It’s All About Family: Esas Group

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It’s All About Family: Esas Group

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Publication Date:
September 05, 2019

Source:
Harvard Business School

This case describes how Ali Sabancı and his sister Emine Sabancı Kamışlı, shareholders of Esas Group, one of Turkey’s largest family-owned investment firms, worked to grow and professionalize the business. While their father Şevket Sabancı, played an instrumental role in launching the group in 2000, he soon stepped back and let his children drive the business forward. In 2009, the first of the third generation of family members entered the business, prompting Ali and Emine to start putting formal processes in place for the onboarding and integration of the next generation. By 2019, the family office had several billion dollars of assets under management, diversified across various asset classes, both inside and outside Turkey. Emine’s two sons had recently entered the business. Ali and Emine’s biggest priority was establishing strong governance for the family office. They were taking several steps to professionalize the group and bring in more nonfamily members. Ali and Emine recognized that these actions would mean relinquishing certain privileges and freedom, somewhat shifting from their underlying ethos, which focused on protecting shareholders’ individual rights. Shareholders had been offered liquidity and treated like customers, having the option to invest elsewhere if they so desired. To date, the family members had kept their capital within the group. Would this continue to be the case in the future? How could they keep the family together and make sure everyone was financially satisfied? How could they ensure to continue growing the net worth of their assets?

Copyright © 2021 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

It’s All About Family: Esas Group

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