Why Family Offices Could Be a Godsend for Start-Up Funding

This article was originally published in GrowthBusiness.co.uk. Any opinions in this article are not those of Winston & Strawn or its clients. The opinions in this article are the author’s opinions only. 

For generations, family offices have favoured investment in bonds and shares. But as these wealthy, dynastic institutions move to the next generation, there is an emerging appetite for investment in fast-growth start-ups.

In an article for GrowthBusiness.co.uk, Winston & Strawn London Partner Ian Borman outlines some of the drivers behind this shift and discusses the mutual benefit for both family offices and start-ups.

Ian argues that family offices are moving away from traditional investment avenues such as real estate, hedge funds, public bonds, and equity markets due to a reduced return and are exploring lucrative alternatives. With a ten-fold increase in the number of family offices worldwide since 2008, these institutions are rapidly modernising to favour investments that offer more control and greater returns ahead of what is set to be the biggest generational wealth transfer of all time, with £52tn set to change hands in the next 25 years.

SMEs should take note of this significant shift in the investor landscape, with opportunities for increasing revenues alongside access to significant networks that are attached to influential high-net-worth families as they seek to tap into the opportunities of direct investment.

You can read the full article here.