Raising capital from family offices
How Family Offices Use AI and Data to Evaluate Deals
How Family Offices Use AI & Data to Evaluate Deals (Investor Panel)
Family office investors, fund managers and capital raisers who want to see how peers apply AI and data tools to investor research and deal review.
The short version
A Family Office Club panel asked investors how they use AI and data in daily work. Michael runs an AI bot around the clock that builds a one-page brief on a potential investor before a meeting. He still prefers to meet investors in person and bring them to sites. Another panelist described using data mining tools to review 2,300 construction projects, with document sets from 10 GB to a few terabytes.
Justin said his team uses AI for workflow automation and underwriting support but does not let it replace judgment. Peter described a Claude plug-in for Microsoft Excel that he said handles financial modeling in 10 or 15 minutes. Paul explained a double vetting process for startups. Chris described how a private equity secondaries buyer underwrites each holding inside a fund before bidding.
- 1Value each underlying holding from financials
- 2Assume some companies go to zero
- 3Review how the GP marks assets
- 4Discount the bid if marks are aggressive
- 5Buy at a discount, collect cash early
The 5 big lessons
- AI prepares, people still meet. Michael uses an AI bot that runs 24/7 and produces a one-pager on a potential investor. It is ready before the meeting, so he does not need to do a lot of Google searching. He says relationships are still built in person.
- Data mining for large document sets. One panelist's group is reviewing 2,300 construction projects around the country. The files range from 10 GB up to a few terabytes. Data tools help them find projects with enough merit to justify an investment.
- AI supports but does not decide. Justin uses AI for daily operations, workflow automation and underwriting support. The one thing his team does not do is let it replace their judgment. The information is used to make the right choice.
- Vetting every deal twice. Paul said 95% of startups fail, so his fund requires a lead investor it trusts. Deals also go through its own screening and due diligence. Recommendations come from investors in the fund, and he reported 200 investments in eight years with 12% written off.
- Underwriting each holding from the bottom. Chris values every underlying company in a fund from its financials up. Some are assumed to go to zero. His team also reviews whether the general partner marks the portfolio aggressively or conservatively, and discounts its bid if so.
In their words
"We have a detailed underwriting model that values every underlying holding in the portfolio company."
"the one thing we don't do is allow it to replace our judgment. At the end of the day, we're using that information to make the right choice."
"we can look not at what they're going to invest in, but what they actually own today."
From the source
- One panelist's group is reviewing 2,300 construction projects, with document sets from 10 GB to a few terabytes.
- Paul reported 200 investments over eight years with 12% written off, using a lead investor requirement and a second internal screen.
- Chris said he buys private equity portfolios that are often around 10 years old and in liquidation mode, at prices such as 61 cents on the dollar.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How Family Offices Use AI & Data to Evaluate Deals (Investor Panel). 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.
- 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 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.
Questions about this video
How does one panelist use AI before investor meetings?
Michael has an AI bot that runs 24/7 and creates a one-page summary on a potential investor. It is ready right before the meeting. He still builds relationships in person.
Do these investors let AI make the investment decision?
No. Justin said his team uses AI tools for operations and underwriting support, but does not allow them to replace their judgment. Chris also relies on a detailed underwriting model for each holding.
What did Peter say about the Claude plug-in for Excel?
Peter said his team had used it for about two weeks. He said it can do financial modeling in 10 or 15 minutes that might take an analyst about 10 days.
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