Family Offices in Portugal: what they are and how they invest in companies

A family office can be a potential buyer of a Portuguese company, especially when the owner is looking for a succession solution or an investor for the next phase of the business. However, the term does not describe a single strategy: two family structures may have very different interests, investment capacity, and decision-making processes.

For those considering selling, the useful question is not just "what family offices exist in Portugal?". It is to understand which invest directly in companies, who decides, and what role they reserve for the entrepreneur after the transaction.

What is a family office?

A family office is a structure dedicated to the organisation and management of family wealth. A single family office serves one family; a multi-family office provides services to several. The work can encompass investments, monitoring of holdings, and coordination of wealth matters with external specialists.

Not all buy companies. Some focus on financial assets, real estate, or stakes in funds. Others have teams to analyse an SME, negotiate an acquisition, and oversee the business. A multi-family office can advise its clients without being, itself, the buyer or the capital holder.

Therefore, before presenting an opportunity, it is advisable to distinguish three roles: who advises, who chooses the investment, and who actually invests. An institutional designation does not replace this verification.

How do they invest in private companies?

Direct investment

In direct investment, family capital enters a company, usually through an investment vehicle. The operation can allow for the complete exit of the founder, the sale of part of the stake, or a capital increase aimed at growth.

These situations have different consequences. In the purchase of existing stakes, the money is paid to the seller. In a capital increase, it enters the company. An operation can combine both components; the proposal should make clear how much the entrepreneur receives and how much is available for the business.

Co-investment

In co-investment, the family participates alongside other investors. There may be a lead investor responsible for analysis and negotiation, and others who accompany the operation. The structure allows for the pooling of capital and skills, but adds decisions and conditions that the seller needs to be aware of.

Ask who leads, who has already approved the investment, and whether the closing depends on the entry of third parties. Having an interest in co-investing does not equate to having a completed funding commitment. A family can also participate in an acquisition organised by an independent sponsor.

Investment through funds

A family can also invest in a private equity fund. In this case, the acquisition is led by the manager according to the fund's mandate. The existence of family capital at the origin does not automatically turn the fund into a buyer with flexible decisions or timelines.

Family office and private equity: what is the difference?

"Family office" primarily identifies the structure and origin of the wealth. "Private equity" describes investment in the capital of unlisted companies and, in common usage, specialised funds in that investment. The categories can overlap: a family office can do private equity directly.

A traditional fund pools commitments from various investors and has its own investment rules and duration. A family structure can invest without the same disinvestment timeline. This can favour a prolonged stay, but does not mean it will never sell, that it will accept any return, or that it will dispense with rigorous analysis.

For the entrepreneur, compare specific conditions: desired horizon, percentage acquired, management autonomy, expected debt, and exit strategy. The name of the model does not answer any of these questions alone.

A search fund has a different logic, usually centred on an entrepreneur looking to acquire a company to lead it. The guide on Search Funds in Portugal explains this path, which should not be confused with family wealth management.

Why might a family want to buy an SME?

Possible motivations include diversifying wealth, investing in a known sector, following a competent team, or developing a business group. An established company may be of interest due to its relationship with customers, technical skills, cash generation, or position in a niche.

These are framing hypotheses, not universal criteria. A profitable business may fall outside the strategy for being too small, requiring daily management that the investor cannot ensure, or being in an excluded sector.

The timing also matters. A recent acquisition or concentration of the portfolio in a certain sector may reduce availability for new operations. Public information helps select contacts, but the current thesis and capacity need confirmation.

Example in Portugal: what can public information conclude?

The Mello RDC publicly presents itself as a family office based in Lisbon, active in real estate and private equity. It refers to investment through capital participations, as a sole investor or in co-investment with other family offices.

The example illustrates two ways of acting: direct investment and sharing an operation with other families. It does not allow for the conclusion that any Portuguese SME fits, nor deduce a minimum acquisition value, a preference for control, or a duration of stay. These criteria were not disclosed in the consulted sources.

The reference is editorial and does not represent a partnership with the Comprar Empresa, a recommendation for investment, or an indication of interest in a specific company.

Business succession: where can it make sense?

When children do not want to take over the business and the founder wishes to reduce their presence, selling to family capital can be one of the alternatives. The decisive point is to understand who replaces the owner in the functions they perform.

If the founder concentrates on sales, production, and financial decisions, changing the shareholder does not solve the operational succession. It will be necessary to prepare a team, hire leadership, or agree on a transition period. Also consult the business succession alternatives when there is no family successor.

A partial sale can allow for liquidity and continued involvement. However, maintaining a stake does not guarantee retaining control. It is necessary to discuss reserved decisions, periodic information, profit distribution, and conditions for a future exit.

Possible advantages and limitations for the seller

• Continuity: there may be an opportunity to develop the business over several years. Confirm the horizon and objectives.

• Flexibility: some families can adapt the structure of the operation. Others have internal rules and demanding approval processes.

• Business experience: can be useful when there is knowledge of the sector. Do not assume operational capacity solely based on the size of the wealth.

• Dependence on decision-makers: a small team can make the decision more direct, but also concentrate it in a few people.

• Future liquidity: those who maintain a stake need to understand how and when they can sell it.

The best offer is not necessarily the one with the highest advertised price. Compare the amount paid at closing, future payments, conditions, guarantees, and obligations of permanence. A component dependent on future results has a different risk than money received on the day of sale.

How to prepare the approach to a family office

Start with a non-confidential presentation

Prepare a summary with sector, region, activity, approximate size, reasons for the operation, and desired role after the sale. Explain why you believe there is a fit with the recipient's strategy. Avoid sending a generic presentation to dozens of entities.

At this stage, you do not need to identify clients, employees, or reveal trade secrets. The most sensitive information should be shared in a controlled manner, after confirming the interlocutor and agreeing on the appropriate confidentiality.

Organise the elements that support the business

• Accounts and recent evolution, with explanation of extraordinary costs.

• Debt, cash, investment needs, and seasonality.

• Concentration of customers and suppliers, initially without unnecessary identification.

• Management team and tasks that depend on the founder.

• Included assets, real estate, and relevant contracts.

• Available percentage, value expectations, and desired timeline.

Before setting an expectation, work on the valuation of the company. An initial estimate serves to prepare the conversation; it does not replace the specific analysis of the operation nor constitute a purchase offer.

Qualify the buyer before granting exclusivity

Ask what vehicle they are buying, who approves, the source of the capital, whether there will be external financing, and what comparable acquisitions the team has accompanied. Request a timeline with steps and responsibilities. If there is co-investment, confirm any pending approvals.

Also discuss the future of the brand, the facilities, and the team. If any of these points are essential conditions for the sale, they should be expressly addressed in the negotiation, with specialised support in the documentation.

Next steps for entrepreneurs and investors

If you intend to sell your company, start by clarifying the operation and preparing a presentation that allows potential buyers to assess the fit. The initial goal is to obtain relevant conversations, not to indiscriminately disclose sensitive information.

If you invest, you can explore companies for sale and present the seller with a concrete thesis: sought activity, geography, desired structure, and execution capacity. Avoid vague requests that force the entrepreneur to guess your interest.

Frequently asked questions about family offices

What is a family office?

It is a structure that organises the management of the wealth of one or several families. It can invest in private companies, but not all family offices make direct acquisitions.

Does a family office buy the entirety of a company?

It can buy the entirety, a majority stake, or a minority stake. The preference depends on the entity, the operation, and the negotiated rights.

What is the minimum investment of a family office in Portugal?

There is no common minimum. The criteria should be confirmed with each entity; the managed wealth does not allow for the deduction of the amount available for an acquisition.

Does selling to a family office guarantee the maintenance of the brand and employees?

No. The intention of continuity should be discussed and translated into concrete commitments when it is decisive for the sale.

How to contact a family office to sell an SME?

Start by verifying the fit of the company within the public strategy of the investor. Send a brief, non-confidential presentation and share detailed information in phases.