As reported in our recent PE/VC Trends Report we note that as traditional sources of funding have dried up, PE and VC firms are seeking alternative sources of funding. Simultaneously, family offices are actively seeking alternative investment vehicles that offer potentially greater gains, even if they come with higher risks. This convergence makes private equity investments in Asia an appealing prospect for family offices. Executive search and leadership consulting firms become important partners in this process.
PE firms often rely on these services for various purposes, such as assessing the strengths and weaknesses of management teams in target acquisitions. Additionally, when a new acquisition is made, the new owners often need to make leadership changes, and executive search services are commonly used to address this need.
Empowering Family Businesses: The Role of Executive Search and Leadership Consulting
The establishment of family offices is just one aspect of the evolving dynamics of family businesses in Asia. Apart from wealth accumulation managed by family offices, there are also significant challenges related to the growth, leadership, and succession planning of these businesses. As a business grows and becomes more complex, effective management can become increasingly challenging. Some family businesses are ill-prepared to deal with transition. In some cases, despite the skills and intelligence of the next generation, there is no appetite from that generation to take on the responsibility of running the business. There are also situations in which a business has grown to a level of sophistication that is beyond the skills of the next-in-line. Both PE firms and leadership consulting firms can offer solutions, sometimes independently and sometimes in concert.
