Raising capital from family offices
A Family Office Club member closed an 8 million dollar equity check and a 40 million dollar equity check over about two years. One talk shows the math behind a raise of that size. 48 million dollars equals 960 investor checks of 50,000 dollars each. An anchor investor at half a million dollars can draw in follow-on checks of 50,000 and 100,000 dollars. Another talk covers a multifamily office dinner after the Super Summit that led to $50 million raised.
Family offices also explain how they screen. Sahil says 70 to 80% of deals can be ruled out by checking the stability of the partner bringing them. Barry checks references by asking for introductions to three or four other families who invested as LPs or GPs. Richard C. Richard says he receives 500 to 700 emails a day but only about 7 to 10 voicemails a day. Other pages cover single family office mandates and the Olympus Pines car wash raise.
49 videos, 6 questions and 1 guide on this topic.
Guides
- How to Approach a Family OfficeFamily offices get hundreds of emails a day.
Videos with summaries and takeaways
- 7 Strategies to Raise More Capital with an Investor ClubThe best capital raisers contact 150 to 250 investors to find the 12 who close their deal, according to Richard C.
- Growth Focus Finder: How Family Offices Scale Founder BusinessesPanelists at a Family Office Club event described how they back founder-led companies in the lower middle market, with enterprise values of 20 million up to 100 million.
- How Olympus Pines Raised $500M to Build a Car Wash PlatformTrevor turned down a $15 million term sheet for six car washes before he had built a single one.
- Family Office Trust, In-Person Meetings and AI Due Diligence ToolsMeeting in person makes people 16 times more likely to do business together, according to a study Richard C.
- Ultra-Wealthy Investor Q&A: Family Office Deal Preferences and Crisis PricingFamily offices lean toward direct deals, according to Richard C.
- Multi-Family Office and Wealth Management Panel: Building Trust and CapitalSenior living operators matter more than market studies, according to Jim, who called the operator number one, two, three and four in due diligence.
- European Single Family Office Investor Mandate InterviewA single family office chairman explains why the office was set up for direct investments instead of mainstream private equity.
- How Family Offices Use AI and Data to Evaluate DealsA Family Office Club panel asked investors how they use AI and data in daily work.
- Where Ultra-Wealthy Investors See the Highest DemandTreasury bills and money market funds came up first.
- Raising Capital from Single Family Offices and Ultra-Wealthy InvestorsA member of the Family Office Club landed an 8 million dollar equity check and a 40 million dollar equity check from single family offices after about two years of nurturing relationships.
- How a Family Office Screens Deals and Builds Investor TrustSahil's family office screens deals by checking one thing first: the stability of the partner bringing the deal.
- Inside a Multi-Family Office: Partners, Lending, Next-GenSahil runs a multi-family office in Los Angeles and manages capital for clients around the world.
- How Joel Built a Multi-Country Single Family OfficeJoel, an international tax and corporate lawyer, describes his firm as the defense side of wealth.
- How a Family Office Moved From Real Estate Into 300 Venture DealsIsabelle of a Los Angeles family office explains how a real estate fortune became a venture capital program with over 300 investments.
- How Family Offices and Angels Source Off-Market DealsBlue Startups receives about 600 applications for every session and takes about 10 companies, and its best deals come from referrals.
- How Family Offices and Angels Source Off-Market DealsReferrals and trusted networks are the main deal sources named by an investor panel at a Family Office Club event.
- Family Office Resources: Strategy, Values, Deal Flow and StructureA family office should design its own game board, according to this talk from a speaker with 15 years running an investor club and 13 books written.
- Family Office Investor Mandate: Tech, Fintech and Real EstateMatthew has spent about 20 years as an early-stage tech investor and 30 years in Silicon Valley.
- Multi-Family Office Mandate: Opportunity Zones and Private FundsA multi-family office in Sioux Falls, South Dakota, invests directly in private real estate and private equity.
- Raising Capital from Multifamily Offices: Small vs Large ManagersOne multifamily office guest described a 25 year planning view and a platform of about 120 managers, mostly large and established names.
- Anomaly Deal Flow: How to Find and Attract Better DealsRichard C.
- What Family Office Investors Look For: Deal Sourcing PanelThe panel opens with a concrete picture of what each investor wants.
- Private Investor Panel: Trust, Diversification and Oil and Gas DealsNatalie, Patrick, David and Joe explain how they judge private deals on a panel led by Bill, who works with high net worth clients and family offices at Raymond James.
- Single Family Office Mandate: Healthcare, AI and Distressed Real EstateBarry runs a single family office based in Boca Raton and New York City.
- What Top Investors Look for in Deals and SponsorsDeal sizes of 10 to 50 million dollars for real estate and 2 to 10 million dollars of EBITDA for operating companies come up early in this panel.
- Direct Private Equity Investor Mandate Interview with NadineA family office adviser named Nadine explains how her firm works with families that do not know each other and hold very different mandates.
- Family Office Thinking, Mindset and Adding Value to InvestorsRichard C.
- How Family Offices Train the Next Generation of LeadersRespect for younger family members is the point this Beverly Hills Investor Club Summit panel returns to most.
- Why Investors Want a Family Office: Virtual, Single and MultifamilyA person worth $200 million can walk into a bank and have their money managed, but a bank often designs its offering around its own structure.
- The Power of the Pivot: Family Offices and Founders in the AI EraThe speaker is the managing director of a single family office in New York City, and the career began on Broadway.
- Why Investors Want a Family Office and Which Type FitsA family office exists because wealthy people want more control and a structure built around them.
- Family Office Club Super Summit: Investors and Founders in One RoomThe Family Office Club Super Summit brings family offices, investors and founders into one room, and this highlight reel shows what that looks like.
- Family Office Creation Case Studies and Real Client ExamplesRichard C.
- Biggest Mistakes People Make When Pitching InvestorsTodd runs a relationship-based family office and names one mistake above the rest.
- Sourcing Off-Market Deals and Estate Planning: Family Office PanelA family office panel explains that exclusive deals are seldom handed over and usually have to be found.
- Merchant Bank Mandate: Dan on Surviving and AdvancingDan runs a multistrategy private equity family office that also does merchant banking.
- Private Equity Panel: Hard Lessons on People and Direct DealsOne panelist described a third acquisition, done at the end of 2020, that turned into an expensive lesson.
- A Family Office Investor on Interest Rates, Private Credit and Cash Flow DealsA family office investor describes a portfolio built over 25 years in commercial real estate and finance.
- Raising Capital in a Tough VC Market: Family Office PanelA panel of family office and investor speakers discussed raising capital in a venture market described as being in its third year of the worst conditions for raising funds.
- Capital Raising Success Stories From Family Office Club MembersOne attendee met an investor within the first hour who wanted to put about $5 million into their fund, before they had even spoken on stage.
- A 25-Year Investor on Private Credit, Rates and Raising CapitalA family office investor with 25 years in commercial real estate and finance describes how the portfolio looks today.
- What Is a Family Office and Why Do Ultra-Wealthy Families Want One?A family office is an investment solution for ultra wealthy families, and this talk from a Las Vegas conference defines three types.
- What Family Offices Want From Private Equity Fund ManagersCapital preservation comes first for family offices evaluating private equity fund managers, according to Richard C.
- Why Emerging Fund Managers Struggle to Raise CapitalLarge wealth managers can sit on the sideline, while smaller fund managers cannot.
- Investor Club Update: Mandates and Closings During the PandemicThe Private Equity.com virtual investor club reached 150 investors under contract, according to Richard C.
- Keeping Generations Aligned in a Family OfficeUlie describes biannual family governance retreats that began about 25 years ago and last several days.
- Advanced Investor Strategies and AI Tools for Due DiligenceRichard C.
- Grooming the Next Generation to Help Run the Family OfficeA lemonade stand brought in $55 per day, and a later one brought in $250 per day in just 90 minutes.
- Family Office Service Providers and Partners: What to KnowA motel buyer in this talk found out two weeks after closing that a carbon monoxide leak was not covered by the standard policy.
Questions answered
- 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.
- 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.
- How do I find the decision maker at a family office?Start by meeting the family through advisors, events and the people who manage their investments.
- 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.
- Do family offices invest in funds or only direct deals?Family offices do both.
- How do startups approach a family office for investment?I approach a family office with a relevant introduction, a clear reason for contacting that office, and concise materials that support the company's claims.
- Do family offices invest in early-stage companies?Some family offices invest in early-stage companies, but each office sets its own priorities and requirements.
- How do I find family offices that invest in startups?Start by defining which family offices are most likely to understand your startup and its market.
- How do I get in front of family offices?I get in front of family offices by understanding what they invest in, respecting their time, and building relationships before asking for capital.
Tools for this topic
Common questions
How many investor checks make up a 48 million dollar raise?
48 million dollars equals 960 investor checks of 50,000 dollars each. An anchor investor at half a million dollars can draw in follow-on checks of 50,000 and 100,000 dollars.
Do family offices co-invest alongside other investors?
Yes, many family offices invest alongside other investors. They often feel more comfortable when another respected investor is already in the deal.
How do family offices rule out deals quickly?
Sahil says 70 to 80% of deals can be ruled out by checking the stability of the partner bringing them. Barry asks for introductions to three or four other families who invested as LPs or GPs.
Earlier answers on this subject: Questions about family offices.
