A version of this article first appeared in CNBC’s Inner Wealth Newsletter, Robert Frank is a weekly guide for high-net-worth investors and consumers. Sign up to receive future versions directly to your inbox. Last month, the home office made at least 48 direct investments, twice the previous month, according to data provided specifically to CNBC by private wealth intelligence platform Fintrx. Last month, two of the most active home office investors, Laurene Powell Jobs’ Emerson Collective and Li Ka-Shing’s Horizons, participated in the Megarongs. Emerson Collective joins the $700 million X-Energy fundraiser, an Amazon-backed nuclear reactor startup. Meanwhile, Horizons Ventures co-led a $112 million round for Australian Health Technology Harrison. EAI was only one month after supporting another diagnostic startup, Owlstone Medical. Soros Capital, a family office run by Robert, son of billionaire George Soros, participated in the $350.7 million Series D season. Led by Roger Perlmutter, former head of research at Merck, the drug discovery company is testing different types of cancers of several drug candidates, including melanoma and prostate cancer. In one of the month’s acquisitions of a home office, Pritzker Private Capital purchased a majority stake in Americem, a manufacturer specializing in plastic color additives; financial terms are not disclosed. Founded by private equity investor and Hyatt Hotel heir Tony Pritzker, PPC has previously acquired at least two other plastics companies and Buckman, another industrial company this month. This month, the home office has seven notable deals with assets of at least $1.5 billion: The most innovative investment this month was signed by old European families behind the famous brand. Famille C, the heir of Clarins, invested in French deep technology startup Spore.bio, which quickly tested bacteria to ensure quality control. The first category is the investment company owned by the Peugeot Automobile Manufacturer family, which also participated in a $23 million Series C financing. Kirkbi is the Danish home office of the Kristiansen family behind Lego Toys, supporting Tide Vision, a biotechnology located in Bellingham, Washington. Tidal vision turns crab and shrimp shells into a non-toxic chemical called chitosan that can be used for many purposes, including water purification and flame retardants. Entrepreneur Mamoun Benkirane told CNBC that home offices are more willing to explore new ideas than traditional venture capital firms. In February, his Luxembourg-based e-commerce startup Marketleap raised a $8 million series led by Smedvig Ventures, the fourth-generation home office of the heir to Norway’s offshore oil rigs. Another home office took part in the round: Motier Ventures, owned by the Houzé family behind French department store chain Lafayette. Benkirane said in the past, investors focused on subscription revenue have been shut down by Marketleap’s Hybrid revenue model, which charges brands monthly fees and cuts profits in exchange for helping them expand their online sales. “Once you start rolling out something different than what they usually hear, they close,” Benkirane said of Tier-One VC. “What we like about Smedvig is that they try to think from our perspective rather than bringing their own perspective and knowing if we are right for it.” Being a major investor with a family office and not a traditional venture investor could mean sacrificing name recognition. Benkirane said he thinks it’s worth it, especially when home offices like Smedvig Ventures invest in only a few startups a year and can give their portfolio companies more attention. “Honestly, my general advice is to stop caring about the names of investors. That’s the noise,” he said. “If something goes wrong, you want someone who will be with you, rather than saying, ‘Okay, I’m going to write off this company and focus on the next big company.'”
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A version of this article first appeared in CNBC’s Inner Wealth Newsletter, Robert Frank is a weekly guide for high-net-worth investors and consumers. Sign up To receive future versions, go directly to your inbox.
Last month, the home office made at least 48 direct investments, twice the previous month, according to data provided specifically to CNBC by private wealth intelligence platform Fintrx.
