Strategies for the Family Office Contemplating Direct Investments

12/31/24 • 22 min

This McGuireWoods article advises single-family offices (SFOs) considering direct private equity-style investments. It emphasizes five key strategies: partnering with experienced independent sponsors to access deal flow; prioritizing deal sourcing and adhering to investment criteria; considering co-investing with experienced partners to learn and mitigate risk; leveraging existing industry knowledge; and hiring expert advisors across various fields for due diligence and beyond.
The article highlights the challenges and complexities of direct investing for SFOs and offers practical solutions to navigate these hurdles successfully. It features advice from several industry professionals.
Explore that full report here:
https://www.mcguirewoods.com/client-resources/alerts/2019/8/strategies-family-office-contemplating-direct-investments/
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Intro Music Artist: DJ Freedem | Track: Pretty Boy

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Are Family Offices Different from Other Buyers of Middle Market Companies?

This article from Generational Equity discusses the increasing importance of family offices as buyers of middle-market companies. Family offices differ from other buyers due to their longer investment horizons and their active involvement in portfolio companies. Unlike private equity firms, family offices often seek to hold investments indefinitely and contribute operational expertise.
However, access to suitable deals can be challenging for family offices, a problem Generational Equity aims to solve with its extensive network of buyers. The article highlights Generational Equity's services in connecting business owners with suitable family office buyers.
See the full report here:
https://www.generational.com/insights/are-family-offices-different-from-other-buyers-of-middle-market-companies/
DISCLAIMER: The BizNexus Roundup podcast features AI hosts whose analysis is based entirely on pattern recognition and reports created by actual human experts. While our hosts can process vast amounts of data, they've never actually closed a deal or sat in a boardroom.

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Next Episode

Seven Ways Family Offices are Different from Other Buyers of Lower Middle Market Companies

This article from Akoya Capital discusses seven key differences between family offices and other investors in lower middle-market companies. Family offices possess a longer-term investment horizon, often stemming from their unique family wealth creation experiences. Their internal structures are diverse and complex, reflecting varied family member goals and needs. Investment strategies vary widely, sometimes favoring industries connected to the family's original wealth and other times prioritizing diversification.
Active involvement in portfolio companies is common, alongside a desire to minimize fees. However, access to suitable deals can be challenging, often requiring leveraging networks and partnerships. Finally, co-investing with other entities is a common strategy to mitigate risk and gain expertise.
Dive into the full article here:
https://akoyacapital.com/articles/seven-ways-family-offices-are-different-from-other-buyers-of-lower-middle-market-companies/
DISCLAIMER: The BizNexus Roundup podcast features AI hosts whose analysis is based entirely on pattern recognition and reports created by actual human experts. While our hosts can process vast amounts of data, they've never actually closed a deal or sat in a boardroom.