Private Investing: Duration, Scale, and Opportunity for Multi-Family Offices
In this episode of Focus On, Alice Burley, Managing Director of the Private Client Group, and Lane MacDonald, Chief Investment Officer at SCS, explore why Multi-Family Offices (MFOs) are well positioned to thrive in private equity investing. From managing market cycles with alternatives to fostering trust through transparent fee structures—and becoming the go-to partner for high-quality managers—they share valuable insights into how MFOs can create lasting value for the families they serve.
Harnessing Duration Through Private Equity
One of the most compelling advantages in today’s markets is duration, and multi-family office clients are well placed to capitalize on it. By embracing illiquid asset classes like private equity, MFOs help families maximize duration and open long-term opportunities.
As Lane discussed, “Through the multifamily office construct, I think you can really leverage that duration advantage. Many single-family offices do not have that capability, but I believe you eliminate some of the personal bias and emotional aspects that come with single-family offices, and certainly some of the legacy challenges that exist in endowments. Multi-family offices, I believe, are uniquely positioned to execute on that, leveraging that duration to their advantage.”
Scale amplifies this benefit. Pooling capital across multiple families allows MFOs to employ specialized teams focused on sourcing, diligencing, and monitoring top managers. At SCS, for instance, there are ten professionals who are dedicated exclusively to these efforts, offering both depth and breadth of knowledge.
A robust network of relationships with General Partners (GPs), Limited Partners (LPs), Sovereign Wealth Funds (SWFs), and Single-Family Offices (SFOs) further sets MFOs apart. Few SFOs can match this scale, which enables MFOs to become significant investors to GPs—opening doors to established managers, better information, co-investment opportunities, and stronger partnerships.
Evaluating Risk and Return Across Cycles
Private equity also offers resilience during volatile markets. As Lane explained, “These investments are marked on a quarterly basis. There are a couple of benefits to that. Number one, it eliminates emotion from decision making. With those marks on a quarterly basis, there is not seemingly as much volatility in those portfolios. It prevents people from making irrational, immediate, or emotional decisions.”
The long-term nature of private equity positions investors for potential outperformance across cycles. Historically, private equity has tended to outpace public equity over extended periods.
“The performance through cycles—whether it was the 1999-2000 dot-com bubble, the global financial crisis, or COVID—private equity has consistently outperformed public equities over any meaningful period of time, meaning a ten-year cycle,” Lane shared. “That is where you end up having the benefit to think longer term and execute during periods of turmoil, playing the long game to generate performance.”
Seeking Alpha Through Alternatives
Building on duration and scale, MFOs also leverage alternative investments to enhance portfolio returns. Lane emphasized that public equities and fixed income now offer limited performance dispersion, making alpha generation challenging.
“Those markets have become very efficient, so they are not areas where you are likely to find or pursue a lot of alpha opportunities,” said Lane. “Where there is dispersion and meaningful alpha is on the alternative side, particularly private markets.”
He continued, “That is where we encourage our clients and where I have always, throughout my career, leaned in to find that alpha and outperformance in markets like private equity, natural resources, and real estate. The whole objective in using alternatives and reaching into privates is to outperform net of fees, net of carry, and net of taxes over long periods. That compounding is really powerful and can only be captured completely when you include alternatives, specifically privates.”
With longer holding periods and tolerance for illiquidity, MFO clients are well positioned to generate attractive risk-adjusted, tax-efficient returns over time—complementing traditional 60/40 or 70/30 portfolios.
Building Trust Through Alignment
Trust and alignment are essential for enduring family partnerships. Alice explained how SCS’ fee model reinforces these principles:
“Our fee structure is aligned and has to be aligned with our clients’ interests,” said Alice. “We do well when they do well. Transparency and simplicity are paramount when building trust with families.”
For families new to illiquidity, it is particularly important to feel confident in the recommendations provided. Removing that uncertainty allows SCS and its clients to focus on what matters most: understanding each family member’s needs and representing the family’s long-term objectives, including their goals, values, and interests.
Earning the Role of Long-Term Partner of Choice
Relationships with General Partners (GPs) can deliver significant value when backed by scale and skill. As Lane noted, building those relationships requires more than just capital: “Anyone can be an investor, all you need is money. The challenge is if you want to be a great investor, it takes so much more than that.”
Standing out requires years of effort and a strong reputation. Once established, these relationships become invaluable—optimizing GP partnerships and securing early access to opportunities.
“That’s critical for what we look for in managers and what we try to bring from an allocator perspective,” said Lane. “Scale is incredibly important so that you can optimize the relationship with the GP, write a meaningful enough check to be the first call on co-investments, be the early call in terms of access to information, and serve on the limited partner advisory committee. The key is having enough scale to matter, but not so much that you cannot do the really interesting, nimble, niche things.”
Deep experience is also important for developing strong investment judgments, which comes from time, skill, and exposure to multiple market cycles. With a dedicated team of ten professionals focused exclusively on private equity, SCS has developed the knowledge and insights needed to build meaningful, differentiated relationships with established GPs. “It’s not just about being an investor, it’s about being a value-add investor,” said Lane. “When you ask a general partner, who are your best LPs? We want to be their best LP.”
Just as Sequoia Capital earned its reputation as a premier venture firm, SCS seeks to acquire a similar position as a limited partner—receiving first and last calls from competitive GPs across venture, growth equity, and buyouts.
Opening Doors to Private Market Opportunities
As Lane shared, private investing isn’t just an asset class—it’s a long-term strategy that multi-family offices are well positioned to lead. At SCS Financial, the team provides families access to sophisticated private market opportunities through a platform built on trust, alignment, and enduring partnerships that span generations.
Recent Insights
IMPORTANT DISCLOSURES
The views expressed in this document, and the description of data supporting these views, are those of SCS Financial Services (together with its affiliates, “SCS”). The materials contained herein do not constitute an offer to sell or a solicitation of an offer to buy any security. Any such offering or solicitation can be made only by means of delivery of a definitive Confidential Private Placement Memorandum (“Offering Memorandum”) which sets forth in detail the terms and conditions of the offering and the applicable risk factors and should be reviewed in its entirety prior to investing. Securities may not be offered, sold or delivered to any prospective investor who does not satisfy certain minimum financial and sophistication criteria, or in any jurisdiction in which such offer is not authorized. SCS does not provide tax, accounting or legal advice and prospective investors should consult their professional advisers as to the tax or legal consequences of any potential investment.
The information in this document is as of the date indicated and is subject to change without notice. In preparing this document, SCS has relied upon certain information provided by third parties without independent verification of the accuracy or completeness of such information and SCS accepts no liability for any direct or consequential losses arising from its use.
Forward Looking Statements
Certain statements contained in this document may be forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements that reference past trends or activities should not be taken as a representation that such trends or activities will necessarily continue in the future. Any economic or market forecast presented herein reflects the judgment of SCS as of the date of this material and is subject to change.
Risks
All investments risk loss of capital and there is no guarantee that an investment will achieve its investment objective. Private Fund investments in particular involve significant risks and are intended for experienced and sophisticated investors. Some of the risks associated with an investment in Private Funds include: (i) use of leverage or other speculative investment practices, (ii) illiquidity of investments including restrictions on transfers, (iii) potential multiple layers of fees and expenses, and (iv) lack of comprehensive regulatory regime. For a complete description of the risks associated with such investments please review the “Risk Factors” and “Conflicts of Interest” sections in the relevant Offering Memorandum.
Performance and Fees
Performance for the most recent time period presented may be based on estimated returns and is subject to change. Performance of individually managed accounts will vary based on constraints, timing, funding levels and other factors and may be lower or higher than any performance shown herein. Past performance is not a guide to future results.
Raising Financially Responsible Kids: A Lifelong Conversation
Artificial Intelligence: A Defining Moment for Innovation and Investment
Closing Out 2025: Strategies for Gifting, Giving, and Family Engagement
Nicole Jackson Leslie Joins SCS Financial as Head of Wealth Strategy
The Hidden Costs of Comfort