Raising capital from family offices
Where Ultra-Wealthy Investors See the Highest Demand
Where Do Ultra-Wealthy Investors See The Highest Demand?
Capital raisers and sponsors who want to know what family offices and wealth advisors are buying now and what they check before backing a team.
What you will hear
Treasury bills and money market funds came up first. Arya said 98% of his family's capital sits in a money market account, and Gary called T-bills a tremendously in-demand product. Kip cited 5.23% on a money market and structured notes at 12 to 17% for 9 months. Raymond's group prefers long-term yield plays and operators who write the biggest check.
The panel then covered how they pick sponsors and deals. Skin in the game, basis, location and deep sector expertise came up repeatedly. Gary and Kip described using funds and limited partnerships for diversification. An audience question on apartment rents led Arya to explain why Sun Belt markets such as Phoenix vary block by block, with free rent and heavy new supply in some submarkets.
What to take from this talk
- Short-term yield is in demand. Gary said treasury bills are in huge demand among the families he works with. Arya said 98% of his family's capital is in a money market account, and Kip cited 5.23% on a money market.
- Basis matters more than cap rate. Arya focuses on 7 to 10 year holds, all cash acquisitions and basis. He said basis is forever and yields are temporary. He also looks for barriers to entry and little new supply.
- Skin in the game comes first. Raymond wants operators who write the largest check in the deal. Arya agreed and said he dislikes sponsors who rely on a prior deal promote or fees.
- Funds add expertise a family lacks. Gary described building a system that mixes direct deals, funds and co-investments. He looks for sector specialists, such as in insurance technology, who have access to deals and will co-invest.
- Diversify by sponsor and product. Kip, an investment advisor, said he believes strongly in diversification. He favors limited partnerships and funds that hold many properties, and he relies on sponsors to do the due diligence he lacks the time to do.
Said on the call
"we don't care about cap rate right now because who knows what the tenant profiles look like and their health."
"we look for people that have a lot of skin in the game."
"we're looking at deep expertise in somewhere we want to be, not a generalist."
Facts from this talk
- Arya said 98% of his family's capital is in a money market account, and he cited a 5 and a half percent yield.
- Raymond's group put about $100 million to work in staging areas for truck fleets around the Sun Belt.
- Kip said his firm uses structured notes yielding 12 to 17% that run for 9 months.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Where Do Ultra-Wealthy Investors See The Highest Demand?. 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 fund and LP structures, sponsor disclosure practices and investor eligibility rules. Do not use AI to write your own legal agreements.
Related questions
- 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 long does a family office take to make a decision?There is no standard timeline, and I would not trust anyone who gives you one number.
- 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.
Questions about this video
What are family offices buying right now according to the panel?
The panelists named treasury bills and money market funds, private real estate, niche funds with sector expertise, and co-investments with operators. Kip also mentioned self storage, life settlements and structured notes.
What do these investors want to see in a sponsor?
They want real skin in the game, ideally an operator writing the biggest check. Arya also cited basis, location and downside protection, and Gary wants deep sector expertise.
Why does Arya say rent growth varies by market?
He said supply differs by submarket. Chandler has 3,000 units under construction, and he sees Phoenix apartments offering two months of free rent. Scottsdale has very little new supply.
Put this into practice with the family office fit check. See all raising capital from family offices resources.
