Rich Families Cut Back on Buyout Firms in Shift to Direct Deals

Daniel Lubin, whose family wealth comes from a maker of diaper-rash cream built by his grandfather and later acquired by Pfizer Inc., is taking more control of his fortune.

Lubin, 52, chairman of Upsher Asset Management, a so-called single-family office that oversees the assets of his family and three others descended from his grandfather, is shifting capital from outside funds into direct investments. Family offices increased their direct allocations to private companies and real estate last year to an average of 11 percent from 6 percent in 2009, according to a study to be released today by the Wharton Global Family Alliance.