Raising capital from family offices
Inside a Multi-Family Office: Partners, Lending, Next-Gen
Inside a Modern Multi-Family Office: Global Investing, Deal Structuring & Next-Gen Insights
Sponsors, fund managers and capital raisers who want to understand how a multi-family office picks partners and how to build trust with family office investors.
Summary
Sahil runs a multi-family office in Los Angeles and manages capital for clients around the world. In a fireside chat with Richard C. Wilson, he explains that character comes first when choosing partners. He describes a deal that went wrong, where he was paid out with a small profit, and later returned as the lender when the sponsor refinanced its seller financing.
The talk also covers how to approach next-gen family members, why narrow thought leadership gets attention, and why family governance is a large cultural shift for many families. Sahil says AI tools have cut his research time, and he hopes to grow in multifamily construction, development and hospitality. Richard adds that sponsors often convert better when they educate rather than pitch.
5 key takeaways
- Partner quality can matter more than deal quality. Sahil says a great deal with a bad partner can leave you stranded. A poor deal with a good partner can leave you looked after when problems come.
- Speak the second-level language. Mentioning more advanced industry terms can signal experience. Sahil says he does this on purpose to build rapport.
- Get specific with thought leadership. Sahil says the broader a topic is, the less he learns from it. He would read a piece on a specialized, narrow topic before a basic overview piece.
- Tailor your approach to each family member. Sahil says you need to find what each person cares about, such as Broadway for his sister or numbers for him. This can take a long time, which is why repeat events help.
- Educate instead of pitching. Richard says education is often a more effective pitch for sponsors. Sahil adds that he likes investments where he can learn, with regular calls and site visits, even as a silent investor.
Quotes from the session
"If you are in the worst deal in the world and you've got a wonderful partner, you know you're going to be taken care of when the bad things come."
"I very firmly believe that philanthropy is a privilege earned by wealth creators."
"the broader that a topic is, the less I'll learn from the particular video or piece of content."
From the source
- Sahil became the lender on a deal that had earlier paid him out, and about two months remained on the term.
- Sahil says running a 100-question due diligence questionnaire through ChatGPT can stand in for about 100 Google searches, in his experience.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Inside a Modern Multi-Family Office: Global Investing, Deal Structuring & Next-Gen Insights. 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 lending and lien structures, family office structuring and offering documents. Do not use AI to write your own legal agreements.
Related questions
- 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 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.
- How do I find the decision maker at a family office?Start by meeting the family through advisors, events and the people who manage their investments.
Questions about this video
What does Sahil look for first in a partner?
He asks whether they are good people to do business with and whether the fit is cultural. He says a good partner protects you when a deal goes wrong.
What kind of credit investments does Sahil prefer?
He prefers the safer hard asset side, which in practice means real estate. He notes that some lenders can be reluctant to finance such assets, so owners sometimes look at other sources of financing.
How should you work with older family members and next-gen investors?
Sahil says not to shy away from extra face time, since older family members value it. With next-gen members, learn what they care about and tailor the conversation to it.
Put this into practice with the family office fit check. See all raising capital from family offices resources.
