Financing Family Businesses Through Private Equity

Research background: Private equity is used to finance family businesses in different forms and stages of the development cycle. The immanent characteristics of family businesses, which are the desire to maintain economic independence and to carry out succession, are at odds with the nature of private equity investment, 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 nature of 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 results from the author’s own research. Main findings: The results of the analyses carried out indicate that financing by means of private equity is relatively rarely used by family businesses in both the European market and in Poland, but at the same time, they indicate situations where it is appropriate or necessary.