Stocks and real-estate face the end of a nearly 20-year bull run and many family investors are poorly prepared for the "tough times ahead," said Candice Beaumont, chairman of the Salsano Group family office.
Beaumont, who oversees more than $1.5 billion in assets from Miami, said surging interest rates are setting the stage for a prolonged correction in stocks, office real-estate and sectors of private equity.
Like many family offices, Beaumont said she is holding "significant" amounts of cash to prepare for possible distressed sales — especially in real-estate.
Family offices, like many large investors, are struggling to navigate the new financial landscape of higher interest rates.
That's the best example of why family offices need diversification."