Deal Flow Mindset of Family Offices
www.arrivatollc.com – As I prepare to participate in another family office panel this week, many people always ask what are family offices looking for.
The biggest misconception among principals and brokers looking to raise capital is “this is ideal for a family office” is the one statement I hear frequently. As a Single Family Office ourselves, we can attest to this. While we have a few diverse interests outside of our primary real estate and trading strategies, we are typically very selective and focused in our investment directive.
While many families are invested in selecting private equity and hedge fund managers, most families focus on direct investments. The majority are targeting real estate – especially value plays in multi-family or various stages of well-positioned hospitality assets. Outside the real estate market, family offices tend to stick to sectors they know intimately – often within the sector where their wealth was generated.
If a family office is going outside their area of familiarity – they often will stick with their own – meaning other family offices where there is a comfort level. There is more of a trust level with other families since these families are generally sophisticated and well-connected to insider opportunities that the other 99 percent will never have access into.
At the end of the day, it is generally who you know that makes the difference. I can attest to this personally. When a special situation arises, I know who to contact to make things happen. At the same time, many doors open our way for our family office and our family of companies due to the people we know.