single family office industry & investment fundamentals · 2014. 6. 1. · many single family...
TRANSCRIPT
Single Family Office Industry &
Investment Fundamentals
By Richard C. Wilson
CEO, Family Offices Group
Disclaimer & Limitations
Please do not use any advice within this or any other
presentation without first consulting your
compliance officer or legal counsel.
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Disclaimer & Limitations
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Family Offices Group
1. #1 Global Family Office Brand
2. Founded in 2007, 72,000 Members in 50 countries
3. 1,800 Articles, 275 Videos, 50+ Hours of Audio Interviews, & Millions of Views
4. Our resources have been used by over 5,000 family offices globally
5. Face-to-face meetings with over 1,000 family offices in 15 countries
6. #1 bestselling family office book called The Family Office Book: Investing Capital for the Ultra-Affluent
7. Family Office Certificate Program: Qualified Family Office Professional (QFOP) designation: http://FamilyOfficesGroup.com/Training
Disclaimer & Limitations
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Family Office Workshops
1. Live Full Day Catered Workshops
2. Training Binders & Lifetime Access to the
Qualified Family Office Professional (QFOP)
program
3. Grow your network & understanding: Meet
family offices and peers face-to-face
4. The only guaranteed event in the family office
industry.
5. Reserve your seat at
http://FamilyOfficesGroup.com/Workshops
Definitions
1. Single Family Office
2. Multi-Family Office
3. Outsourced Chief Investment Officer
1. Around 2,000 single family offices in the
U.S. and well over 5,000 globally
2. 1,500 billionaires in the world, and over
10,000 $100 millionaires, they need some
sort of family office help
3. Everywhere or nowhere?
Secretive
1. 3-8 months typically, up to 3 years possible
2. Family Office Compass Creation
3. Selecting Team Members + Experts
4. Operations & Systems
5. Governance & Multi-generational Changes
Starting A Single Family Office
5 Most Valued Types of Expertise
Family Office CEO Chief Investment
Officer (CIO) level investment expertise
Taxation and Trust & Estate Law
Private Equity or Direct investments
CFO/Accounting Expertise from other
family offices, trusts, private bank, or
wealth management firms
Risk Management / Insurance
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Family Office Investment Committees
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1. Ad-hoc advisory, advisory board, investment committee, commercial transactions/investments
2. Investment Bankers
3. Fund of Funds – Fund Advisory Consultants
4. Accounting & Fund Administration Services
5. Information Technology (IT) providers
6. Outsourced Chief Compliance Officer
7. Legal Counsel
8. Virtual family office management
9. PE/HF/RE funds
10. Public Relations / Communications / Marketing
Common Partners
1. 65%+ hold operating assets
2. Single Sandbox Strategy vs. Diversified
Institutional
3. Master of 2-3 skills or abilities as a family
which propels their assets forward
4. Typically little to no professional staff hired
exclusively to oversee these operating assets
5. Proprietary (targeted) deal-flow is a
bottleneck more than capital
Examples: $500M Asian Family, $1B Australian
Family,$1B Consumer Product, $1B Commodity
Families, $12B EU Family, & 6th Generation Textile
Family
Direct Investments & Operating Interests
1. Due Diligence & Future Round Mistakes
2. Technology Risk
3. Market Risk
4. Competitive Risk
5. Management Risk
6. Finance Risk
7. Opportunity Cost
8. Example: Helicopter Business Startup
Direct Investment Risks & Mistakes
1. Established vs. Too Big
2. Unique offering, still understood
3. Long-term trusted relationship &
references
4. Spending time on the relationship, yet
institutions past the $300M in AUM level
may provide more capital per hour
invested
5. Access?
Fund Manager Challenges
1. “Simple” Hurdle
2. Apartment Buildings & Hotels Preferred
3. Geographical checkbox or complete
diversification mentality
4. Trophy Assets or Networking/Prestige
Benefits
5. Professional Teams + Long-Term Track
Records are rare
6. Many grow out of needing help
Real Estate Challenges
1. Creative, flexible approach
2. Do your homework to add insight and value
3. Scenario planning before meeting
4. Think in terms of royalties, convertible debt,
equity, protected downside, liability, etc.
5. Be Influenceable before influential
6. Relationship is more important than the deal
Partnership Suggestions
1. Examples/Case Studies
2. Niche Hedge Fund, CIO, or Direct Investing Focus
3. Blue Ocean Strategy “7 years ago we were always
the only or one of two solutions considered, today
the market is competitive” – CEO of a top ultra-
wealthy investment consulting firm
4. Example: SFO Advisory/Consulting, Virtual Family
Office, & Direct Investment Advisory…need CIO
services or talent, etc. we can help but typically
through partners.
5. How do you carve out a small niche or sandbox,
and be world class within that defined area?
Wealth Managers Serving SFOs
1. Many single family office want to know
someone for 5-7 years before hiring them
as a CEO or CIO
2. Relationship is most important, how single
family offices perceive partners and other
family offices matters greatly
3. Experience, Brand, References, Insight,
Track Record can help replace the need to
wait 5-7 years before working together.
Conviction
Family Offices Group Offerings
If you are setting up a family office, need help with family
office marketing, or other advisory work please send an
email to [email protected]
We offer the following resources on family offices:
1. Qualified Family Office Professional (QFOP):
http://FamilyOfficesGroup.com/Training
2. Qualified Family Office QFO
http://familyofficesgroup.com/qfo
3. Family Office Monthly Newsletter:
http://FamilyOfficesGroup.com/Newsletter
4. Family Office Webinar Series:
http://FamilyOfficesGroup.com/Webinars
5. Family Office Workshop Series:
Http://FamilyOfficesGroup.com/Workshops
Disclaimer & Limitations
18
Family Office Workshop
1. Live Full Day Catered Workshops
2. Training Binders & Lifetime Access to the
Qualified Family Office Professional (QFOP)
program
3. Grow your network & understanding: Meet
family offices and peers face-to-face
4. The only guaranteed event in the family office
industry.
5. Reserve your seat at
http://FamilyOfficesGroup.com/Workshops
Questions?
Richard C. Wilson
CEO/Founder
Family Offices Group
Sao Paulo, BrazilPortland, Oregon
New York
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