The present study investigates exit patterns in family business portfolios in times of declining performance. Drawing on social identity theory and a sample of six family business portfolios from Pakistan, we reveal that business families often prefer shutting down satellite portfolio firms rather than selling them. This is found to be mainly driven by the identity fit of the family and the satellite business and the desire to restart it at a later point in time. This study contributes to literature on portfolio entrepreneurship, business exit, and long-term success and endurance of family firms.