Family Office Sector Focus
Family office sector focus is the set of industries a family office prefers to invest in or avoid.
Allocator relevance: A core mandate-fit attribute used to qualify targets and personalize outreach with relevance.
Expanded Definition
Sector focus can be thematic (AI, energy transition) or experience-driven (industries tied to the family’s operating background). Some offices have strict exclusions; others are opportunistic. Sector preferences can vary by strategy—public equities may be diversified while direct deals concentrate in familiar sectors.
Sector focus should be treated as evidence-weighted (confirmed vs inferred) and time-sensitive (last verified) because preferences can shift with leadership, cycles, and portfolio concentration.
How It Works in Practice
Teams filter target lists by sector, review historical investments, and align opportunity framing to the family’s stated priorities. Sector focus also influences diligence depth, as offices may have stronger networks and pattern recognition in familiar industries.
Decision Authority and Governance
Sector posture is often set by the principal/CIO or reinforced by IC policy. Governance changes can create sector pivots (e.g., next-gen pushing new themes).
Common Misconceptions
- Sector focus equals current holdings.
- Sector focus is stable forever.
- “Generalist” means no sector preferences.
Key Takeaways
- Treat sector focus as a mandate signal with confidence and recency.
- Use sector focus to personalize with proof, not buzzwords.
- Sector preferences can differ across asset classes.