Top Family Office Investments

Family Offices Make a Splash in Investment Market

Last month, family offices made at least 48 direct investments, double that of the month prior, according to data provided exclusively to CNBC by Fintrx, a private wealth intelligence platform. This surge in activity highlights the growing interest in alternative investment opportunities and the increasing willingness of family offices to take on more risks.

Megadeals and Notable Investments

Two of the most active family office investors, Laurene Powell Jobs’ Emerson Collective and Li Ka-shing’s Horizons Ventures, participated in megarounds last month. Emerson Collective joined the $700 million fundraise for X-Energy, a nuclear reactor startup backed by Amazon. Horizons Ventures co-led a $112 million round for Australian health tech Harrison.ai, only one month after backing another diagnostics startup, Owlstone Medical.

Soros Capital and Pritzker Private Capital Make Moves

Soros Capital, the family office run by billionaire George Soros’ son Robert, participated in a $350.7 million Series D round for Eikon Therapeutics. Led by Merck’s former research chief, Roger Perlmutter, the drug discovery firm is testing several drug candidates for different types of cancer, including melanoma and prostate cancer.

Pritzker Private Capital, founded by private equity investor and Hyatt hotels heir Tony Pritzker, acquired a majority stake in Americhem, a manufacturer of color additives for plastic. The financial terms were not disclosed.

Old-Money European Families Join the Fray

Some of the month’s most innovative investments were signed by old-money European families behind well-known brands. Famille C, the family office of the heirs to Clarins, invested in French deep tech startup Spore.Bio, which develops rapid tests for bacteria to ensure quality control. First Kind, the investment firm owned by the Peugeot automaker family, also participated in the $23 million Series C round.

Kirkbi, the Danish family office of the Kristiansen family behind Lego toys, backed Tidal Vision, a biotech based in Bellingham, Washington. Tidal Vision turns crab and shrimp shells into a nontoxic chemical called chitosan, which can be used for various purposes, including water purification and flame retardant.

Why Family Offices Are an Attractive Choice for Startups

Entrepreneur Mamoun Benkirane, whose Luxembourg-based e-commerce startup MarketLeap raised an $8 million Series A round led by Smedvig Ventures, a fourth-generation family office, notes that family offices can be more willing to explore new ideas than traditional venture capital firms. "As soon as you start pitching something that is different than what they usually hear, they shut down," Benkirane said of tier-one VC firms. "What we liked about Smedvig is that they tried to think from our perspective as opposed to bringing their own perspective and seeing whether we fit it."

Conclusion

The surge in family office investments is a sign of the growing appetite for alternative investment opportunities and the increasing willingness of family offices to take on more risks. While some may argue that family offices lack the prestige of traditional venture capital firms, entrepreneurs like Benkirane believe that the benefits of working with a family office outweigh the drawbacks.

Frequently Asked Questions

Q: What is a family office?
A: A family office is a private wealth management firm that manages the financial and investment interests of a wealthy family or individual.

Q: Why do family offices invest in startups?
A: Family offices invest in startups to diversify their portfolios, generate returns, and support innovative companies that align with their values and interests.

Q: What are the benefits of working with a family office?
A: Family offices often provide more flexible investment terms, personalized attention, and a willingness to take on unconventional investment opportunities.