Reuters is reporting that family-run investment firms are making waves in the consumer deals market, squeezing out private-equity players. It is believed that families are willing to wait longer for returns, giving them the edge over private-equity funds looking for a quick turnaround.
One of the reasons PE firms are not competing head on with family funds is that multiples on some valuations are too high to make the returns work. Family-funded investments in the sector are expected to grow. Food and beverage continues to be a very attractive industry.