Balancing Traditional and Alternative Investments: Family Office Perspectives
Family offices are increasingly diversifying their portfolios, balancing traditional asset classes like equities and fixed income with alternative investments such as private equity, real estate, and venture capital. This trend is driven by the need to achieve long-term growth, reduce portfolio volatility, and align investments with macroeconomic trends and innovation in sectors such as climate technology.
Case Study: BESEN Family Office and Climate Tech Ventures
The Melbourne-based single-family office of Daniel Besen has recently committed to Climate Tech Partners as an anchor investor. Climate Tech Partners is a venture capital fund focused on early-stage investments in energy, transport, logistics, and industrials, with a mission to accelerate decarbonization through innovative software and hardware solutions.
Founded by Patrick Sieb and Tom Kline, Climate Tech Partners leverages the founders’ experience in corporate, startup, and government sectors to attract corporate partners and high-potential investment opportunities. The fund is nearing its first close, with commitments exceeding $35 million of its $45 million target.
After evaluating over 30 potential managers, the BESEN family office chose Climate Tech Partners for its differentiated model that de-risks venture investing by partnering with large corporates to identify demand-driven opportunities. This approach helps accelerate portfolio companies through corporate trials and contracts.
Duncan Murray, CEO of BESEN Family Office, emphasized, “Climate technology is driven by significant macroeconomic factors and aligns well with long-term trends such as energy security and domestic manufacturing.” The partnership with Climate Tech Partners provides the family office with an opportunity to diversify its venture-stage investments and gain exposure to emerging technologies.
Additional BESEN Investments
In addition to its investment in Climate Tech Partners, BESEN Family Office has participated in several other investments. In 2022, BESEN served as the lead investor in the acquisition of the Sydney-based babywear brand Snuggle Hunny Kids, a transaction led by Julie Mathers, founder of Flora & Fauna, in collaboration with Arcus Partners. More recently, in 2024, Arcus Partners acquired a majority stake in Australian AdTech software firm Sesimi on behalf of BESEN.
German Family Office Focus: Reimann Investors
Reimann Investors, a German family office, takes a structured and academically driven approach to capital market investments. The family office’s primary goal is to preserve and increase the family’s wealth over the long term by actively managing a diversified portfolio.
Investment Philosophy and Process
The Reimann approach combines top-down macroeconomic analysis with bottom-up selection strategies. The family office’s Investment Committee regularly makes decisions on asset class allocation based on comprehensive technical and macroeconomic analysis of global markets.
- Top-Down Allocation: The committee determines the overall weighting of asset classes.
- Bottom-Up Selection: Investments within each asset class are selected using quantitatively driven strategies.
- Holistic Risk Management: Risks are managed both at the portfolio and individual investment levels.
What Sets Reimann Investors Apart
The Reimann team is known for combining academic expertise with practical experience. Customized models and tools ensure their process remains adaptable to changing market conditions. Their diversified portfolio includes international equities, bonds, commodities, precious metals, and liquid alternative investments, with targeted use of derivatives to manage risk.
“Our goal is to achieve stable long-term performance while maintaining the flexibility to respond to dynamic market conditions,” explains a Reimann executive. This active approach allows the family office to protect and grow the family’s assets in a rapidly changing global environment.
Conclusion
Balancing traditional and alternative investments is crucial for family offices aiming for long-term success. While BESEN focuses on venture capital and innovative climate technology, Reimann Investors prioritizes a disciplined, research-driven approach to capital markets. Both strategies highlight the importance of diversification, risk management, and alignment with global trends in the family office investment landscape.
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