Raising capital from family offices
How a Family Office Screens Deals and Builds Investor Trust
How to Get Meetings + Deals Completed with Most Valuable Investor Types | Sahil Nandwani
Capital raisers who pitch family offices and want to know how an investor screens deals, judges partners and reacts to follow-up.
Said on the call
"You've got to think about it from the perspective of somebody who has never heard of this before because you may have a fantastic deal with a fantastic structure."
"You can have the worst deal in the world, but if you have a good partner, you've got a trustworthy partner."
"Everything needs to be actively managed. Everything needs to be properly curated because so many more people have money."
The short version
Sahil's family office screens deals by checking one thing first: the stability of the partner bringing the deal. Sahil, a managing partner at a Los Angeles family office, says 70 to 80% of what he sees can be ruled out on that point alone. He says a trustworthy partner protects you even if a deal goes sideways, while an unreliable one makes every part of a good deal painful.
The talk was recorded at a Family Office Club event, with Richard C. Wilson asking the questions. It also covers follow-up habits, in-person meetings and a strong pitch from Better Bath Better Body. Sahil says at least 50 to 60% of people fail to follow up. He also explains why raisers should prepare for the questions of someone who has never heard of the deal.
From the source
- Sahil says at least 50 to 60% of people do not take the extra step of following up.
- Sahil says 70 to 80% of deals can be ruled out by checking the stability of the partner bringing them.
- Sahil suggests waiting two or three days before a second text to someone who has not replied.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How to Get Meetings + Deals Completed with Most Valuable Investor Types | Sahil Nandwani. 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.
5 key takeaways
- Screen the partner first. Sahil says 70 to 80% of deals can be knocked out by judging the stability of the counterparty. A good partner can carry a weak deal, and a poor partner can ruin a strong one.
- Prepare for a newcomer's questions. Sahil says people anticipate too little. A raiser who knows the deal well glosses over details, so it helps to think like someone who has never heard of it. Reading the pitch out loud can reveal gaps.
- Follow up, but give people space. Sahil estimates at least 50 to 60% of people never take the extra step of following up. Too much follow-up also hurts. After a text, he suggests waiting two or three days.
- Meet in person when you can. Zoom and calls help, but Sahil says nothing beats an in-person meeting. Connections formed outside the work setting mean more to him than video calls.
- Show clear market positioning. Sahil praised a Better Bath Better Body pitch that stated its market position up front. It made clear that almost all inventory and raw materials came from inside the United States.
Related questions
- 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 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
How does Sahil quickly screen deals?
He looks first at the stability of the partner or counterparty bringing the deal. He says this rules out 70 to 80% of what he sees.
How often should you follow up with an investor?
Sahil says to give people room. After a text with no reply, he suggests waiting two or three days. He finds constant repeat messages so annoying that he may stop wanting to do business.
Why does Sahil value in-person meetings?
He says personal connections formed outside the work setting mean more than Zoom meetings. Remote calls still help, but they do not replace meeting face to face.
Put this into practice with the investor meeting follow-up checklist. See all raising capital from family offices resources.
