Raising capital from family offices
Multi-Family Office and Wealth Management Panel: Building Trust and Capital
Multi-Family Office & Wealth Management Firm Investors: How is the industry changing and learn wh...
Capital raisers, emerging managers and real estate sponsors who want to build relationships with wealth managers, multi-family offices and their advisers.
Worth quoting
"the operator in the senior living space is the tail that wags the dog. It's all about them."
"you have to do what you say a whole bunch of times before somebody actually believes that you're going to do what you say the next time."
"I find that most investment firms and wealth management firms and most people raising capital are about a decade behind on using tools."
Summary
Senior living operators matter more than market studies, according to Jim, who called the operator number one, two, three and four in due diligence. The panel of multi-family office and wealth management voices also covered how to reach advisers, CPAs and angel groups. Bo, Molly and Nick each stressed long-term relationships over one-off deals, and Richard C. Wilson added notes on fee structures and emerging managers.
Richard C. Wilson said wealth managers and investment firms are about a decade behind on tools such as CRMs and social media. Molly described thought leadership as a way to attract business owner clients. Jim urged raisers to understand the wider context before pitching, noting that large firms are telling limited partners 13 to 15% may be a good return. On market cycles, the panel favored assets that can be held for a decade.
Facts from this talk
- Jim said large firms such as BlackRock and Apollo are telling limited partners that 13 to 15% may be a good equity return over the next 10 years.
- Molly said her team posts two or three times a day on social media and books a stage a week using about an hour a week.
- Richard C. Wilson said he has spoken at and hosted 250 events over the last 12 years.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Multi-Family Office & Wealth Management Firm Investors: How is the industry changing and learn wh.... 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 manager fee structures, offering documents and adviser communications. Do not use AI to write your own legal agreements.
Five points worth keeping
- Trust takes repeated follow-through. Nick said trust takes a long time to build. Investors must see you do what you say many times. His firm grew through family office introductions that became a network over time.
- Influencers need comfort too. Bo noted that a CPA or tax attorney often knows little about the deal itself. Raisers need to make these influencers comfortable with the subject matter expert. A deal that looks fly by night or one-time is often shut down.
- Operators drive senior living deals. Jim said real estate is local, but the management team at each facility matters most. He looks for operators who have run dozens of communities. Values and leadership of senior management come first.
- Thought leadership attracts clients. Molly said her team speaks across the country and posts two or three times a day on social media. Richard C. Wilson added that most firms lag on CRMs and social media, which leaves room for those who adopt them.
- Hold through market cycles. Panelists said timing the market is difficult. Richard C. Wilson noted many family offices now assume they may hold an allocation for 12 to 15 years. Another panelist said to buy things you do not mind holding for a decade.
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.
- 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 should a family office check first in a senior living deal?
Jim said the operator and the management team come first. He looks for operators that have run dozens of communities. The local market study matters, but the leadership's values and vision matter more.
How can a raiser work with a CPA or tax attorney who advises an investor?
Bo said these advisers are influencers who often know little about the specific deal. Raisers should help them get comfortable with the subject matter expert. Openness, transparency and a long-term commitment help.
How did Richard C. Wilson suggest new managers set fees?
He suggested that new managers consider a lighter fee approach than usual to earn trust. He said typical fees can be a tough sell for a new firm, and many managers talk to a securities attorney about how to structure them.
Put this into practice with the investor meeting follow-up checklist. See all raising capital from family offices resources.
