{"id":4522,"date":"2025-07-30T16:54:38","date_gmt":"2025-07-30T09:54:38","guid":{"rendered":"https:\/\/gunungcapital.com\/?p=4522"},"modified":"2025-07-30T16:54:41","modified_gmt":"2025-07-30T09:54:41","slug":"multi-generational-risk-how-family-offices-are-rethinking-liquidity-horizons","status":"publish","type":"post","link":"https:\/\/gunungcapital.com\/zh\/multi-generational-risk-how-family-offices-are-rethinking-liquidity-horizons\/","title":{"rendered":"Multi-Generational Risk: How Family Offices Are Rethinking Liquidity Horizons"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"4522\" class=\"elementor elementor-4522\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bbe111a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bbe111a\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fc02c59\" data-id=\"fc02c59\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0d7c6b4 elementor-widget elementor-widget-text-editor\" data-id=\"0d7c6b4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">In 2025, family offices globally are facing one of the most pivotal transitions in modern wealth management history: the passing of leadership and capital stewardship from founding generations to the next. This shift is not just philosophical, it is reshaping how families invest, manage risk, and design their private market strategies for decades to come.<\/span><\/p><p><span style=\"font-weight: 400;\">At Gunung Capital, we are seeing firsthand how succession planning is influencing asset allocation decisions across Asia and beyond. The demand is rising for greater flexibility, faster liquidity options, and better alignment with long-term family legacies. This is fundamentally altering how families approach private equity, secondaries, and alternatives more broadly.<\/span><\/p><p>\u00a0<\/p><h2><b>The Succession Imperative<\/b><\/h2><p><span style=\"font-weight: 400;\">The<\/span><a href=\"https:\/\/www.ubs.com\/global\/en\/wealthmanagement\/family-office-uhnw\/reports\/global-family-office-report.html\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\"> 2025 UBS Global Family Office Report<\/span><\/a><span style=\"font-weight: 400;\"> offers a telling insight: over 53% of ultra-wealthy families now have a formal estate or succession plan in place, up from 47% just a year ago. While encouraging, this also means that nearly half are still navigating legacy transitions without clear structures, a significant risk when managing multi-generational capital.<\/span><\/p><p><span style=\"font-weight: 400;\">As <\/span><a href=\"https:\/\/www.wsj.com\/finance\/banking\/succession-planning-among-the-super-wealthy-ticks-up-ae33a300?utm\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">The Wall Street Journal<\/span><\/a><span style=\"font-weight: 400;\"> notes, the vast majority of U.S.-based family offices (approximately 75%) continue to serve first-generation wealth creators. These wealth originators often favor long-horizon, illiquid investments such as traditional closed-end private equity. Their successors, however, are calling for change.<\/span><\/p><p>\u00a0<\/p><h2><b>Liquidity and Optionality Over Long Lockups<\/b><\/h2><p><span style=\"font-weight: 400;\">This generational shift in priorities is pushing family offices toward more liquidity-aware strategies including evergreen funds, secondaries, and hybrid structures that combine yield, flexibility, and long-term value creation.<\/span><\/p><p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.mckinsey.com\/industries\/private-capital\/our-insights\/global-private-markets-report\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">McKinsey Global Private Markets Report 2025<\/span><\/a><span style=\"font-weight: 400;\"> shows a pronounced trend: secondaries now deliver the highest median IRRs across private asset classes (vintage years 2012\u20132021), while offering earlier net cash flow, typically within eight years. This liquidity profile is attractive for family offices looking to diversify beyond blind pools and long lockups. Secondaries, particularly GP-led continuation vehicles are also serving as tools to maintain exposure to high-performing assets beyond their original fund term, while giving families the flexibility to partially exit or roll forward.<\/span><\/p><p>\u00a0<\/p><h2><b>The Rise of Evergreen and Semi-Liquid Structures<\/b><\/h2><p><span style=\"font-weight: 400;\">Perhaps the most transformational development in private markets today is the rise of evergreen vehicles, open-ended structures that offer periodic liquidity, smoother capital deployment, and simplified reporting. Once considered a niche innovation, evergreen funds now account for an estimated <\/span><a href=\"https:\/\/www.sganalytics.com\/blog\/evergreen-funds-growth-gaps-and-caution\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">$427 billion AUM<\/span><\/a><span style=\"font-weight: 400;\">, according to Morgan Stanley and PitchBook data published earlier this year.<\/span><\/p><p><span style=\"font-weight: 400;\">Returns in these vehicles are competitive. Over the 12 months ending April 2025:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Evergreen PE strategies delivered a <\/span><b>median return of 10.8%<\/b><span style=\"font-weight: 400;\"> (top decile: ~17%)<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Private credit in evergreen structures yielded <\/span><b>~7.8%<\/b><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Traditional PE closed-end funds returned <\/span><b>~13.8%<\/b><span style=\"font-weight: 400;\">, though with a steeper j-curve<\/span><span style=\"font-weight: 400;\"><br \/><br \/><\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">These evergreen strategies are increasingly built atop secondary portfolios, allowing rapid deployment of capital into seasoned assets, with limited blind pool exposure. As <\/span><a href=\"https:\/\/www.barrons.com\/articles\/wall-street-private-equity-investments-rich-targeted-0f7bc601?\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Barron\u2019s<\/span><\/a><span style=\"font-weight: 400;\"> highlights, such funds are even paying ~4% premiums above market to acquire top-tier secondary stakes, suggesting strong conviction in long-term upside.<\/span><\/p><p>\u00a0<\/p><h2><b>Why Hybrid Models Are the Future<\/b><\/h2><p><span style=\"font-weight: 400;\">At Gunung Capital, we believe the most resilient family office strategies going forward will integrate hybrid allocation models that blend evergreen flexibility with bespoke legacy preservation. This might include:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Anchor positions in evergreen secondaries funds<\/b><span style=\"font-weight: 400;\"> for liquidity and access<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Co-investments or direct stakes<\/b><span style=\"font-weight: 400;\"> in infrastructure or impact projects tied to the family\u2019s mission<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Selective commitments to GP-led continuation funds<\/b><span style=\"font-weight: 400;\">, extending value capture from successful investments<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Private credit and real assets<\/b><span style=\"font-weight: 400;\"> to generate income and preserve capital over generations<\/span><span style=\"font-weight: 400;\"><br \/><br \/><\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">As highlighted in <\/span><a href=\"https:\/\/www.blackrock.com\/corporate\/newsroom\/press-releases\/article\/corporate-one\/press-releases\/blackrock-family-office-survey-2025\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">BlackRock\u2019s 2025 Global Family Office Survey<\/span><\/a><span style=\"font-weight: 400;\">, family portfolios now allocate 42%\u201354% of capital to private markets, with rising demand for private credit, infrastructure, and flexible-duration strategies.<\/span><\/p><p>\u00a0<\/p><h2><b>Closing Thoughts: From Legacy to Liquidity and Back<\/b><\/h2><p><span style=\"font-weight: 400;\">Succession planning today is not just about choosing the next generation of leaders, it is about creating investment frameworks that can withstand generational change. Families must ask: How can we preserve legacy without compromising on liquidity? How do we align our values with our vehicles?<\/span><\/p><p><span style=\"font-weight: 400;\">At Gunung Capital, we are navigating these complex transitions building portfolios that combine purpose, adaptability, and performance across time horizons. As secondaries, evergreen funds, and hybrid alternatives continue to evolve, the tools are now in place for families to craft a capital strategy not just for today but for 2050 and beyond.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>In 2025, family offices globally are facing one of the most pivotal transitions in modern wealth management history: the passing of leadership and capital stewardship from founding generations to the next. This shift is not just philosophical, it is reshaping how families invest, manage risk, and design their private market strategies for decades to come. [&hellip;]<\/p>","protected":false},"author":1,"featured_media":4527,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts\/4522"}],"collection":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/comments?post=4522"}],"version-history":[{"count":9,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts\/4522\/revisions"}],"predecessor-version":[{"id":4532,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts\/4522\/revisions\/4532"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/media\/4527"}],"wp:attachment":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/media?parent=4522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/categories?post=4522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/tags?post=4522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}