Raising capital from family offices
What Family Office Investors Look For: Deal Sourcing Panel
How Top Investors Access Hidden Deals Before They Hit the Market
Sponsors and fund managers who want to see what family offices and private investors say they are looking for before they pitch.
What you will hear
The panel opens with a concrete picture of what each investor wants. Impax Capital Group is a Houston single-family office with a $2 billion portfolio. It looks mainly at multi-family residential or commercial real estate in the roughly 10 to 50 million dollar range. Its venture arm, Gurukul Ventures, backs early-stage technology companies at the angel or Series A stage and has done about 75 deals.
Other panelists describe different targets. One runs Windward Equity and uses an AI tool set from Cube Dynamics, which the guest says has helped some companies grow their revenue. Another comes from the Nathan family office, which built a private index fund of alternative and emerging assets. Moderator Mark, of Deep Due Diligence Investors, saves the main question about sourcing hidden deals for the next episode.
Five points worth keeping
- Know the deal size first. Impax Capital Group says its typical real estate transaction is roughly 10 to 50 million dollars. It focuses on multi-family residential or commercial properties. Sponsors can match their deal to a stated range before they pitch.
- Early-stage tech wants revenue. Gurukul Ventures looks for companies that already have revenue, though they do not need to be profitable. It often enters at the angel or Series A stage. It is open to disruptive ideas that challenge existing business structures.
- Distress and low cost housing. One family office says it is looking for distressed assets and low-cost multi-family housing. It wants deals it can enter below market value. It also describes a large position in manufactured housing.
- Growth is not the same as scale. A Windward Equity guest defines growth as revenue and cost rising at the same rate. Scale is when the top line grows faster than expenses. The guest wants founders out of day-to-day work so they can work on the business.
- Networking still matters. One guest says networking and people are the most important component of sourcing deals. The same guest notes that many groups talk about removing humans from the process. A strong network is seen as the counterweight.
In their words
"Growth is when your revenue and your cost increase at the same rate. Scale is when you disconnect the two, and your top line grows faster than your expenses."
"We think networking and people are the most important component."
"I don't want them working in the business. I want them working on the business."
From the source
- Impax Capital Group is a single-family office in Houston that manages a $2 billion portfolio.
- Impax's typical real estate transaction is roughly 10 to 50 million dollars.
- Gurukul Ventures has done about 75 deals, often at the angel or Series A stage.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How Top Investors Access Hidden Deals Before They Hit the Market. 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.
Related questions
- 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.
- Do family offices invest in funds or only direct deals?Family offices do both.
Questions about this video
What deal size does Impax Capital Group target in real estate?
The guest from Impax says its typical transaction is roughly 10 to 50 million dollars. It looks at multi-family residential or commercial opportunities.
What stage does Gurukul Ventures invest in?
Gurukul Ventures often comes in at the angel investment stage or the Series A stage. It prefers companies that already have revenue, even if they are not yet profitable.
What is the difference between growth and scale in this panel?
A Windward Equity guest says growth is when revenue and cost increase at the same rate. Scale is when the two disconnect and the top line grows faster than expenses.
Put this into practice with the family office fit check. See all raising capital from family offices resources.
