Family Offices Intensify Investment Activity: A Spotlight on Recent Deals
Recent data from Fintrx, a private wealth intelligence platform, highlights a notable surge in investment activity by family offices. In the last month alone, these entities made at least 48 direct investments, marking a twofold increase from the previous month. Here, we take a closer look at some of the most significant transactions and trends within the family office investment landscape.
Key Players in the Investment Landscape
Among the family’s offices making headlines are Laurene Powell Jobs’ Emerson Collective and Li Ka-shing’s Horizons Ventures. Emerson Collective actively participated in a significant funding round, helping to raise $700 million for X-Energy, a startup focused on developing innovative nuclear reactor technology supported by Amazon. In another noteworthy deal, Horizons Ventures co-led a $112 million investment in Australian health tech company Harrison.ai, adding to their portfolio just one month after backing diagnostics pioneer Owlstone Medical.
Soros Capital, under the management of Robert Soros, participated in a $350.7 million Series D funding round for Eikon Therapeutics, a company advancing drug discovery efforts for various cancer types, including melanoma and prostate cancer. Roger Perlmutter, formerly of Merck, leads this promising venture.
Strategic Acquisitions
In a rare acquisition move this past month, Pritzker Private Capital acquired a majority stake in Americhem, a manufacturer specializing in color additives for plastics, although the financial details of the transaction remain undisclosed. Founded by Tony Pritzker, this private equity firm has a history of acquiring companies in the plastics sector, having previously purchased two others.
Innovative Ventures by Old-Money Families
Some of the most interesting recent investments have come from traditional European families engaged in new technological ventures. For example:
- Famille C: The family office of the heirs to the Clarins skincare brand invested in Spore.Bio, a French deep-tech startup focused on creating rapid bacterial tests for quality control.
- First Kind: The investment firm connected to the Peugeot family also contributed to a $23 million Series C funding effort for Spore.Bio.
- Kirkbi: The family office of the Kristiansen family, creators of Lego, invested in Tidal Vision, a biotech firm converting crab and shrimp shells into chitosan for various applications including water purification.
Family Offices vs. Traditional Venture Capital
Entrepreneur Mamoun Benkirane, who leads the e-commerce company MarketLeap, advised that family offices often take a more open-minded approach toward unique business models compared to traditional venture capital firms. His startup raised $8 million in a Series A round led by Smedvig Ventures, a fourth-generation family office tied to a Norwegian oil rig company.
Benkirane remarked on the challenges faced when pitching to tier-one VCs, stating, “As soon as you start pitching something that is different than what they usually hear, they shut down.” He appreciated Smedvig Ventures for their willingness to understand his company’s perspective, contrasting it with traditional firms that might not be as receptive.
He emphasized the merit of partnering with family offices, stating, “If things go wrong, you want someone who’s going to spend time with you,” rather than investors who might prioritize other projects over supporting their portfolio companies.
Conclusion
The recent spike in family office investments illustrates a dynamic landscape where wealthy families are increasingly willing to explore diverse and innovative opportunities. As these entities continue to engage in strategic investments across various sectors, they are not only shaping their portfolios but also influencing the development of emerging technologies and startups worldwide.
