We created this article as part of our research process for our United States single-family office database. Here, we are investigating the share of family investment vehicles that invest in private equity, either through funds or direct investments.
In total, 296 US single family offices are focused on private equity investments. This represents a share of 66%. Private equity has seen substantial growth in the USA over the past few decades. According to data from Statista, the total value of private equity deals amounted to approximately $700 billion in 2021 alone. The industry is known for its aggressive strategies including leveraged buyouts (LBOs), where large amounts of debt are used to finance acquisitions. However, PE firms also use other strategies such as growth capital investment for expanding companies.
Family offices are playing an increasing role in the US private equity landscape. Most private equity-focused family offices can be found in California (55) and New York (53). In the following, we are portraying an interesting family office that is mainly focused on PE investments.
Duchossois Capital Management: Private Equity-focused Single Family Office from Chicago
The Duchossois Group was initiated by businessman Richard L. Duchossois, who was CEO of Thrall Car and purchased the Chamberlain Manufacturing Corporation in 1980. The net worth of the family is estimated at $3bn. Through Duchossois Capital Management, the family is pursuing private equity, real estaate, fund and public securities invetments. Within its private equity vertical, the family office is focused on management and levreaged buyouts, recapitalizations, add-on acquisitions and growth equity. Target revenue ranges from $50M to $1bn. Firms should have between $10-200M EBITDA. In comparison to traditional private equity firms, the family office pursues long-term value growth, is highly flexible and has a flexible holding period. Portfolio companies include illumifin (third party administration services for insurers), Sevita (community-based care) and EDP (propane and light fuel distributor).
Picture source: Thomas Habr via Unsplash (16.01.2024)