Family businesses are the engine of the world’s largest, most productive and fastest growing economies.
Like any privately owned business they continually grow and evolve but have the added complexity of capital succession, as well as management succession issues to address. At some point in the development of the successful family firm, owners will be faced with strategic decisions at key points of change, including how to take the business to the next level. These types of issues are not always resolved within the business and sometimes the situation may point towards a private equity partner with objectivity and prior experience of similar situations.
At Brascan Capital, we are committed to investing in and partnering with family-owned businesses; during our 60 year history, we have invested successfully in a substantial number of family-owned firms. We consider a family business to be one where the family has a direct influence on the business.
Our approach
Brascancapital has been able to work with family businesses in several ways to produce the best solution. Our Growth Capital team specialises in minority investments direct from our own balance sheet, forming long term partnerships with existing owners who remain in control; while our Buyout team seeks to acquire whole businesses from owners looking for maximum liquidity and a smooth transition of ownership.
Typical investment situations where we help family businesses:
- Seeking and executing transformational acquisitions
- Entering new geographies and markets
- Accelerating growth plans by sharing vision and risk
- Providing liquidity to shareholders – allowing owners to release some of the value they have built into their business without surrendering control
- Increasing levels of equity for management;
- Introducing key resources such as new executive management, non-executive directors, and access to new customers, suppliers and financiers
- De-gearing overstretched balance sheets.
We recognise that long term family owners care deeply about continuity and that retaining control of their company can be an important emotional and financial threshold. Brascan Capital is a dedicated minority investor and has experience working in partnership with controlling shareholders without having control.
We seek to participate as an active partner where there is a shared vision for growth and to enable the family business to draw on our global and local resources and expertise to compliment their ambitions.