$7B Multi-Family Office Mandate: Direct Deals and Distress
$7B+ Multi-Family Office, Private Equity, & Fund Manager Investor Mandate Interview
Family office principals, wealthy investors and capital raisers who want to see how a multi-family office approaches direct deals and distressed opportunities.
What stood out
- Direct deals need a built team. Paul's firm has invested directly in real estate, private equity and private credit for about 10 years. It built a team that can source, originate, negotiate and structure deals, then help monitor them.
- Clients are often money managers. Paul says the typical client is a money manager. These clients want non-traditional exposure and want to get closer to the asset.
- Most clients want distressed exposure. Paul says the overwhelming majority of clients want to take advantage of the current dislocation. Options include distressed private equity funds, distressed real estate funds, direct distressed lending and direct equity in assets.
- Prepare before the crisis. Paul says the plan starts well before a downturn. In his experience, family offices hold more cash than in 2008 and 2009, and good asset allocation keeps pockets of liquidity reserved for these opportunities.
- Manage at the margin. Paul says it is very hard to pick tops and bottoms. The firm does not go all in or all out. It adjusts at the margin and looks for the right partner instead of judging opportunities in isolation.
Summary
Paul's firm is a multi-family office advisor based between Boston and London. It manages about seven billion dollars for about 40 families globally. Most of its clients make direct investments in real estate, private equity and private credit, and the firm has done this for about 10 years. Paul says many clients are money managers themselves, so they want non-traditional exposure and a closer view of what they own.
Richard C. Wilson asks how the firm handles the current market dislocation. Paul says most clients want to act on it, through distressed private equity funds, distressed real estate funds, direct lending and direct equity in assets. He explains that preparation starts before a crisis, with cash and reserved pockets of liquidity. His closing advice is that deals take more money and time than expected, so position size matters.
On the record
- Paul's firm manages about seven billion dollars for about 40 families globally.
- The firm has invested directly in real estate, private equity and private credit for about 10 years.
- Paul compares today with 2008 and 2009 and says family offices now hold more cash.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: $7B+ Multi-Family Office, Private Equity, & Fund Manager Investor Mandate Interview. 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.
In their words
"It's very hard, as we all know, to pick tops and bottoms."
"You just want to be on the right side of the smile."
"Thinking really about not betting the farm on, you know, is this the bottom or is this the right manager, but you know, size your positions accordingly."
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What does Paul's firm do?
It is a multi-family office advisor based between Boston and London. It manages about seven billion dollars for about 40 families globally and oversees their broader wealth and aggregate balance sheet.
How does the firm handle not knowing where the market bottom is?
Paul says the work starts before a crisis. The firm keeps pockets of liquidity reserved and manages at the margin instead of going all in or all out.
What is Paul's number one piece of advice?
Things always take more money and more time, and it all comes down to position sizing. He advises against betting the farm on one bottom call or one manager.
Put this into practice with the family office fit check. See all investor mandates resources.
