The rise and impact of family offices in private markets: exploring investment trends and performance effects

Purpose: This research delves into the world of family office (FO) investments in private markets, aiming to shed light on their strategic roles and potential correlation with the performance of companies they back. The study meticulously examines the characteristics of family offices as private market investors and their association with the funded company performance as measured by Return On Assets (ROA). Design methodology: Utilizing a comprehensive dataset of financial transactions, the study conducts descriptive statistics to map out the investment behaviors of FOs in private markets. By employing regression analysis, the association between FO investments and the performance metrics of the recipient companies is evaluated, differentiating these investments from those made by business angels. Findings: The investigation revealed a statistically significant correlation between family office investments and enhanced ROA in target companies, underscoring the value-added contribution of FOs to corporate performance. Notably, the positive association is intensified as the number of co-investors alongside FO increases, confirming the efficacy of collaborative investment approaches. The study also identifies an investment behavior significantly influenced by home bias and a strong tendency towards countries recognized as startup hotspots. It also reveals an apparent preference for co-investment strategies, an increased focus on Business Services and emerging industries such as Software and Financial Services.

Scopo: Questa ricerca esplora il mondo degli investimenti dei family office (FO) nei mercati privati, con l'obiettivo di approfondire il loro ruolo strategico per le aziende finanziate. Lo studio è volto ad analizzare le caratteristiche e le dinamiche di investimento dei family office, nonché ad esaminare le potenziali correlazioni di essi con le performance aziendali, misurate in termini di Return On Assets (ROA). Metodologia: Impiegando un ampio set di dati di transazioni finanziarie, lo studio utilizza tecniche statistiche per delineare i comportamenti di investimento dei family office nei mercati privati. Attraverso l'analisi di regressione, esamina l'associazione tra gli investimenti dei family office e la performance delle aziende finanziate, distinguendo tali investimenti da quelli effettuati da business angels. Risultati: L'indagine rivela una correlazione statisticamente significativa tra gli investimenti dei family office e un ROA migliorato nelle aziende target, sottolineando il valore aggiunto apportato dai FOs alla performance aziendale. In particolare, l'associazione positiva si intensifica quando il family office co-investe, confermando l'efficacia degli approcci di investimento collaborativi. Lo studio identifica anche un comportamento di investimento notevolmente influenzato dall'home bias e una forte tendenza verso paesi riconosciuti come hotspot di startup. La ricerca rivela inoltre una chiara preferenza per le strategie di co-investimento, un crescente interesse per Business Services e settori emergenti come Software e Servizi Finanziari.