Investor Mandates and Creative Deal Structures: Family Office Panel
Investor Mandates & Creative Deal Structures: Family Office Panel
Capital raisers, startup founders and real estate sponsors who want to understand how family offices set mandates and structure deals.
What to take from this talk
- Mandates differ by family and region. Bill says trends vary by location. In his experience, Northeast investors tend to favor Wall Street while investors west of the Rockies often favor real estate or operating businesses. His role is often to push families toward diversification.
- Real estate deals can be non-standard. The real estate panelist says none of the 30 deals done so far this year look alike. The firm does not use a one-size approach and treats each deal on its own terms.
- Revenue sharing can replace rent. For Chicken and Pickle, the family already had the land. Instead of taking a large rent, it shares in the revenue and also does reverse build to suit. The concept now has 20 locations nationwide.
- Listening creates deal flow. The pickleball deal began as a casual chat while scuba diving. The panelist says that without listening to the founder talk about pickleball, the relationship would not exist.
- Alternatives allocation keeps rising. A survey cited in the panel shows a shift from 70/30 stocks to bonds twenty years ago to 53% stocks, 26% alternatives and 21% bonds today. Foundations under $25 million hold less than 1% in alternatives, while $1 billion foundations hold more than 35%.
What you will hear
A family office panel opens with a speaker's claim that 80% of the money in the United States sits outside banks, stocks and bonds. Four panelists then describe what they look for. Two manage portfolios of about $2 billion focused on real estate. One advises families on diversification. Another builds document tools for lenders. Interests named include multifamily, hospitality, proptech, fintech, AI, energy storage and seed and Series A technology.
The second half covers deal structure. One panelist describes a pickleball concept built on land the family already owned, with revenue sharing in place of heavy rent. Another shares survey data on how foundations and private clients allocate to alternatives. The moderator closes by sorting family office decisions into three buckets: real estate, operating cash flowing businesses and IP.
From the source
- A survey cited by one panelist shows endowment allocation moving from 70/30 stocks to bonds to 53% stocks, 26% alternatives and 21% bonds.
- The panelist says banks do about 20% of lending in the United States and that 80% is now private.
- Chicken and Pickle uses a revenue sharing model on land the family owned and has 20 locations nationwide.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Investor Mandates & Creative Deal Structures: Family Office 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.
Talk to a securities attorney to explore options around alternative fund structures, investor eligibility rules and revenue sharing agreements. Do not use AI to write your own legal agreements.
Said on the call
"So 80% of the money in the United States is outside of banks and stocks and bonds, which is why we're all in this room right now."
"So if you stacked up the 30 deals we've done so far this year, none of them are the same at all."
"I think this is the time to strike, at least for us."
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What are the three buckets family offices invest in?
The moderator says family office decisions fall into three buckets. They are real estate, operating cash flowing businesses and IP.
How did the Chicken and Pickle deal work?
The family had land and the founder had a pickleball idea. Instead of charging a large rent, the family shares in the revenue and also does reverse build to suit. The concept has grown to 20 locations.
Why are foundations said to be underallocated to alternatives?
One panelist says foundations under $25 million hold less than 1% in alternatives. He says liquid alternatives exist that many foundations are unaware of.
Put this into practice with the family office fit check. See all investor mandates resources.
