Family offices are increasingly moving away from their founders’ original business sectors, with a notable shift occurring among those established by consumer packaged goods (CPG) entrepreneurs. This expansion represents a significant evolution in investment strategy as these wealth management entities seek broader portfolios and new growth opportunities.
The trend highlights how family offices, which traditionally managed wealth created from successful CPG businesses, are now exploring diverse sectors to secure long-term financial stability and growth for future generations.
Strategic Diversification
Family offices established by CPG industry founders are strategically diversifying their investments across multiple sectors. This shift comes as these organizations mature and develop more sophisticated investment approaches that extend well beyond the industries where their principals initially created wealth.
The diversification strategy appears driven by several factors:
- Risk mitigation through exposure to different market sectors
- Pursuit of higher returns in emerging industries
- Interest in technologies that might complement or disrupt traditional CPG businesses
“These family offices are applying the business acumen that made them successful in consumer goods to entirely new sectors,” notes industry observers who track family office investment patterns.
Investment Targets
The expansion has directed family office capital toward several key areas. Technology investments have become particularly attractive, with many offices funding startups in financial technology, healthcare innovation, and sustainable energy solutions.
Real estate continues to serve as a cornerstone for many diversified portfolios, offering both steady income and potential appreciation. Meanwhile, private equity investments allow these family offices to take meaningful positions in established businesses across various industries.
“Family offices are increasingly acting like institutional investors, but with the flexibility to make decisions based on values and long-term vision rather than quarterly results,” explains wealth management experts.
Generational Influence
The shift away from CPG-focused investments often coincides with generational transitions within families. Second and third-generation family members frequently bring new perspectives and interests that differ from the founding generation’s focus.
These younger family members may have educational backgrounds in technology, sustainability, or finance rather than consumer products, influencing investment decisions toward areas aligned with their expertise and interests.
Family offices are also increasingly hiring professional investment teams with diverse industry backgrounds to help navigate unfamiliar sectors and identify promising opportunities outside the CPG space.
Maintaining Connections
Despite this diversification, many family offices maintain connections to their CPG roots. Some leverage their industry knowledge to make strategic investments in emerging consumer brands, acting as both investors and mentors to new entrepreneurs.
Others focus on adjacent industries where their CPG expertise provides competitive insight, such as retail technology, supply chain innovation, or sustainable packaging solutions.
This balanced approach allows family offices to explore new territories while still capitalizing on their established expertise and networks in the consumer goods sector.
As this trend continues, the investment landscape will likely see these family offices becoming increasingly influential across a broader range of industries, applying their patient capital approach to businesses far removed from the consumer packaged goods companies where their wealth originated.
