Why family offices are winning deals over private equity firms

True squad goals are all in the family

New York Weekend Edition /
Oct.October 21, 2017 01:00 PM

Family offices are increasingly beating out private equity firms in mega-deals because of their fast decision-making and, often, their value-driven approach as owners.

Savvy family offices are the new sophisticated investors, according to Bloomberg News, with a series of moves within the last couple of years cementing the trend; they poach talent and they buy fast.

For example, take the sale of Quadrangle Group’s Hargray in March: in eight days, a consortia of families, headed by The Pritzker Organization, bought the company.

“There’s a network that’s growing of the big family offices who do these kinds of deals,” said The Pritzker Organization’s managing director Joseph Gleberman to Bloomberg.

“I was in the private equity business at Goldman for a long time, and it’s not dissimilar to what it was like 20 years ago, when you started to see Blackstone do a deal with KKR or Goldman do a deal with Warburg Pincus.”

It’s not just about speed though. Ring Container Technologies CEO Ben Livingston said his company ruled out the majority of private equity and strategic buyers from their sales process; limiting the pool of potential buyers to family offices and select private equity because Ring wanted a long-term buyer.

“Our interest was to find a buyer that would preserve our culture and essentially keep our leadership in place” Livingston told Bloomberg.

[Bloomberg News] — E.K. Hudson


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
A rendering of the project at 1 Park Row in the Financial District.
L.A.-based lender puts FiDi project into construction with $120M loan
L.A.-based lender puts FiDi project into construction with $120M loan
1133 Sixth Avenue, 114 West 47th Street, 537 Greenwich Street and 55 Broadway (Tdorante10/Wikimedia, Durst Organization, Easter Consolidated Google Maps)
These were the largest Manhattan real estate loans in May
These were the largest Manhattan real estate loans in May
Acting Katara CEO Andrew Humphries and 355 West 16th Street (Google Maps, AHIC)
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Hartz Mountain Industries CEO Leonard Stern and 235 Pinelawn Road (Google Maps, Hartz Mountain)
Warehouse developer accused of violating “Long Island First” policy
Warehouse developer accused of violating “Long Island First” policy
Blooma founder Shayne Skaff (LinkedIn, iStock)
CRE fintech startup Blooma nabs $15M in funding
CRE fintech startup Blooma nabs $15M in funding
President Joe Biden (Getty, iStock)
What Joe Biden’s infrastructure plan holds for real estate
What Joe Biden’s infrastructure plan holds for real estate
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...