How To Locate Investors In Family Offices?

Connect with high-net-worth family office investors using our accurate database of family offices, updated daily with key insights and contact information. Our databases are trusted for use by Bloomberg, Deutsche Bank, and other publicly traded companies and $1B+ organizations. Our strategies show how to focus on one type of investor, attract investors faster, and raise more capital in a quarter than last year.

The Family Office Club was founded in 2007 and has now expanded its search and filter tools to help businesses find contacts in their industry. The Global Family Office Report 2024 is the most comprehensive study of single family offices worldwide, focusing on private equity, start-ups, real estate, and more. Access decision-makers and grow your network by downloading investor database lists and identifying and accessing family offices that best suit your offerings.

Family offices tend to have a lower profile compared to traditional venture capital firms, making it harder for startups to find them. FINTRX provides comprehensive Family Office Data and Registered Investment Advisor Data Intelligence to leading asset management firms. To succeed in finding family offices, build a strong personal brand online, including profiles on LinkedIn, AngelList, and Twitter.

When finding family offices, focus on family office investment strategy matchmaking, consider timing, and be creative in finding them. Family office conferences are great places to meet new family offices and learn about their areas of expertise.

How Do Family Offices Invest?

Family offices allocate a portion of their portfolios to venture capital and private equity, often investing in funds to delegate due diligence and deal flow responsibilities. These exclusive wealth management firms cater to ultra-high-net-worth individuals, providing a variety of financial services. Recently, family offices have gained popularity due to wealth concentration and changing generational dynamics. They manage complex, multi-asset portfolios, including direct investments in real estate and private equity, reflecting their shift from traditional roles to agile direct investors.

A 2024 UBS report highlights geopolitical risks as a significant concern for these offices. Approximately 80% are engaged in private equity investments. Family offices are also increasingly focusing on sustainable and impact investments that promise both financial returns and positive societal outcomes. Their revenue typically stems from management fees and performance incentives. Overall, family offices represent a dynamic investment strategy that adapts to the evolving financial landscape, employing diverse asset classes such as equities, bonds, and hedge funds while prioritizing diversification across investment vintages.

How To Prospect Family Offices?

To successfully engage with family offices for funding, begin with concise emails outlining your identity, your offerings, and the potential benefits for the investor. Clearly state your funding needs, anticipated returns, and the timeline for repayment. If you're a fund manager, briefly highlight your past performance and experience. Understanding the objectives and structures of family offices is crucial. This article discusses who should consider setting up a family office, the process involved, and how to work with established wealth managers.

It also shares best practices, common pitfalls, and emphasizes the importance of clearly defining family goals. Family offices are gaining traction among entrepreneurs seeking private capital, particularly if the match is right. Strategies for effective prospecting include sending personalized connection emails, conducting thorough research, and building trust throughout the engagement process. Understanding the backgrounds and interests of family office investors is vital to identify shared goals.

Given the increasing prominence of family offices in investment landscapes, adapting outreach methods is essential for success. Ultimately, family offices present rich opportunities, especially for ultra-high-net-worth individuals exploring diverse investment ventures.

How To Find A Family Office Manager?

To find the right Family Office Manager, establish a search committee with key stakeholders, including family, staff, and outside advisors. Determine whether to conduct the search internally or hire a search firm. During interviews, assess candidates' personalities and how they fit with the family and existing staff. The Family Office Manager, also called the CEO or director, oversees operations and strategy, requiring expertise in managing significant family assets.

Traditional family offices go beyond investing and must ensure wealth protection and growth. Identifying suitable candidates involves understanding whether a family office is necessary and if the family's wealth management needs align with their business operations. Recruitment begins with gaining insight into the family office’s dynamics, defining the skills needed, and predicting potential conflicts. Networking at family office conferences can reveal specializations and facilitate connections with proficient allocators.

A career trajectory in this field often emerges from prior experience in investment firms. While family offices are growing, they face a skill shortage. Utilizing resources like the Family Office Database helps find suitable prospects based on experience, with a preference for candidates with 3 to 5 years in relevant roles.

How Much Does A Family Office Cost Per Year?

Running a family office can be quite expensive, typically ranging from $1. 5 million to over $14 million annually. Rising internal costs and an unpredictable investment landscape prompt many family office managers to seek expense reductions. Citibank estimates that a small family office with two professionals and four support staff can incur costs between $1. 5 million to $1. 8 million yearly. The 'Global Family Office Compensation Benchmarking Report 2023' provides an overview of these expenses.

Setting up a family office involves varied costs, influenced by factors like service scope, family financial complexity, wealth size, and location. Employee costs contribute roughly 60% of total expenses, making such an office costly despite its potential benefits. Generally, expenses can represent 1% to 2% of the family's total active assets rather than net worth. The scale of costs can significantly differ, ranging from $100, 000 to $10 million per year, depending on service requirements.

The two primary cost blocks include investment management and operational costs. Additionally, external advisory and investment costs add to the total wealth management expenditure. Therefore, families considering establishing a family office should carefully evaluate these potential expenses and their corresponding asset thresholds.

At What Net Worth Does A Family Office Make Sense?

The establishment of a Single Family Office (SFO) presents various advantages, notably privacy, control, and alignment of family and employee interests. Generally, an SFO is advisable for families with a net worth exceeding $100 million, given that annual operational costs typically range from 1% to 3% of that figure. For a traditional family office, many experts recommend a minimum net worth of $250 million. Nonetheless, a family office might be suitable for households with a net worth starting at $50 million.

The 2022 Federal Reserve Survey indicates that the wealthiest 1% of American households maintain a net worth of at least $11 million. Factors beyond net worth also influence the requirement for a family office. For individuals or families with assets between $25 million and $100 million, a multi-family office could be a more prudent choice. In contrast, a dedicated family office is often beneficial for ultra-high-net-worth families whose intricate financial needs necessitate a coordinated service model, typically being most cost-effective for those with over $500 million. Ultimately, families with at least $100 million in investable assets predominantly opt for family offices to maintain asset control and informed decision-making.

Are Family Offices Worth It?

Family offices provide substantial value through comprehensive wealth management, including investment management, tax planning, estate planning, and philanthropic initiatives. They are established by ultra-wealthy individuals, such as Bill Gates, but around 10, 000 other families also utilize them. With increasing wealth and aggressive marketing, family offices have gained popularity among affluent individuals.

However, potential clients should weigh the advantages and disadvantages of different types of family offices—single-family offices (SFOs) and multi-family offices (MFOs)—to determine suitability based on net worth and lifestyle.

Family offices, as professional organizations, focus on the financial needs of high-net-worth families, offering personalized services that extend beyond typical financial advisory roles. They often emerge as necessary solutions to manage the complexities of considerable wealth, especially for those with net worth above $50 million. With family offices projected to oversee over $2 trillion in assets by 2030, they can instill an appreciation for wealth in future generations.

While they may not directly increase wealth, they play a vital role in preserving and effectively managing it. Establishing a family office is more advisable for those with a net worth exceeding $100 million, as they can alleviate financial and non-financial complexities faced by ultra-high-net-worth families.

How Do I Reach Out To Family Offices?

To connect with family offices and venture capitalists (VCs), attending industry conferences and networking events, as well as utilizing online platforms, is essential. Craft a compelling pitch and seek introductions from mutual connections to enhance credibility. A successful outreach to family offices requires well-prepared materials, particularly a clear email campaign that captures their attention. To ensure your email is opened, craft an engaging subject line and brainstorm topics that would interest family offices, which are increasingly targeted by entrepreneurs seeking private funding.

Family offices, representing ultra-wealthy individuals, vary in structure and purpose. Whether considering forming a single-family office (SFO) or collaborating with a multi-family office (MFO), consulting financial or wealth advisors is crucial. Key steps to attract a family office include: 1) Sending a thoughtful connection email, 2) Conducting thorough research pre-meeting, 3) Being unique in your approach, 4) Building trust throughout the interaction, 5) Remaining confident, and 6) Following up post-meeting with necessary next steps.

Networking events, professional associations, and utilizing family office directories can be effective strategies for engagement. Family offices typically receive numerous solicitations, so focus on establishing genuine connections and demonstrating mutual benefits, ensuring that your outreach resonates with their investment strategies and philanthropic interests.

How Much Do Family Office CEOs Make?

In the USA, Family Office CEOs earn an annual base salary ranging from USD$264, 000 to $330, 000, with a bonus of 21-30% on top. Notably, 13 CEOs can earn up to USD$1M as a base salary. The 2023 Global Family Office Compensation Benchmark Report provides insights into executive compensation globally, stating that nearly 75% of single family offices employ a CEO or President. Additionally, 93% of executives and 94% of other staff members surveyed indicated they either received or expected compensation.

U. S. family offices exhibit the highest pay for staff, especially in finance roles. The report underscores regional executive pay, where base salaries reflect market standards and individual salary history. Compensation has significantly increased over the past six years, with a typical salary for CEOs in the U. S. falling between USD$280, 000 and USD$330, 000. Conversely, in Asia, Family Office CEOs earn between SGD$158, 000 to 500, 000 (~USD$118, 000-374, 000). The highest paid family office CEOs can earn around USD$500, 000, emphasizing a lucrative environment in this sector.

What Is The Minimum Net Worth For A Family Office?

Establishing a traditional family office typically requires a net worth exceeding $100 million, with many families considering it only after reaching at least $250 million. Advisors often recommend that a family should have a minimum of $100 million in total net worth before considering a family office. Multi-family offices (MFOs) cater to multiple families and have varying minimum asset requirements, generally starting around $50 million.

However, even for MFOs, clients typically have a net worth of over $25 million. The cost of a single-family office (SFO) starts at approximately $1 million annually, while MFOs usually charge fees ranging from 0. 5% to 2% of assets under management (AUM).

Family offices serve ultra-high-net-worth individuals, aiming to grow and manage wealth across generations. The ideal candidates for an SFO are families with net worth above $100 million, while those with at least $250 million are even better suited. Understanding these financial thresholds is vital for high-net-worth individuals evaluating their wealth management options. Ultimately, the decision to establish a family office should be based not only on total assets but also on the family's specific financial needs and objectives, enabling tailored, integrated wealth management solutions.

What Is The Average Size Of A Family Office Fund?

Family offices manage an average of US$2. 0 billion in assets under management (AUM) and serve families with an average wealth of US$3. 8 billion, totaling an estimated US$708 billion in AUM and US$1. 3 trillion in family wealth. Typically, these offices are sophisticated investment vehicles with average AUM between $500 million and $1 billion. Many family offices are smaller, often employing one or two staff members. There are over 10, 000 single-family offices (SFOs) and about 5, 000 multi-family offices (MFOs) globally.

SFOs cater to individual families, while MFOs support multiple families, usually at a lower cost due to economies of scale. Research shows that the largest family office is Walton Enterprises LLC, followed by Cascade Investment and Bezos Expeditions. Establishing a traditional family office generally requires a net worth exceeding $100 million. Importantly, 60% of family offices expect significant intergenerational wealth transfers within a decade.

Family offices necessitate substantial investment percentages, with costs varying widely based on the services provided. For instance, larger family offices may start with $2 million investments, while smaller ones might begin at $250, 000. Overall, the North American family office sector has seen wealth double since 2019, reaching $2. 4 trillion.