family office co investing webinar axial

8/12/2019 Family Office Co Investing Webinar Axial

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Investment Preferences of Family Offices

By Richard C. WilsonCEO & Founder

Family Offices [email protected]


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Disclaimer & Limitations

Please do not use any advice within this or any otherpresentation without first consulting your

compliance officer or legal counsel.

!


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Disclaimer & Limitations

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1.

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7 Family Office Investment Priorities

1.

Capital Preservation2. Growth

3. Privacy

4. Taxes

5. Income ($100M+ Change)

6. Time Commitment

7. Privacy

8.

Fraud Risk

%


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What is Unique About Working with FOs?

1.

Low level of flow unless you are MichaelDell or Boone Pickens

2.

Opportunity to move quickly when theopportunity is right

3.

The right industry titan can open bigstrategic doors

4.

Referral networks are key

5.

More Money, More Problems for mostresource/team constrained familyoffices


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1.

Standard Investment Banking Approach

(90-95% of all offers)2.

Strategic Valuations (Samsung)

3.

Futurist Valuation/Mindset (Disney/Kennedy)

Note: Many my think strategically but try to buyyou out at commodity investment banker prices.

3 Types of Direct Investments


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Direct Investing Motivations

1.

Definition

2.

Examples3.

Motivations: Transparency, Returns,Competitive Edge,

4.

Pendulum Swing U.S. vs. Asia

5.

Portfolio %s dedicated to DirectInvesting

Here is a video I recently recorded while I was in Berlin on direct investing:http://SingleFamilyOffices.com/Family-Office-Direct-Investing


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Direct Investing Types

1.

Commodity, Strategic, & Futurist Valuations

2.

Diversification vs. 1-3 sandboxes3.

Minority boring & stable vs. control and 100%buy-outs


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1.

Define Each

2.

Creative Terms3.

Immature Space

4.

Very under-the-radar

5.

Trust and reputation based

6.

Specific to certain industries, andgeographies

Examples: $1B Consumer Product, $1BCommodity Families, $12B EU Family, & 6thGeneration Textile Family

Co-Investments & Club Deals


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1.

Simple Hurdle

2.

Apartment Buildings & Hotels Preferred

3.

Geographical checkbox or completediversification mentality

4.

Trophy Assets or Networking/PrestigeBenefits

5.

Professional Teams + Long-Term TrackRecords are rare

6.

Many grow out of needing help

Real Estate Investments


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Family Office & Client Examples

1.

7thGeneration Textile Family

2.

Famous $3B+ Family

3.

$1B+ Commodity Family

4.

$2B+ Product Family

5.

Philippines VC & Tech/Palm Oil Family

6.

#1 family in Peru

7.

$900M PE Family

&!


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Top Direct Investing & Co-Investing Mistakes

1. Not Understanding the Risks Before Buying

2. Not Anticipating Future Rounds

3. Overzealous Negotiations

4. Not Saving Dry Powder

5. Poor Due Diligence

6. Pouring Good Money After Bad

7. Not Having an Attorney Review Everything

Free Video:http://SingleFamilyOffices.com/Top-Mistakes-in-Direct-Investing


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Deal flow Sources for Family Offices

1.

Family Office, Merchant Bank, and Investment BankReferrals

2.

Call Centers3.

Niche Industry Status, $1B+ Commodity FirmExample

4.

Deal Networks (Axial, etc.)

Deal Fatigue: Families are worried about seeing a

shopped deal, that has too many layers of fees, non-ideal terms, or just something that has no momentumin the market.

Here is a short video on sourcing direct investments:http://SingleFamilyOffices.com/Sourcing-Deals-For-Direct-Investments


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Crystal Clear Advantage

1.

2,000+ fund managers a year

2.

86% of investors wont invest in somethingthey dont understand.

3.

Half of all passes on a strategy are due toeducational barriers.

4.

Geographical & Sandbox Family Focus5.

Families are fee sensitive


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Family Office Resources

We offer the following resources on family offices:

1.

Family Office Database Packages:Http://FamilyOffices.com

2.

Qualified Family Office Professional (QFOP):http://FamilyOfficesGroup.com/Training

3.

Family Office Workshop Series:Http://FamilyOfficesGroup.com/Workshops


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Questions?

Richard C. WilsonCEO/Founder

Family Offices [email protected]

Sao Paulo, BrazilPortland, Oregon

New York

Singapore

London

United Airlines

[email protected]| (212) 729-5067 | [email protected]| www.PrivateEquity.com

family office co investing webinar axial

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