Raising capital from family offices
Raising Capital from Single Family Offices and Ultra-Wealthy Investors
Raising Capital from Single Family Offices & Ultra-Wealthy Investors
Founders, fund managers and deal sponsors who want to raise capital and are weighing whether to build relationships with single family offices.
Quotes from the session
"Many times, if you're able to bring in an investor for half a million dollars, the fifty and hundred thousand dollar checks will follow."
"You should look at who you are, where you're based, what industry you're in, what assets you're investing in."
"I think four to seven years from now, the people who are investing time right now in the family office space are going to be greatly rewarded."
Summary
A member of the Family Office Club landed an 8 million dollar equity check and a 40 million dollar equity check from single family offices after about two years of nurturing relationships. Richard C. Wilson uses that case to show the math. Raising 48 million dollars in 50,000 dollar checks would mean closing 960 investors. Single family offices often manage 20 million to 100 million dollars or more.
Richard also explains how to pick the right family offices. He starts with those close to your industry, your assets and your location. He then suggests finding an anchor investor, since smaller checks tend to follow a larger one. He closes with the long game. Building specialized knowledge and face to face relationships now, in person or on Zoom, may pay off over the next four to seven years.
Facts from this talk
- A Family Office Club member closed an 8 million dollar equity check and a 40 million dollar equity check over about two years.
- 48 million dollars equals 960 investor checks of 50,000 dollars each.
- An anchor investor at half a million dollars can sometimes draw in follow-on checks of 50,000 and 100,000 dollars.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Raising Capital from Single Family Offices & Ultra-Wealthy Investors. 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 investor eligibility rules, offering documents and terms by check size. Do not use AI to write your own legal agreements.
What to take from this talk
- Few large checks beat many small. A Family Office Club member closed an 8 million dollar check and a 40 million dollar check. Raising the same 48 million dollars at 50,000 dollars each would take 960 investors.
- Expect the process to take time. The member needed about two years to build those relationships. Richard says it might take four months, nine months, four years or nine years, and results vary.
- Start with investors close to you. Look at where you are based, your industry, your assets and where those assets sit. Family offices nearby and in the same industry already speak your language, so things move faster.
- Bring in an anchor investor. In Richard's experience, an investor at half a million dollars can often help smaller checks of 50,000 and 100,000 dollars follow. Richard says family offices tend to follow other family offices.
- Plant seeds for the long term. Richard thinks people who invest time in the family office space now will be rewarded in four to seven years. He points to more wealth than ever and more wealthy people learning what a family office is.
- 1Review your industry, assets and location
- 2Find nearby, relevant family offices
- 3Build relationships with value first
- 4Land an anchor investor
- 5Keep building for the long term
Related questions
- What deal sizes do family offices typically write?There is no single typical size.
- Do family offices invest in funds or only direct deals?Family offices do both.
- 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 is a single family office?
It is an ultra wealthy investment organization for a single family. It often has 20 million dollars or more in assets, and some hold far more. It manages its own wealth and portfolio.
Why focus on family offices instead of many small investors?
One member closed an 8 million and a 40 million dollar equity check, which equals 48 million dollars. Raising that in 50,000 dollar checks would take 960 investors.
Which family offices should I approach first?
Start with those close to you in location and industry, or close to your asset. They understand your field, so you do not have to teach them the basics and things move faster.
Put this into practice with the family office fit check. See all raising capital from family offices resources.
