In a recent article, Forbes reported that directly investing in small and middle-market companies is becoming more appealing to family offices. While many still commit monies to private equity and venture capital funds, there is a strong and growing interest in doing direct deals. While some of these are “club deals,” the majority of direct investment opportunities are brought to family offices through the financial and legal professionals in their networks.

Surveys of family offices indicate that, for the most part, they are doing quite well as investors in small and middle-market companies. Risks and costs considered, the returns from these investments are proving to be superior to many of their other investments.

This perspective was reinforced by a recent survey conducted by ACG New York, the largest association of middle-market deal-making and corporate professionals in New York, with more than 1,000 members across all industry sectors. The findings indicated that family offices are currently seeing a great deal of success in the middle-market.

The Forbes article further notes that small and middle-market companies like the advantages associated with family offices. When combined with the investment success family offices have achieved through private equity makes it clear that direct investing is going to intensify.

Click here to view the article on forbes.com.