Ultra High Net Worth investors have increasingly become more influential leaders in the global asset management industry, leveraging a more sizeable base of assets under management to participate in more complex transactions, all while broadening their global reach.
In an effort to better understand this growth opportunity, we recently engaged with around 50 CIOs from leading Ultra High
Net Worth family offices with whom KKR does business. Most families with whom we spoke are also led by self-made entrepreneurs, which dovetails closely with the way founders Henry R. Kravis and George R. Roberts have been building KKR for the last forty five years. Their investment profiles also mesh well with KKR and its balance sheet heavy strategy, given the Ultra HNW’s focus on capital appreciation as well as their commitment to a long-term investment horizon via private investments. While underlying fundamentals are robust in this sector of the market, many CIOs are looking to further refine their business models. In particular, many executives are still searching for ways to bolster their asset allocation platforms, including broader diversification, better performance measurement, and improved sourcing. As we look ahead, we think the ‘wisdom’ of these initiatives – coupled with the long-term nature of their capital bases – will serve them well in the macroeconomic environment we now envision.
Henry H. McVey
Head of Global Macro & Asset Allocation KKR GLOBAL
