Jeff Katz Comments on Activist Investments in Family Offices in Crain Currency

Private equity partner Jeff Katz spoke to Crain Currency about family offices increasingly taking activist roles in their interactions with their portfolio companies.

“There’s a lot of activism that goes on, including by family offices that you don’t see; because either they own less than 5%, so they’re not filing Section 13 filings, or they own more than 5%, but they’re not filing 13-Ds because they’re constructive activists,” Jeff told the publication. “They’re not demanding control — that doesn’t mean they’re not influencing companies.”

Jeff said that family offices should consult a legal adviser before making an activist move, adding that offices that own less than 5% of a company’s shares have more leeway because they aren’t required to file with the SEC.

“We talk to the family office and say: 'What’s your goal? How important is access?' Not only access to management but also access to opportunities,” he said, adding, “it’s good to get the guidance in front of the investment professional before they talk to other shareholders, before they talk to management.”