As deals get bigger, family offices increasingly favor club deals to share risks

Day Pitney Partner and chair of the firm’s Corporate and Business Law Department and Family Office Practice, R. Scott Beach, was featured in Crain Currency discussing the growing use of club deals by family offices as transaction sizes increase. In the piece, Beach addressed how these deals are structured, the strategic considerations driving collaboration among families, and the importance of clear governance, control, and exit frameworks—particularly in situations requiring additional capital or involving heightened complexity.
 
As Beach explained: “We’ve seen a significant acceleration in this trend of family offices seeking club deals with other family groups over the past three to five years…including the desire among families to allocate the risk of these direct investments across a broader investor group, leverage the expertise and resources of other families and aggregate more capital to compete against private equity firms for larger and riskier deals that one family office may not be willing to pursue alone.”
 
Read the full article here.