Financing Family Businesses Through Private Equity
Financing Family Businesses Through Private Equity

Summary/Abstract: Research background: Private equity is used to finance family businesses in different forms and stagesof the development cycle. The immanent characteristics of family businesses, which are the desire tomaintain economic independence and to carry out succession, are at odds with the nature of private equityinvestment, which involves taking equity stakes and controlling the business.Purpose of the article: The study aims to identify the adaptation of private equity financing to the natureof family businesses and to indicate in which situations it can be used.Research methods: The paper draws on research results presented in the literature, reports, and resultsfrom the author’s own research.Main findings: The results of the analyses carried out indicate that financing by means of private equityis relatively rarely used by family businesses in both the European market and in Poland, but at the sametime, they indicate situations where it is appropriate or necessary.

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