Family office Database : Strategies for Building Relationships


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This PowerPoint presentation is from a 90 minute webinar we conducted on family office investment priorities. If you are looking to work with family offices to partner with them or raise capital from them, or if you are using a family office database this information will help make sure you don't waste their time. Everyone is trying to reach out to family offices now, and they are bombarded with irrelevant offers, use this information to be more relevant to them.

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Family office Database : Strategies for Building Relationships

  1. 1. Family Office Investment Preferences By Richard C. Wilson CEO, Family Offices Group
  2. 2. Disclaimer & Limitations Please do not use any advice within this or any other presentation without first consulting your compliance officer or legal counsel. 2
  3. 3. Disclaimer & Limitations Family Offices Group 1. #1 Global Family Office Brand 2. Founded in 2007, 68,000 Members in 50 countries 3. 1,800 Articles, 275 Videos, 50+ Hours of Audio Interviews, & Millions of Views 4. Our resources have been used by over 5,000 family offices globally 5. Face-to-face meetings with over 1,000 family offices in 15 countries 6. #1 bestselling family office book called The Family Office Book: Investing Capital for the Ultra-Affluent 7. We offer the leading family office database at 8. Family Office Certificate Program: Qualified Family Office Professional (QFOP) designation: 3
  4. 4. SFO vs. MFO Models 1. 1 Minute Family Office History 2. SFO vs. MFO 3. Growth of the industry 4. Growing Investor Class & Best Practices
  5. 5. 7 Family Office Investment Priorities 1. Capital Preservation 2. Growth 3. Privacy 4. Taxes 5. Income ($100M+ Change) 6. Time Commitment 7. Privacy 8. Fraud Risk 5
  6. 6. Family Office Investment Committees Family Office Investment Committees 1. SFO 2. MFO 3. Tactical vs. Strategic Teams 6
  7. 7. Types of Investments 1. Operating Businesses (Direct Investing) 2. Real Estate 3. Long Only, Public Market, ETF, Mutual Funds 4. Hedge Funds & CTA Funds 5. Private Equity
  8. 8. 3 Types of Direct Investments 1. Standard Investment Banking Approach (9095% of all offers) 2. Strategic Valuations (Samsung) 3. Futurist Valuation/Mindset (Disney/Kennedy) Note: Many my think strategically but try to buy you out at commodity investment banker prices.
  9. 9. Co-Investments & Club Deals 1. Define Each 2. Creative Terms 3. Immature Space 4. Very under-the-radar 5. Trust and reputation based 6. Specific to certain industries, and geographies Examples: $1B Consumer Product, $1B Commodity Families, $12B EU Family, & 6th Generation Textile Family
  10. 10. Fund Manager Qualification Points 1. Consistency: Stable team, process, and deal types producing current vs. historical returns 2. Authority & Scarcity: Leader & Unique Offering 3. $500M or $1B+ preferred 4. $5B+ sometimes criticized 5. Trust factor is why AUM is so critical for emerging market families 6. The investment process must be understood
  11. 11. Fund Manager Track Record Expectations 1. Private Equity Track Record Expectations: 2.0-2.8x over 5-7 years with some forgiveness certain vintages 2. Hedge Fund Track Record Expectations: Zero in on 2008 & 2001, 5-7+ years, consistent returns and process 3. Real Estate Fund Manager Expectations: More focus on diversity vs. experience in target markets, team, taxation issues, and liquidity/income issues. Must be far above and beyond what a family can pull off themselves, or in a hard-to-access geography. 4. More in a future webinar on these topics.
  12. 12. Real Estate Investments 1. “Simple” Hurdle 2. Apartment Buildings & Hotels Preferred 3. Geographical checkbox or complete diversification mentality 4. Trophy Assets or Networking/Prestige Benefits 5. Professional Teams + Long-Term Track Records are rare 6. Many grow out of needing help
  13. 13. Family Office Partnerships 1. Applies to funds and direct investing 2. Entrepreneurial at heart 3. Protect downside 4. Be Flexible 5. Look for chances to partner, finance/factor, seed, share upside for being first mover, etc.
  14. 14. Trusted Expert Team 1. Market & AUM to Team Match 2. Feet on the ground analysis, $300M hedge fund example 3. Deal-sourcing is critical but professionals with connections that can lead to exits is often seen as more important by investors in my experience. 4. The relationship matters 5. Celebrity factor, industry titans, recognized investor names, well respected professors, royal family connections can help open doors with certain families
  15. 15. Crystal Clear Advantage 1. 2,000+ pitches a year 2. 86% of investors won’t invest in something they don’t understand. 3. Half of all “passes” on a strategy are due to educational barriers. 4. Geographical & Sandbox Family Focus 5. Families are fee sensitive
  16. 16. First on the Beach 1. Open to Create arrangements 2. In private equity Fund #3 or Fund #4 or later most well received, for hedge funds 5 year track record is the standard. 3. Prove the concept, market, business plan 4. Capital preservation is their chief concern, not a timeline to allocate or checkbox forced allocation to a region 5. Don’t kill my money (Kevin O’Leary)
  17. 17. Long-Term Perspective on Strategy Reverse cognitive bias How you do one thing is how you do everything
  18. 18. Listening Nobody Listens Be Influenced to Influential Take Notes, Repeat Back Follow Up Carefully and Reply to Requests
  19. 19. Family Offices Group Offerings If you are setting up a family office, need help with family office marketing, or other advisory work please send an email to If you are looking for a family office database please see We offer the following resources on family offices: 1. Qualified Family Office Professional (QFOP): 2. Family Office Monthly Newsletter: 3. Family Office Webinar Series: 4. Family Office Workshop Series: Http://
  20. 20. Questions? Richard C. Wilson CEO/Founder Family Offices Group New York Singapore London Portland, Oregon United Airlines Sao Paulo, Brazil