The focus on risk management and confidentiality is key, especially given the growing need for discretion in today's market. While the trend isn’t new, it’s evolving as more family offices are leveraging their balance sheets for the right opportunities. Great insights by Shaun Parkin
Family Office Balance Sheet Lending. One of the biggest Family Office use cases for private banks is to borrow against assets. But when those assets are unique and potentially difficult to price and sell, you start to see a pull back from those with a heavy risk and compliance burden. And that void seems to be attracting family offices with spare cash. In my experience, success in private credit is how well you manage risk. As one CIO of a large family office told me when discussing a potential new credit manager - I need to speak to the person responsible for non performing loans before I will do anything. I am not privy to the specifics of this offering from Terrace Tower Group but it's not a new trend for family offices to offer their balance sheet for the right borrower (and price). Another element they are offering is discretion: “Counterparties don’t want their existing lenders and portfolio companies knowing, they don’t want the market to know, and they don’t want journalists to know. That’s what we pride ourselves on – confidentiality.” For more family office insights, listen to the Family Office Sherpa podcast here:https://lnkd.in/g2tc-Zdd #familyoffice #privatecredit #wealthmanagement #assetmanagement #