From Allocators to Acquirers: The Family Investing Model and Transgenerational Entrepreneurship

Jennifer Pendergast () and Sachin Waikar ()
Additional contact information
Jennifer Pendergast: Northwestern University
Sachin Waikar: Northwestern University

Chapter 22 in Family Entrepreneurship, 2021, pp 299-313 from Springer

Abstract: Abstract The ability to pass along entrepreneurial spirit and related skills has been the linchpin of success for generations of family firms. Historically, this has been achieved by moving in and out of operating businesses to capitalize on opportunities to harvest capital and to ensure the business portfolio remains profitable and competitive. Families who are successful have also accumulated liquid wealth along their journey, and have often created a separate entity to manage that money: the family office. Today we are witnessing a large movement from the family office toward a family investment company approach. In the words of one family investor, “Families are moving from allocators to acquirers,” deploying their capital directly into operating entities rather than allocating it across a range of asset managers or investment funds. This chapter introduces a new model for how families achieve transgenerational entrepreneurship, through a broader-scope investing model focused on direct investment. We will describe the motivation behind the Family Investing Model, explain its related dimensions and challenges, and illustrate it with stories from multiple families who have proceeded down this path, reaping the benefits of family investing while managing associated risks.

Keywords: Family investing; Family office; Direct investing (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-66846-4_22

Ordering information: This item can be ordered from
http://www.springer.com/9783030668464

DOI: 10.1007/978-3-030-66846-4_22

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().