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18
INSTITUTIONAL INTEREST.

Family offices, high-net-worth investors, institutions, banks, and funds of funds are the main investor categories. Around the globe, the percentage sizes of the institutional and fund of funds categories are relatively constant at 25 percent and 14 percent respectively.

Distinct differences exist between family offices/high-net-worth investors and banks in the United States versus those outside the United States. Outside the United States, on a percentage basis, banks are a bigger allocator than in the United States. Individual investors are more active in the United States than abroad. Endowments and pensions are also more active in the United States than elsewhere. (See Table 18.1.)

Each investor category has its own particular needs and objectives regarding hedge funds. Geographic location also has implications.

FAMILY OFFICES/HIGH-NET-WORTH INVESTORS

Family offices are a growing phenomenon as very wealthy families set up offices to run their investment portfolios. In some cases it may be run by a family member, while in others it is run by outside professionals. Or it can be a combination of the two. The number of professionals varies widely. For example, the Rockefeller family office in New York has over 140 in staff, including managers, analysts, trust officers,