- Posted by andrewsullivan
It is no secret that family offices are taking a more active role in directly investing in privately-held middle market companies. Up until recently, family offices have been characterized as ‘behind the scenes’ and have typically invested as a limited partner in a PE fund or as a co-investor with PE firms that they have a close relationship with. Today, family investment firms have emerged into the direct investing marketplace with new firm names, websites and marketing materials. An important driver of this shift is family offices hiring experienced deal professionals to lead sourcing, execution and portfolio management.
Recently we spoke with Jane Bierwirth at RSR Partners to get her thoughts on hiring trends at family offices. Jane told us:
“In the late 90s when I first started recruiting talent for families, the Yale model was the ‘holy grail.’ Everyone wanted the next David Swenson, Yale’s Chief Investment Officer, to work for them. After the equity markets took several hits during the last fifteen years, many families started shifting their focus away from the public markets to the private markets.”
Jane continued, “Warren Buffett espouses the great tax advantages of a buy and hold strategy. Our clients today want to hire dynamic investors who think long term and do not follow the herd.”
Family office investment professionals is the fastest growing segment of Normandy’s buyer network. We continue to develop new relationships and deepen current ones. We are confident that we can help family offices find the right opportunities for them.