Single Family Office Mandate: Alternatives, Banks, Private Equity and Real Estate
Single Family Office Investor Mandate Focused on Alternatives, Banking, Private Equity & Real Estate
Family office allocators, fund managers and deal sponsors who want to hear how an experienced family office group thinks about mandates and market risk.
Said on the call
"Typically we're looking for non-correlated managers, absolute return in niche spaces. You know, that used to mean things like convertible arbitrage or bond arbitrage or merger arbitrage."
"Most of the spendable money, most of the excess capital in the consumer market, is in the hands of people 65 and older. That's where the wealth is in the United States."
"Private equity will have to shift. There'll be defaults, there'll be bankruptcies in private equity, and there'll be litigation around those bankruptcies."
The short version
The guest runs his own single family office and also serves as president of a group of 35 family offices. The group meets twice a month to vet investment ideas. Each member decides on their own, but they share due diligence. After 11 years, the group has vetted more than 500 managers.
His own mandate favors non-correlated managers with absolute return strategies in niche spaces. He also sees possible opportunities in big banks, real estate dislocation and private equity pipe deals. He is cautious about business models hurt by virus-era costs and about real estate demand in dense cities, and shares these views as his own.
From the source
- The guest's group includes 35 family offices and has operated for 11 years.
- The group has vetted more than 500 managers and meets twice a month.
- The guest expects bankruptcies among private equity companies that were levered seven times.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Single Family Office Investor Mandate Focused on Alternatives, Banking, Private Equity & Real Estate. 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.
Five points worth keeping
- Non-correlated managers come first. The guest looks for managers with absolute return strategies in niche spaces. He says this used to mean convertible, bond or merger arbitrage, but now covers more. The goal is returns that do not track the S&P or the Nasdaq.
- A group shares the due diligence. His group of 35 family offices meets twice a month. Each member makes their own decision, but they share the vetting process. In 11 years the group has vetted more than 500 managers.
- Big banks look attractive to him. He expects large banks to do fine. He points to money earned distributing the government's PPP funds and wide spreads. He thinks some smaller banks will not survive and that consolidation will follow.
- Private equity may need to shift. The guest expects defaults and bankruptcies among companies that were levered seven times. He also sees private equity firms doing pipe deals and convertible preferred deals in public companies.
- Real estate is uncertain. He sees possible money in buying from defaulting owners and waiting. He says it is unclear what demand for high-rise buildings will look like. He also notes that most spendable consumer capital sits with people 65 and older.
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 kind of investments does this family office look for?
The guest looks for non-correlated managers with absolute return strategies in niche spaces. He also mentions banks, dislocated real estate and securitized real estate deals as areas he is putting some money into.
How does the family office group make decisions?
The group of 35 family offices meets twice a month to vet ideas. Each member makes their own investment decision, but they share the due diligence and evaluation process.
What does the guest expect from private equity?
He expects defaults, bankruptcies and litigation among highly levered companies. He also expects private equity firms to buy stakes in public companies through pipe deals and convertible preferred deals.
Put this into practice with the family office fit check. See all investor mandates resources.
