A new equity fund focusing on family-owned businesses has been launched in Europe.
Called the Family Businesses Fund, it was established by March Gestion, the investment arm of Spanish bank Banca March, which is controlled by the March family.
The fund will invest in listed firms that have strong family links – where a family owns more than 25% of the shares, at least one family member is involved in the top management and there is a willingness to involve the next generation.
“The characteristics of family businesses [are] long-term view, commitment, loyalty, motivation and low leverage,” Jose Luis Jimenez, chief executive of March Gestion, said in a statement.
“[These] make them solid and stable businesses in the long run, compared to other non-family companies, as has been proven crisis after crisis. As a matter of fact, family businesses’ revenues and profits are better than those of non-family businesses,” he added.
The Family Businesses Fund, which will be managed by Javier Perez and Jose Antonio Mendez, is registered for sale in Spain, Italy and Luxembourg and is currently being registered in the UK, Switzerland and Austria.