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Family Offices Pivot to Traditional Industries, Shunning Tech Volatility

Wealthy family investment vehicles are increasingly deploying capital into established old-economy businesses as a hedge against technological disruption. This strategy is gaining traction among institutional investors.

Equity Group Investments, the Zell family's private firm, exemplifies this shift through holdings spanning John Deere dealerships, bluefin tuna fisheries, and infrastructure assets like the pedestrian bridge connecting San Diego to Tijuana International Airport.

Mark Sotir, EGI's president, cited the firm's extended investment horizon—10 to 12 years—as rationale for avoiding startups and software ventures whose trajectories remain unpredictable. The approach aligns with broader market momentum toward "HALO" investments: heavy assets with low obsolescence risk.

Family offices benefit from acquiring asset-heavy companies at discounts, as traditional private equity investors typically pursue three-to-seven-year exit windows. Economic uncertainty and tax policy changes have further accelerated capital flows into tangible, cash-generative businesses.