Concentration in these sectors reflects where our knowledge is deepest and our ability to separate credible opportunities from well-presented speculation is most reliable.
European family with €180 million in liquid assets, of which 72% was concentrated in European equities through operating stakes and listed positions in the technology and industrial sectors.
Returns had been strong over the prior 5 years (annualised 11.3%), but the portfolio lacked resilience to sector-specific shocks or regional downturns. Equity correlation across holdings exceeded 0.78, and the family had minimal exposure to strategies that could perform in declining markets.
The Malin Family Office team reviewed existing exposures and defined the role that hedge fund strategies should play within the broader portfolio (target allocation: 8-10% of liquid assets). We evaluated managers whose methods were transparent and whose liquidity terms were acceptable. The mandate was to reduce concentration risk without abandoning equity orientation entirely. We screened fourteen long-short equity managers and conducted detailed due diligence on four finalists.
The family committed €14 million (approximately 8% of liquid assets) to a European long-short equity manager whose process emphasised downside protection through active shorting and sector rotation. The fund had a net exposure range of 30-60% and quarterly redemption terms with 60 days' notice. Portfolio correlation to the family's existing equity holdings measured 0.31, meaningfully improving diversification.
Family office managing €220 million across public and private assets, seeking to increase private equity allocation from 12% to 22% of total portfolio over a three-year period.
The client sought private equity exposure in Northern Europe but lacked the network to evaluate sponsors directly. Previous commitments had been made through intermediaries, with mixed results (average net IRR of 9.2% vs. mid-market European PE benchmark of 13-15%) and opaque fee structures.
We screened eighteen European mid-market sponsors, focusing on sector alignment (digital infrastructure, technology-enabled services), team stability (average partner tenure over 8 years), and track record consistency (DPI above 1.2x across prior three funds). We also negotiated fee reductions (management fee stepped down from 2.0% to 1.75% after the investment period) and helped the client calibrate commitment size (€18 million initial commitment) relative to overall portfolio liquidity and expected capital call pacing.
The client committed €18 million to a Northern European mid-market fund (€420 million fund size, targeting enterprise values of €75-250 million) focused on digital infrastructure and B2B software. The sponsor's previous fund had delivered a gross IRR of 16.8% and net multiple of 2.1x. Fee transparency improved, with quarterly reporting on underlying portfolio company performance and annual third-party valuations.
Client profile: Family with €160 million concentrated in European assets (85% Europe, 12% Asia, 3% US), seeking to rebalance to 65% Europe / 25% US / 10% Asia over 24 months.
The family wanted to expand geographically but was concerned about currency risk, as euro-denominated wealth would face dollar volatility. Regulatory differences between UCITS and US fund structures added complexity, and prior attempts to invest in US opportunities through European intermediaries had resulted in high fees and limited transparency.
We built a phased allocation plan covering US manager selection, sector relevance (financial services, power infrastructure) and expected liquidity profile. We addressed currency hedging (50% hedged for equity allocations, unhedged for dollar-denominated credit), tax efficiency (US withholding tax mitigation through treaty structures), and how new commitments would interact with existing European holdings. The plan included both public market allocations (US equity managers, infrastructure debt) and private opportunities (two co-investment commitments totalling $12 million).
Over 18 months, the family deployed €38 million into US exposures: €22 million through two US-focused public market managers (one large-cap value equity strategy, one infrastructure debt fund with 5.8% target yield), and $12 million across two private co-investments in financial services (specialty insurance platform) and renewable power infrastructure. US allocation increased from 3% to 21% of total portfolio, with a currency hedge ratio of 55%. Geographic diversification reduced overall portfolio volatility by an estimated 140 basis points.
All case studies are illustrative. Portfolio figures and manager details have been anonymised or modified to protect client confidentiality. Past engagements and historical returns do not predict future results.
