Family Office Sector Focus
Sector focus describes the industries a family office prefers to invest in—or avoids—based on conviction, exposure, or reputation.
Definition
Definition Sector focus indicates recurring themes in a family’s allocations: technology, healthcare, energy, real estate, consumer, industrials, etc. It can also include explicit exclusions. Sector focus is often shaped by wealth source—families commonly have deep conviction in what they know, and also avoid what feels correlated or reputationally sensitive. Allocator Context Families may already be heavily exposed to one sector through their operating business, making additional exposure undesirable. Others intentionally invest in adjacent sectors where they can provide value through network and expertise. Sector focus is therefore both a preference and a risk management mechanism. Decision Authority CIO typically manages sector exposures, but principal preferences and reputational constraints can set hard boundaries. Why It Matters for Fundraising Sector fit is one of the cleanest ways to increase relevance. If your strategy overlaps with the family’s existing concentration, you need to position as diversifying or risk-controlled—or accept it’s not a fit. Key Takeaways Often driven by wealth source and lived expertise Can be a preference or a hard restriction Correlation to existing holdings matters Strong sector fit improves conversion and retention