Family Offices Move Into Human Capital M&A

Family offices are becoming a more influential source of capital across private markets, and their growing appetite for direct investments is expanding the buyer universe for founder-led businesses. For the human capital sector, that shift is particularly noteworthy as executive search, recruiting, staffing, and advisory firms attract interest from a wider range of investors. Evan Berta, an associate at Hunt Scanlon Ventures, examines why family capital could become an increasingly important force in human capital M&A.

Altss’ latest ranking, The 50 Largest Family Offices in the World (2026), illustrates the scale family capital has reached. The 50 largest offices collectively manage an estimated $2.4 trillion, with the top 10 controlling more than $1.5 trillion. Twenty-eight of the top 50 are headquartered in North America, while private equity represents their largest average portfolio allocation at 27 percent.

More significant for M&A is how that capital is being deployed. Altss finds that direct investing has overtaken fund allocations as the dominant strategy among the largest family offices. Rather than participating exclusively as limited partners, more family offices are building the capabilities to invest directly in private businesses.

Family Capital Moves Direct

The move toward direct investing represents an important evolution in the family office model. Larger offices increasingly resemble sophisticated private investment firms, with dedicated teams evaluating opportunities across private equity, venture capital, real estate, private credit, and operating businesses.

“The significance for human capital M&A is that family offices are increasingly becoming part of the buyer universe rather than simply investors behind the funds doing the deals,” said Evan Berta, an associate at Hunt Scanlon Ventures. “As these organizations build direct-investment capabilities, founder-led search and advisory businesses can fit naturally within a longer-term investment strategy.”

“The significance for human capital M&A is that family offices are increasingly becoming part of the buyer universe rather than simply investors behind the funds doing the deals.”

Unlike traditional PE funds, family offices can invest without predefined fund lives or conventional exit timelines. Strategies vary considerably, but that flexibility can give certain family investors more latitude around ownership duration, management development, and growth.

Why Human Capital Fits the Model

The human capital sector has several characteristics that could appeal to these investors. It remains highly fragmented, with founder-led businesses spanning executive search, recruiting, staffing, leadership advisory, assessment, coaching, and talent intelligence.

Many successful firms are built around durable client relationships, specialized expertise, repeat business, and intellectual capital rather than significant physical assets. A strong platform can also provide a foundation for acquisitions across adjacent specialties, geographies, and advisory capabilities.

“Human capital businesses require a different ownership mindset because so much of the enterprise value is tied directly to people,” said Mr. Berta. “The client relationships, consultants, leadership team, and culture are the assets, so preserving those elements while helping the business scale becomes critical.”

A Different Partner for Founders

Family offices also introduce another option for entrepreneurs considering succession, liquidity, or outside capital. Private equity and strategic buyers remain central to human capital M&A, but family-backed investors can bring different objectives and ownership structures to the conversation.

That can matter to founders who want to remain involved, preserve the identity of their firms, or pursue growth without immediately preparing for another transaction. Not every family office will fit that profile, and investment mandates vary widely, but a larger direct-investment ecosystem creates another potential source of capital for sellers.

“The decision for founders is increasingly about more than valuation,” said Mr. Berta. “They are evaluating who will be the best steward of the business, what happens to their people and clients, and whether the next owner understands what made the firm successful in the first place.”

Family Offices Build M&A Muscle

The shift is being supported by greater institutionalization within family offices themselves. Larger organizations are building professional infrastructure around sourcing, underwriting, diligence, and portfolio oversight, increasing their ability to pursue transactions directly rather than relying exclusively on outside fund managers.

This evolution is important for the human capital market. As family offices develop more sophisticated investment capabilities, they can consider a wider range of private businesses and compete alongside traditional financial sponsors for attractive founder-led assets.

A New Buyer in Human Capital

For human capital M&A, family offices add another dimension to an already active buyer landscape. Private equity firms continue building platforms, strategic acquirers are expanding capabilities, and founders are evaluating succession and partnership opportunities. Family capital can increasingly sit alongside those groups as another source of liquidity and growth investment.

“Their patient capital and longer investment horizons can be particularly compelling for founder-led search and advisory firms where relationships, culture, and intellectual capital are central to enterprise value.”

“Family offices are becoming a more relevant part of the buyer universe in human capital,” said Mr. Berta. “Their patient capital and longer investment horizons can be particularly compelling for founder-led search and advisory firms where relationships, culture, and intellectual capital are central to enterprise value.”

As more family capital moves directly into private businesses, specialized executive search and advisory firms could become increasingly attractive targets. For founders, that means the next buyer across the table may not necessarily be another search firm or a traditional PE fund. It could increasingly be family capital looking for its next long-term investment.