Family office
A family office is a private organization that manages the wealth of a single family — or, as a multi-family office, several — and may include direct business acquisitions among its investments. Unlike a private equity fund, a family office usually has no fixed fund life, which can mean a longer, more flexible holding horizon.
Family offices vary enormously in size and approach, from a small team managing one family’s assets to organizations that behave much like institutional investors. What they generally share is patient capital — money that does not need to be returned to outside fund investors on a set schedule.
How a family office differs from a private equity fund
- No fixed fund life, so there is no built-in pressure to sell within a set number of years
- Investment decisions often involve the family directly, not only a professional deal team
- Mandates can be broader and less formulaic than a fund’s stated investment thesis
- Some acquire a business to hold indefinitely, closer to how a strategic buyer might operate
What this can mean in a sale
A seller weighing offers from a family office and a private equity fund is often weighing patience against process. A family office may offer more flexibility on timeline and structure; a fund typically brings more standardized process and, often, a faster, more predictable path to closing.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Treadstone LawLegal commentaryMergers & Acquisitions
- 02Treadstone LawLegal commentaryFinancing Options for First-Time Business Buyers in Ontario
- 03Treadstone LawLegal commentaryCorporate Law
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