An estimated $6 trillion to $7 trillion is available to companies through family offices, a less-familiar way to access capital than private equity and debt but one that can come with advantages in terms, specialists say.
The typical family office gets started through the sale of a family’s business interests, says Gregory Kushner, chairman at Lido Advisors, a wealth advisory firm. The money is invested in other companies, often but not always in businesses similar to the ones in which the family made its money.
"A family that made their money in the retail businesses likely would be much more comfortable investing in other retail businesses, where they could bring their insights and intellectual capital besides just their money," Kushner told CFO Dive. "Similarly, a family that made their fortune in technology likely would be comfortable investing in other tech companies, while other investors without specific domain expertise would not."