As businesses around the world steady themselves for an unprecedented economic downturn, many commentators have weighed in the implications for SMEs and fund managers. Articles and interviews have included concern around working capital shortages for entrepreneurs, VCs and investors rescinding term sheets, and governments’ fiscal responses to ease trade credit and payments issues. What’s been missing from the conversation, however, is what this means for family offices investing and operating globally.
Of concern are the effects of the downturn on family offices and institutional investors and how disputes and working capital problems will affect investors. Inevitably, the family office community will need to be more prepared than ever to handle investment-related disputes as they arise in the coming months.