Raising capital from family offices
Family Office Resources: Strategy, Values, Deal Flow and Structure
Private Investor & Family Office Resources
Founders, new family office principals and capital raisers who want practical ideas on setting up a family office, sourcing deals and building trust with investors.
Said on the call
"The point of the family office is to have control, have focus, have someone playing defense for you so you can focus on offense or the things you love."
"If you take a really great deal and structure it poorly, then it's a really bad deal."
"The more we give away, just like anyone who runs a podcast, the more relationships we grow and the more great people we get to meet and work with over time."
What you will hear
A 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. The talk describes a free family office dashboard with 67 fields, a list of 50 questions to ask before choosing advisors, and the idea of writing family values on a wall at home. A lemonade stand story shows how the speaker teaches children to earn what they want.
The second half covers how wealthy families organize assets into three buckets: diversified market exposure, conservative cash flowing real estate, and one or two operating niches. The speaker also covers seeing more deals, building a direct buy box, buying strategic choke points such as billionaires.com, and structuring deals well. The club gives away most of its education for free, after once charging $7,000 a month to set up family offices.
Facts and figures
- The free family office dashboard has 67 fields.
- The speaker bought billionaires.com for half a million dollars after a seller had asked for 1.2 million for over a decade.
- The speaker's firm once charged $7,000 a month to set up family offices, then moved to helping for free.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Private Investor & Family Office Resources. 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 deal structure options, royalty arrangements and family office setup. Do not use AI to write your own legal agreements.
What stood out
- Design your own game board. The speaker says a family office should be built around the family's strengths, values and goals. If the family does not design it, an advisor will, and it may mainly collect fees. The speaker suggests answering about 50 questions before choosing a platform.
- Put family values on the wall. Most companies have values, but the speaker saw only about 8 percent of the room with written family values. The speaker keeps the family's values on the kitchen wall and says the practice costs nothing.
- Use three buckets for wealth. The speaker describes diversified market exposure first, then conservative cash flowing real estate, then an operating business area. The more focused buckets give the family more control. Effective families often focus on one to three niches.
- Increase deal flow and buy box clarity. Seeing 30 deals in three years makes it hard to find the top one percent. Seeing hundreds or thousands raises the odds. A direct buy box and a mapped universe of targets, like 400 dry cleaners in Austin, help source off market deals.
- Structure can change a deal. The speaker says a mediocre deal with strong structure can work well, and a great deal with poor structure can be bad. Structure is a topic many families review with their own advisors. The talk mentions gross revenue royalties used in 13 medical practice deals and points to a five and a half hour workshop on structure. Many sponsors talk to a securities attorney about how to structure deals like these.
Related questions
- 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.
- What deal sizes do family offices typically write?There is no single typical size.
- 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.
Questions about this video
What is the free family office dashboard?
It is a free tool with 67 fields. If a family cannot fill in a field, it points to the homework still needed, such as better service providers or other planning topics families may discuss with their advisors.
What are the three buckets of wealth described in the talk?
The first is diversified market exposure, the second is conservative cash flowing real estate, and the third is an operating business area. The third bucket usually focuses on one or two niches.
What is a strategic choke point?
It is an asset that makes later progress faster once you own it. Examples given include billionaires.com, a book called how to start a family office, and a dental social media group with 375,000 members.
Put this into practice with the family office fit check. See all raising capital from family offices resources.
