This PowerPoint presentation is from a 90 minute webinar we conducted on family office investment priorities. If you are looking to work with family offices to partner with them or raise capital from them, or if you are using a family office database this information will help make sure you don't waste their time. Everyone is trying to reach out to family offices now, and they are bombarded with irrelevant offers, use this information to be more relevant to them.

1. Family Office Investment Preferences
By Richard C. Wilson
CEO, Family Offices Group

2. Disclaimer & Limitations
Please do not use any advice within this or any other
presentation without first consulting your
compliance officer or legal counsel.
2

3. Disclaimer & Limitations
Family Offices Group
1.
#1 Global Family Office Brand
2.
Founded in 2007, 68,000 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.
We offer the leading family office database at
http://FamilyOffices.com
8.
Family Office Certificate Program: Qualified Family
Office Professional (QFOP) designation:
http://FamilyOfficesGroup.com/Training
3

4. SFO vs. MFO Models
1.
1 Minute Family Office History
2.
SFO vs. MFO
3.
Growth of the industry
4.
Growing Investor Class & Best
Practices

5. 7 Family Office Investment Priorities
1.
Capital Preservation
2.
Growth
3.
Privacy
4.
Taxes
5.
Income ($100M+ Change)
6.
Time Commitment
7.
Privacy
8.
Fraud Risk
5

6. Family Office Investment Committees
Family Office Investment Committees
1.
SFO
2.
MFO
3.
Tactical vs. Strategic Teams
6

7. Types of Investments
1.
Operating Businesses (Direct Investing)
2.
Real Estate
3.
Long Only, Public Market, ETF, Mutual Funds
4.
Hedge Funds & CTA Funds
5.
Private Equity

8. 3 Types of Direct Investments
1.
Standard Investment Banking Approach (9095% of all offers)
2.
Strategic Valuations (Samsung)
3.
Futurist Valuation/Mindset (Disney/Kennedy)
Note: Many my think strategically but try to buy
you out at commodity investment banker prices.

9. Co-Investments & Club Deals
1.
Define Each
2.
Creative Terms
3.
Immature Space
4.
Very under-the-radar
5.
Trust and reputation based
6.
Specific to certain industries, and
geographies
Examples: $1B Consumer Product, $1B
Commodity Families, $12B EU Family, & 6th
Generation Textile Family

10. Fund Manager Qualification Points
1.
Consistency: Stable team, process, and
deal types producing current vs.
historical returns
2.
Authority & Scarcity: Leader & Unique
Offering
3.
$500M or $1B+ preferred
4.
$5B+ sometimes criticized
5.
Trust factor is why AUM is so critical for
emerging market families
6.
The investment process must be
understood

11. Fund Manager Track Record Expectations
1.
Private Equity Track Record Expectations:
2.0-2.8x over 5-7 years with some
forgiveness certain vintages
2.
Hedge Fund Track Record Expectations:
Zero in on 2008 & 2001, 5-7+ years,
consistent returns and process
3.
Real Estate Fund Manager Expectations:
More focus on diversity vs. experience in
target markets, team, taxation issues, and
liquidity/income issues. Must be far above
and beyond what a family can pull off
themselves, or in a hard-to-access
geography.
4.
More in a future webinar on these topics.

12. Real Estate Investments
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

13. Family Office Partnerships
1.
Applies to funds and direct investing
2.
Entrepreneurial at heart
3.
Protect downside
4.
Be Flexible
5.
Look for chances to partner, finance/factor,
seed, share upside for being first mover, etc.

14. Trusted Expert Team
1.
Market & AUM to Team Match
2.
Feet on the ground analysis, $300M hedge
fund example
3.
Deal-sourcing is critical but professionals
with connections that can lead to exits is
often seen as more important by investors
in my experience.
4.
The relationship matters
5.
Celebrity factor, industry titans,
recognized investor names, well respected
professors, royal family connections can
help open doors with certain families

15. Crystal Clear Advantage
1.
2,000+ pitches a year
2.
86% of investors won’t invest in something
they don’t understand.
3.
Half of all “passes” on a strategy are due to
educational barriers.
4.
Geographical & Sandbox Family Focus
5.
Families are fee sensitive

16. First on the Beach
1.
Open to Create arrangements
2.
In private equity Fund #3 or Fund #4
or later most well received, for
hedge funds 5 year track record is
the standard.
3.
Prove the concept, market, business
plan
4.
Capital preservation is their chief
concern, not a timeline to allocate
or checkbox forced allocation to a
region
5.
Don’t kill my money (Kevin O’Leary)

17. Long-Term Perspective on Strategy
Reverse cognitive bias
How you do one thing is how
you do everything

18. Listening
Nobody Listens
Be Influenced to Influential
Take Notes, Repeat Back
Follow Up Carefully and Reply to Requests

19. 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 Richard@FamilyOfficesGroup.com
If you are looking for a family office database please see
http://FamilyOffices.com
We offer the following resources on family offices:
1.
Qualified Family Office Professional (QFOP):
http://FamilyOfficesGroup.com/Training
2.
Family Office Monthly Newsletter:
http://FamilyOfficesGroup.com/Newsletter
3.
Family Office Webinar Series:
http://FamilyOfficesGroup.com/Webinars
4.
Family Office Workshop Series:
Http://FamilyOfficesGroup.com/Workshops

20. Questions?
Richard C. Wilson
CEO/Founder
Family Offices Group
Richard@FamilyOfficesGroup.com
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