Skip to main content

Suggested Ways a New Manager Should Approach a Family Office Who They Want To Do Business With

Reaching out to family offices in the hope of doing business together is something that people, including myself always wrestle with.   Some Family Offices are  easier to work with than others, and some have certain steps that they want you to take.  

This post is from 5 Family Office Representatives that list what they suggest is the best way for a new manager to approach a family office that they want to do business with: 

CEO - 
Single Family Office (SFO)

The approach really depends on if we have an interest in the strategy the manager is presenting.  With that being said we are always looking for great new managers.

PRESIDENT & CIO - 
Single Family Office (SFO)

Email / Call / Meeting.  Send Deck First!

CIO//SENIRO WEALTH ADVISER AND PORTFOLIO MANAGER- 
Multi Family Office (MFO)

The team should be first rate, experienced and trustworthy.  The investment thesis must accord with Team experience and fit current and future investment environment.  Executive summary should be 1-2 pages and very concisely set out with the opportunity.  first meeting should be educational and not sales-y.   Presentation should be data-dense and concise.  Investment  docs must be investor/LP friendly with European waterfall and NO underlying fees apart from management fee and incentive over a reasonable hurdle.  Patience as we don't move very fast.   And have to be good and interesting people.

MANAGING DIRECTOR - 
Multi Family Office (MFO)

Develop a relationship with one of the three principals first, before pitching a deal.   A lot easier to discuss a project if we have an existing relationship b/c some of the requisite due diligence will have been completed already (remember due diligence is in large part about the individual/sponsor.  Often times as much or more than the deal itself.)

ASSOCIATE DIRECTOR-
Multi Family Office (MFO)

The best way would be schedule a meeting with our investment team.  If the strategy is of interests, the terms are acceptable and we believe there would be client demand, then the manager would undergo our due diligence process.

Comments

Post a Comment

Popular posts from this blog

Harvard's Endowment commits to a target investment range into real estate between 10% to 17% for 2016

Years ago, before the downturn I was paying very close attention to the investing allocation of my Alma Maters Endowments Investing Strategy HMC (Harvard Management Company), especially in the area of real estate.  I believe that not only was Harvard a great place to understand the importance of investment allocation strategies before the downturn but even more so since the downturn. In fact, investors who are looking to enhance the performance of their investment portfolios probably won’t find a better investment model than the one used by the $37.6 billion endowment for Harvard University. The entity in charge of managing the endowment, Harvard Management Company (HMC), has accrued an impressive investment track record across its 41-year history. As of fiscal year 2015, the endowment had produced an average annual return of 12.2% – 290 basis points higher than the average 9.3% return of a typical U.S. 60/40 stock and bond portfolio. The methodology behind HMC’s success i...
1 comment
Read more

CRE Distress is Still Out There................Lingering

Capital Scarcity Persists T here remains scheduled maturities in excess of $300 billion for each of the four years, 2014 through 2017. Most of this debt was underwritten during the peak of the last cycle from 2004 to 2007, when valuations were high and loan underwriting standards were loose, amortization disappeared and interest-only payment terms took its place. The majority of these loans are either under water (the loan is in excess of today's value of the property) or un-refinanceable, given today's lower asset valuations and more restrictive debt covenants. Additionally, a huge portion of the debt that matured during the 2009-2012 timeframe (per the graph below, in excess of $300 billion per year) has not yet been resolved.   Maturities Catalyze opportunity It has been "extended and pretended" and still awaits recapitalization and resolution. In other words,   the majority of the problem in CRE is still to be solved and the majority of the distre...
Post a Comment
Read more

Buffett’s Three-Step Rule of Focus for Success

To set you on the right course, take a coaching lesson from Buffett himself. He once walked his personal pilot through a life-changing exercise in goal-setting that's since become popular in productivity and career circles. It's a simple, three-step process to set boundaries, say no to distractions, and home in on success. It goes like this: 1. Write down a list of your top 25 career goals. 2. Circle the five most important goals that truly speak to you. These are your most urgent goals. Now here's the real kicker. 3. Completely eliminate the other 20 goals you have listed. Just cross them off, despite if they ...
Post a Comment
Read more