Billionaire Jorge Pérez and His Sons: The Three Secrets to Passing Down the Family Business

In the world of family-owned businesses, the transition of leadership and ownership from one generation to the next is a delicate dance. It requires a blend of strategic planning, emotional intelligence, and a deep understanding of the family's values and legacy. Billionaire Jorge Pérez, the founder of Related Group, and his sons, Jon Paul and Jorge Jr., have mastered this art. Their story is a testament to the power of philanthropy, stewardship, and multigenerational involvement in ensuring the long-term sustainability of a family business.



The Pérez family's journey began in the late 1970s when Jorge Pérez, a son of parents exiled from Cuba, linked up with Stephen Ross and his affiliated Related Companies. The Related Group, founded in 1979, began with a focus on building affordable housing before branching out to high-end condos. Today, the Florida-headquartered company has built and managed over 100,000 condo and apartment residences, including the St. Regis Residences in Miami, SLS Marina Beach in Cancun, and V:House in São Paulo.

The Pérez family's philanthropic efforts have significantly influenced their business strategy and long-term sustainability. They have given away over $214 million to organizations focused on arts and culture, health and wellbeing, education, the environment, and economic development. This philanthropy has not only benefited the community but has also enhanced the family's standing in society, which can translate into better business opportunities and partnerships.

One of the key strategies the Pérez family has implemented to ensure a smooth transition of leadership and ownership is the establishment of the Jorge M. Pérez Family Foundation. Launched in 2015, this foundation aims to promote sustainable, inclusive, and just communities. By involving the next generation in the foundation's activities, the Pérez family has fostered a sense of responsibility and commitment to the family's values and philanthropic efforts. This involvement helps to prepare the next generation for leadership roles within the family business.

Another strategy is the multigenerational approach to philanthropy. The Pérez family's giving extends beyond the current generation, with the next generation introducing new directions to the family's philanthropic efforts. This approach ensures that the family's values and legacy are preserved and passed on to future generations. For example, Jon Paul Pérez, the son of Jorge Pérez, was initially surprised when his father did not immediately offer him a job at the family business. However, this decision allowed Jon Paul to gain valuable experience and develop his own skills and interests before taking on a leadership role within the family business. This approach ensures that the next generation is well-prepared to take on leadership roles and continue the family's legacy.

Additionally, the Pérez family has emphasized the importance of community involvement and social responsibility. Through their philanthropic efforts, the family has demonstrated a commitment to giving back to their local communities and supporting causes that align with their values. This commitment to social responsibility helps to build a strong reputation for the family and the business, and it also helps to foster a sense of loyalty and commitment among employees and stakeholders. By involving the next generation in these efforts, the Pérez family has ensured that their values and legacy are preserved and passed on to future generations.

In conclusion, the Pérez family's approach to passing down the family business is a model for other family-owned enterprises. Their commitment to philanthropy, stewardship, and multigenerational involvement has ensured the long-term sustainability of their business and the preservation of their family's values and legacy. As the world of family-owned businesses continues to evolve, the Pérez family's story serves as a reminder of the importance of strategic planning, emotional intelligence, and a deep understanding of the family's values and legacy in ensuring the success and longevity of a family enterprise.