office’s day-to-day expertise, which is where a due diligence service partner and a private company services advisor typically get engaged, one to validate the target before commitment, the other to structure and administer the holding once the deal closes.

Risks Family Offices Should Watch For

Risk Area What Can Go Wrong
Due diligence gaps Limited in-house resources can lead to under-scrutinised financials, legal exposure, or governance red flags at the target company
Concentration risk Direct stakes are typically larger and less liquid than fund positions, so a single bad investment carries outsized portfolio impact
Illiquidity Private company stakes cannot be exited quickly if the family’s liquidity needs change
Governance and control Minority stakes may leave the family office with limited influence over major company decisions
Cross-border complexity Singapore-based family offices investing into regional targets face varying regulatory, tax, and reporting requirements across jurisdictions
Succession misalignment Direct holdings need to be structured with the next generation and long-term wealth transfer plans in mind, not just short-term returns
Working with an experienced due diligence and private company services partner helps family offices manage these risks without slowing down deal execution.

Co-investing and Strategic Partnerships

Family offices are increasingly co-investing alongside traditional private equity firms. This is a collaborative approach that reduces fees and enhances the potential for higher returns by sharing interests and diversifying portfolios.

Direct investments in private companies capture the illiquidity premium. This strategy falls in line with the long-term wealth preservation goals of family offices, thereby ensuring stability and sustainability across generations.

As family offices continue to evolve into formidable players in private markets, their strategic investments and partnerships are set to influence the future landscape of global investments.

The IMC Group continues to be a trusted partner for family offices investing. With dedicated assistance from experts, a professional consultation can put the investments in the right avenues.

Considering a direct investment?

Get the due diligence, structuring, and governance support family offices need before committing capital.
Talk to IMC's Family Office Advisory Team

FAQs

Why are family offices in Singapore shifting to direct investments?
Family offices are moving toward direct investments in private companies to gain higher returns, apply their own entrepreneurial and management expertise, and provide patient, long-term capital that traditional financial institutions often cannot match.
What percentage of family offices are making direct investments?
A survey cited in the article found that 62% of family offices made at least six direct investments in private companies in the past year, and 71% planned to increase or maintain their direct investment activity in 2024.
What are the main challenges of direct investing for family offices?
The key challenges are the need for industry-specific specialization and the requirement for thorough due diligence before committing capital, both of which are harder to manage without dedicated in-house expertise.
What is co-investing, and why are family offices using it?
Co-investing means family offices invest alongside traditional private equity firms in the same deal. It reduces fees, shares risk, and improves the potential for higher returns while diversifying the portfolio.
How can IMC help family offices with direct investments?
IMC supports family offices with due diligence, investment structuring, and risk mitigation, helping them evaluate and manage direct investment opportunities professionally.
Author Bio:
Shivani
Shivani Bhakar works with international businesses on company setup, cross-border expansion, and regulatory compliance across different jurisdictions. She helps businesses evaluate incorporation options, understand banking and reporting requirements, and manage the practical considerations involved in entering new markets. With experience in corporate structuring and operational compliance, she supports business leaders in making informed decisions on Singapore shelf company acquisitions, banking readiness, and long-term market entry planning.

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