The Differences Between Direct Investing and Using Managers

The majority of family offices take a hybrid approach where they will use managers for areas where they do not have that core expertise. Something like biotech is super niche and specific and unless you have a team of scientists on your staff you may not be doing that type of investing directly. Most families start direct investing alongside a manager so maybe they invest in a fund and then they do some co-invest with that manager. They really dig in deep and understand what it means to be a direct investor.