German mid-market buyout firm Finatem has raised €120m ($174m) for its latest fund, thanks to larger allocations from family offices at a time when institutional investors remain wary of committing money to private equity.

Finatem raised 30% of its third fund from local family offices with an industrial background, according to a spokesman. That compares with just 7% of its second fund that came from family offices, and none of its first fund, according to the firm's website.