Raising money from Family Offices can be a long process. If not approached in a correct manner. Typically, it's 100% based on relationships and trust.
Family offices are desirable investors, through their evergreen capital structure, know-how and long-term investment focus it makes sense to win them as investors, partners and most of all "Friends". Sounds GOOD, but there’s a catch: family offices are extremely discreet, emotional and selective. Time is a valuable asset, selecting The Right Single Family Offices For Your Project is key.
When you have a specific project or investment opportunity, it is essential to prepare a list of suitable family offices before you contact them. Study the emotional interest within the Families history with specific areas or businesses. When creating the list, quality always beats quantity.
Family offices are notoriously discrete. So much so that one of the most common adages to describe the industry is “a submerged whale does not get harpooned.”
You should look for family investment offices which have previously invested in similar projects or are generally known for their open-minded investment style. Simply sending a generic mass mail to hundreds of family offices is rarely successful. While compiling the list already make notes about the SFOs and their investments – this will help you out later.
To let the Family Office understand that you’re interests are aligned with theirs. That you’re in this for the long term, not just a few transactions. Even if they’re great deals.
Intelligence is a commodity. Integrity is not.
The Light at the End of the Tunnel:
Ultimately, the extra effort required to build relationships with family offices is more than warranted. Family offices bring much more than investable capital to the table — a stable relationship with one can offer the power of a warm introduction and a broader network.
"Many of these family offices are connected with ultra-wealthy family offices and leaders in a variety of businesses.”
A Guide to help your Family Office Journey
- Add value at all times.
- Ask about their goals and objectives.
- Be authentic.
-Ask about what they are currently looking for.
- Do what you say you’re going to do.
- "Trusting is hard. Knowing whom to trust, even harder."
Not to do:
- Don’t pitch them without understanding their goals and objectives.
- Don’t brag about your track record or accomplishments.
- Don’t interrupt them in the middle of a conversation.
- Don’t be aggressive.
- Do exactly what you say you are going to do.
- Meet for coffee or at their office in order for you to understand their goals and objectives better.
- Respect their privacy and don’t share any information about them with anybody else.