Family Enterprises Bump Off Hedge Funds in Deals

By Marc Castro

May 14, 2013 10:39 AM EDT

The image is the corporate log of the Reimann family investment arm Joh A Benckiser SE (Photo : Reuters)

At this time, family run investment firms are lording it over the market for consumer deals, bumping off private equity firms and forcing them to rethink their overall strategy.

Many of these families have made their fortunes in the consumer sector and have deep pockets. Their goal in investing is to secure their wealth for the succeeding generations. Many are patient enough to wait on the yields, which gives them an edge compared to hedge funds seeking to earn a quick buck.

One such example is the German billionaire family of the Reimanns, who invests through Joh A Benckiser and its purchase of Douwe Egberts coffee. This move consolidated a hot drinks conglomerate that is comparable to Nestle and Mondelez International in the long run.

Family funded investments are expected to grow especially in the food and beverage industry. According to the Forbes Rich List, in Europe 9 of the 51 billionaires have earned through investments in the consumer market. 

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