Family Investors Buy 1-2 Old-Economy Deals a Year as Tax Breaks Boost HALO Strategy
Updated
Updated · CNBC · May 15
Family Investors Buy 1-2 Old-Economy Deals a Year as Tax Breaks Boost HALO Strategy
1 articles · Updated · CNBC · May 15
Family offices are increasingly targeting asset-heavy businesses such as dealerships, fisheries and farms, betting they offer steadier long-term returns and less exposure to AI-driven disruption than software or startups.
Bonus depreciation renewed under the "one big beautiful bill" has strengthened that trade by letting owners deduct 100% of qualifying machinery and vehicle costs in year one, improving after-tax returns.
Those businesses also attract buyers because traditional private equity often avoids heavy assets and shorter three- to seven-year hold periods, creating discounted entry points for investors willing to hold for 10 to 12 years.
Equity Group Investments, backed by Sam Zell's family, says it typically does one to two deals annually and is seeing more sellers approach as tariffs, inflation and farm stress pressure old-economy operators.
The broader appeal is durable cash flow and barriers to entry—from dealership franchise territories to fishing quotas—even as inflation still weighs on vehicle, equipment and agricultural demand.
With key tax incentives expiring by 2029, is the 'old-economy' investment boom built to last?
Can 'AI-proof' heavy assets truly remain safe as technology revolutionizes even the most basic industries?