Raising capital from family offices
How do I find the decision maker at a family office?
Short answer
Start by meeting the family through advisors, events and the people who manage their investments. Then ask plainly who weighs in on a deal. Often more than one person does. Do not dismiss a son or daughter as the wrong contact, because they may carry real influence. Build trust and stay patient. Many sponsors also talk to a securities attorney about how they approach investors.
I would not assume the first person you meet is the one who signs the check. At a family office, the decision often sits with a group. It can include the head of the family, a chief investment officer, a spouse, an adult child and outside advisors. Your first job is to learn how that group works.
Ask who weighs in, then listen
The simplest method is to ask. Ask the person you are speaking with how the family looks at a deal like yours. Ask who else would want to see it and what they care about. Many people answer openly when the question is respectful and curious.
Some family offices have one point of contact whose job is to manage the communication and the administration around an asset. That person is a gatekeeper, and often a useful route in. Treat them with respect.
In this panel, a family office investor explains why you should know the family you are talking with and be patient with how they decide.
The son or daughter might matter more than you think
One complaint comes up again and again. Someone meets a son or daughter of a family and later says this.
"Oh, you're not the decision maker. Wish you told me that upfront. What a waste of time."
I see it differently. In my experience, that meeting could be the start of a relationship with a family that later makes a large investment. The next generation often has a voice in the room, and sometimes the family is not yet clear on what it wants to invest in. Rushing past the person in front of you can cost you the whole relationship.
Build the relationship before you pitch
Investors tell me the same thing at our events. Create a relationship before you pitch a deal. That does not mean you never pitch. It means that without context, they do not care about your deal yet, because they do not know you and you do not know them.
This clip covers why building the relationship first matters when you meet a family office.
Here is what I would do in practice.
- Learn what the family is passionate about before you ask for anything.
- Respect their time and keep your follow up polite and steady.
- Lead with education, because people are curious and want to learn.
- Treat them as people, not as a source of money.
I also pay attention to where they get their ideas. I once saw a survey saying 30% of institutional allocators are influenced by content they read on LinkedIn. I would guess the number is higher for family offices. Useful posts and white papers can put you in front of the right people before you ever send a message.
A caution on how you reach out
Questions about who to approach and how to describe an offering vary a lot from one situation to another. Many sponsors talk to a securities attorney before they start contacting investors about a raise. Finding the decision maker is a relationship skill. It does not replace the legal side.
What I wrote about this
Do not judge a family office by the size of its team. Some have only 2 to 4 professionals at the office level, while the family may own operating businesses with thousands of employees. A two person office can still be worth a great deal, so a small team is no reason to move on. Also ask whether the family has a governance policy. A good one spells out who can change the portfolio allocation, who approves hires and who decides distributions. If they have one, ask to understand how it works, because it tells you who really decides.
"Family office teams are usually pretty small. It's important to note that some family offices will only have 2 to 4 professionals at the family office level, while one might have 2,000 employees within their operating businesses. So they might say, "Oh, I've got a two person family office." It doesn't mean that they're not worth a lot."
"Each family office should have a thorough governance policy to help communicate how decisions are made. This document should outline who has the power to make hiring decisions, investment portfolio allocation changes, compensation adjustments, and profit distributions from the family office to family members as well as when the next generation of the family is to receive capital and learn the process for those distributions."
Facts and figures
- A survey of institutional investors said 30% of allocators are influenced by content such as white papers read on LinkedIn, and I guessed family offices are at 50% or higher.
- One Los Angeles single family office built first generation wealth in real estate development and began adding outside investor capital about 7 years before the interview.
- I have run the Family Office Club community for 18 years and hosted 300 live events.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: $100M & $1B+ Single Family Office Investor Mandates & Strategies, How This Family Office Invested in 300 Startups & Built a Town for AI, $100M & $1B+ Single Family Office Investor Mandates & Strategies. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around investor outreach rules, offering descriptions and raise compliance. Do not use AI to write your own legal agreements.
Where to start
- 1List everyone at the family office who could influence an investment, including family members and advisors.
- 2Ask your first contact who else would want to see a deal like yours.
- 3Take meetings with next generation family members seriously.
- 4Share useful education before you share a pitch.
- 5Consider talking to a securities attorney about how you approach investors.
People also ask
Should I ask directly who the decision maker is?
Yes, but ask it as a question about how the family looks at deals. Asking who else would want to see the deal is polite and gets a useful answer.
Is it a waste of time to meet a son or daughter of the family?
I do not think so. That relationship could lead to a large investment later, and the family may not yet be clear on what it wants.
Can I pitch my deal on the first meeting?
You can, but investors tell me they care more once they know you. Build context first, and many sponsors talk to a securities attorney about how to describe a deal.
Related questions
- What is the difference between single and multi-family offices?A single family office works for one family and is built the way that family wants.
- Do family offices co-invest alongside other investors?Yes, many family offices invest alongside other investors, and they often feel more comfortable when another respected investor is already in the deal.
- What deal sizes do family offices typically write?There is no single typical size.
- How long does a family office take to make a decision?There is no standard timeline, and I would not trust anyone who gives you one number.
Work through it with the data room checklist. See all raising capital from family offices resources.