single family office
DESCRIPTION
A single family office is a holistic full balance sheet wealth management and financial solution for ultra-wealthy individuals or families. It is an organization dedicated to preserving, and investing the capital of its family. Single family offices have been around in different forms for over 500 years but it was just in the 1930's-1960's that the modern day version started to take form...and even know many people do not understand what a single family office does or how they operate or invest their capital. The single family office industry is growing quickly and if you would like to learn more about creating a single family office, family office executive search, family office co-investments, family office jobs, family office training, our family office association or single family office investments you will enjoy this PowerPoint overview of the industry. If you would like to see how to work with our team please visit http://SingleFamilyOffices.com or http://BillionaireFamilyOffice.com Thank you for following our work. Richard C. Wilson CEO/Founder Family Offices Group Billionaire Family Office Single Family Office SyndicateTRANSCRIPT
Single Family Office Industry & Investment Fundamentals
By Richard C. WilsonCEO, 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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Single Family Office Advisory
1. Advisory Board, Single Family Office Formation/Formalization, Co-Investment Deal Flow and Direct Investment Advisory Services.
2. Founder of the Family Offices Group is the #1 Global Family Office Brand. Founded in 2007, 72,000 Members in 50 countries. Face-to-face meetings with over 1,000 family offices in 22 countries
3. Operate a Single Family Office Syndicate and the Billionaire Family Office.
4. 1,800 Articles, 275 Videos, 50+ Hours of Audio Interviews, & Millions of Views. Our resources have been used by over 5,000 family offices globally.
5. #1 bestselling family office book called The Family Office Book: Investing Capital for the Ultra-Affluent
6. 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. Single Family Office Advisory Service: http://SingleFamilyOffices.com
2. Billionaire Family Office: Solutions exclusively for families with $1B or more in assets under management: http://BillionaireFamilyoffice.com
3. Qualified Family Office Professional (QFOP): http://FamilyOfficesGroup.com/Training
4. Family Office Workshop Series: Http://FamilyOfficesGroup.com/Workshops
Disclaimer & Limitations
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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. WilsonCEO/Founder
Family Offices [email protected]
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