The wealth of a multitude of industrial families in Germany is being administrated by Family Offices. The business dealings are being lead by investment managers, often holding a degree from the Harvard Business School or other similarly renowned universities. The Family Offices are always intent on reaching high return on investments for the investing families.
How do the Family Offices invest the money?
The Family Offices are taking a similar approach to a private equity fund when making their investments. They choose the objects and commercially peruse them in the context of a due diligence process with eventually purchasing a stake of the company, thus ensuring the increase of wealth. Some Family Offices are taking a more careful approach than similar PE firms, who have a more extensive investment horizon.
The investment focus depends on the family
The family investors are differing in their configuration. The investments are placed into different economic sectors depending on the background. While the core idea is to primarily accumulate more money and increase the initial investment, some family investors are pursuing charitable goals. Susanne Klatten’s Skion GmbH for instance, is investing in water technologies as she suspects a shortage of the resource in the future. Other Family Offices support foundations pursuing charitable aims with their returns. The returns of the Robert Bosh GmbH are directly flowing in the Robert Bosch foundation, which in turn supports hospitals and social projects.
Similarities of the investments
Although the ulterior motive might often be different, some similarities are certainly striking. A lot of Family Offices are investing in industrial companies for example. There are several logical explanations for this. The family companies (where the assets from the Family Offices come from) have usually risen to success in the industry. Through this, one comprehends business models and can render aid through contacts and know-how. Cooperation between participation and family companies are also appropriate due to the long deadline.
Overview of the biggest German Single Family Offices
If you want to get an exact overview of the Family Offices, you would first have to identify them. As the families usually aim to stay in the background, it might be hard to find them. We offer the most extensive list available on the German market with our “Top Single Family Offices List”. Moreover, we update the list regularly – without additional charges. We are looking forward to your questions, you can direct them to contact [at] researchgermany.com or by message through our chat window.