Offer Standout Returns to Family Offices
www.arrivatollc.com – so you want to get partnered with a family office on your next transaction? So does everyone else.
In fact, family offices receive sometimes over 1,000 proposals annually and some even into the thousands. I know my inbox ranges from 250 to 350 emails per day.
A typical family office who makes LP investments or co-GP investments might only write a few checks per year. At best, for every 100 proposals considered, maybe 1 or 2 checks are written.
How do you separate yourself from the pile and become that one person who secures a partnership with a family office?
Now I understand that everyone believes they are special or one of the best in the industry.
Here is the truth.
I hear from real estate operators, developers, business owners, and fund managers on a daily basis. They are all the same, very few of them stand out from the crowd, and the returns models are all the same. Ask any other family office this same question, their response will be the same as mine.
I have been in several roundtables in an attorney’s office, a host family’s office, or a private dinner – each time with an average of 10 – 20 families. The most common observation has been that return profiles have been too low lately and/or pricing too expensive to get into transactions whether as a LP or an outright acquisition – especially in real estate. The common theme is that the margin of error is too thin.
Here is my advice.
It is very simple.
If you want to attract a family office as a partner and separate yourself from the crowd…create a model that is compelling to the family office. Offer returns that are compelling and more attractive than the other 98 or 99 proposals they are reviewing in the next month.
Let’s keep this in mind. Most of the legendary families who created wealth in the United States had to give something up to get off the ground of reach the next level. The big picture is become greedy over the long-term rather than today.
#forevercompete #winthisday #innerelite #leagueofilluminati