Family offices, traditionally tasked with preserving and maintaining generational wealth, are undergoing a remarkable transformation. They've shifted their focus from mere wealth preservation to actively seeking and seizing opportunities, emerging as influential players in global investment markets across diverse asset classes. This evolution is also evident in South African private mergers and acquisitions (M&A) transactions.
There are various types of family offices in existence. These include Family Investment Offices, Family Investment Funds, Family Business Corporate Ventures, and Family Investment Companies.
The professionalization of family offices is evident. Today, they often comprise highly qualified, multidisciplinary teams of advisors who are experts in finance, asset management, global tax structuring, estate planning, as well as cash and risk management.
Family offices have risen as prominent and agile participants in deals, actively involved in transactions spanning a broad spectrum of asset classes. Their deals mix includes investing in start-ups, private M&A transactions, real estate development, and tech driven industries such as computer software and services, transcending geographic and sector boundaries.
When it comes to private capital availability for M&A activities, family offices continue to have large amounts of capital available for deployment.
In modern investing, family offices are a dynamic force, exerting significant influence in the realm of M&A.