The rise of Family Offices is an enabler of entrepreneurial private equity:
(i) Compared to institutionals, FOs have flexible mandates and a proclivity for direct investments, all of which matches perfectly with the emerging deal-by-deal PE ecosystem.
(ii) Most family offices are established by first- or second-generation entrepreneurs, who favor opportunities to get involved over index funds and passive investments.
(iii) These FOs will continue to fuel independent sponsors, and together they will become increasingly comfortable and equipped to take down larger and larger deals.
(iv) Increased appetite from capital providers and low barriers of entry will continue to siphon talent from PE funds to the deal-by-deal world, who are looking to go big by going small.
