Pritzker Private Capital announced on July 28 its third fund at $2.7 billion, making it one of the largest family investment vehicles raised in North America. It’s the latest sign that family offices are playing an increasingly important role in private capital, a trend we covered in depth in our April cover story.
Especially well-known in Chicago, the Pritzker family is one of the wealthiest families in the U.S. and made much of its money through founding the Hyatt Hotels Corp. (NYSE: H). PPC is led by chief executive Tony Pritzker (brother of Illinois governor J.B. Pritzker) and Paul Carbone.
While traditional family offices typically invest only their own money, PPC has developed a club strategy, partnering with like-minded co-investors behind a shared long-term oriented approach to building businesses. For example, in 2020, PPC teamed up with Concentric Equity Partners and Duchossois Capital Management to recapitalize Energy Distribution Partners (EDP), a distributor of propane and light fuels in North America. “EDP is a terrific local company, and we partnered with two other Chicago families to get the deal done,” Carbone told us.
There’s plenty more to come. “We believe that family investing groups will continue to play an increasingly prominent role in the direct investing market,” PPC chairman and CEO Tony Pritzker, told Mergers & Acquisitions. “The completion of our new vehicle, among the largest family investment vehicles in North America, shows that there is substantial interest in our approach among family investors and family-led companies. We bring a differentiated, flexible perspective to building middle-market businesses for long-term success.”
– Demitri Diakantonis