Family office highlights this week:

• 7 ways funds can connect better with family offices

• Some unmissable data on Venture Capital

• Scale teams and build culture with insights from former Stripe COO

• How to build the perfect investment platform for family offices and endowments

• The Mr Family Office Deals newsletter is coming soon

The Art of Connection: How Funds can Reach Family Offices

Here’s the paradox – family offices want to connect with funds and funds want to connect with family offices, but bridging the gap can be surprisingly difficult.

Family offices want access to high-quality deals, exposure to expertise and opportunities for strategic partnerships.

Fund managers want access to the deep pool of family office capital, valued for its long-term perspective and flexibility.

But that doesn’t mean it’s straightforward.

There’s a lot of noise around. The market is crowded. And it doesn’t help that family offices tend to keep a low profile.

Today it’s a look at how funds (private equity, venture capital, hedge funds), can navigate through the noise to make meaningful connections with family offices.

Opportunities abound

Family offices are sitting on a significant and growing pool of capital that they want to deploy.

However, connecting with them requires more than a cold pitch or a generic email blast. You need to be strategic, well-researched, and most importantly, patient.

So how can funds effectively break into this space and build lasting partnerships with family offices? Let’s dive in.

 1. Start with Your Network 🔗

Family offices operate on trust, and a referral from a respected contact can be a game-changer.

Tapping into your existing network is the fastest way to get a foot in the door with family offices.

Leverage your relationships with professionals who often have strong ties to family offices. Think lawyers, investment bankers, auditors, founders, accountants and other service providers. Think work networks, social networks, family networks.

Warm introduction to the right decision-makers at family offices can be priceless.

Don’t overlook other funds either – family offices often invest in multiple funds, and a fund manager you've worked with before could introduce you to a family office that fits your investment strategy.

 2. Use Databases – But Wisely 📊

Leveraging your network is crucial, but using databases can help you scale your outreach.

The leading family office database, FINTRX, provides highly detailed information on family offices globally. It’s expensive, but for those serious about building a long-term pipeline, the price could be worth paying.

FINTRX provides detailed information about key personnel including their backgrounds and hobbies. Interests outside work can form the basis of a connection.

If you're looking for something more budget-friendly, there are a range of cheaper databases such as Family Office List. (Bonus: you can use the code "MRFO30" for a 30% discount). It includes less detail than FINTRX, but has a strong list.

When using databases, the key here is not just to get a list of family offices. You need to find the right family office for your fund’s mandate and then identify the key contact person.

From there, you should still chase a warm introduction - see if you can reverse engineer a connection, perhaps searching LinkedIn for a mutual acquaintance.

3. Do Your Research 🔍

No amount of networking or databases will help if you haven’t done your homework.

Before reaching out, you need to deeply understand the family office you’re targeting. Start by researching them online, looking at news articles, LinkedIn profiles, Twitter feeds, and any relevant public appearances.

Knowing who’s running the family office, what sectors they’re interested in, and how they’ve invested in the past will give you an edge.

Family offices are notoriously the opposite of one-size-fits-all. Each one is unique and has its own investment thesis.

Trying to pitch a family office that specializes in real estate on your tech-focused VC fund is a waste of everyone’s time. Know their mandate before making your approach.

As a general rule, European family offices tend to be more conservative and slower to make decisions compared to their U.S. counterparts, who may act more quickly on opportunities.

You need to understand:

• The unique purpose of the family office – what is driving the decision-making

• The family values – these may be more than pure return and may focus on succession, legacy, impact, education and philanthropy

• The key investment priorities – for example, wealth preservation, diversification

• The investment strategies – understand the portfolio, the preferences, the interests

 4. Lead with Value️

The key to working with family offices is to build the relationship slowly and to lead with value.

Don’t try to rush them into making a decision. Ideally the relationship will start well before the fund raising begins.

Focus on building rapport over time. Offer value – whether that’s in the form of strategic advice, insights into sectors they care about, or introductions to people in your network (this is an underused value driver).

Don’t leave the communication to the juniors. Senior fund managers should be available to speak with the family office.

Check out this thread on how to engage family offices by leading with value first.

Once trust is established, things can move very quickly. Family offices are nimble when they want to be, and if they see an opportunity, they’ll move fast.

When communicating with the family office be transparent, clear and honest. Remember that quality beats quantity. Don’t send generic updates, send intelligent, tailored information that addresses the family office’s interests and values.

And don’t bombard the family with material. Quarterly updates usually suffice.

Many family offices value fund managers who can offer strategic insights, such as market trends or operational guidance. So be willing to share.

Finally - family offices value discretion and privacy.

 5. Make a Tailored Pitch 🎯

When the time comes to present your fund, make sure your pitch is tailored to the family office’s specific interests. Generic presentations won’t cut it.

Tailor your pitch based on the following:

• Sectors they care about

• Geographic focus

• Investment size and time horizon

If you’ve done your research, this part should come naturally. The goal is to show that you understand their priorities and how your fund aligns with their investment goals.

For more on making tailored pitches, check out this guide.

While a tailored pitch is important, it is a mistake to change the nature of the offering to fit with the family office. It is both inauthentic (which usually becomes obvious over time), but also counter-productive for a long-term relationship based on trust and shared goals.

6. Explore Deal Listings 💡

A growing trend is the use of deal platforms. These enable you to showcase your fund or individual deals directly to family office investors for consideration. These platforms streamline the process, offering a more efficient way to reach potential investors and gain visibility in a competitive market.

Deals can also be shared to family office organizations through newsletters. For example, The SFO Alliance shares a limited number of deals with its members.

And watch this space… coming soon, a dedicated Mr Family Office deals newsletter.

7. Be Mindful of Fees 💰

One thing to keep in mind when dealing with family offices – especially first-generation family offices – is their sensitivity to fees.

Many of these families are highly conscious of costs and will scrutinize your fee structure. They prefer to see performance-based rewards, so be prepared to negotiate hard on this front. 

Structure your fund in a way that demonstrates a clear alignment between performance and compensation. Offering a low management fee and higher performance fee can be a good way to align incentives and appeal to fee-conscious family offices.

Let’s go!

Connecting with family offices isn’t about sending out a bunch of cold emails or hoping for a quick win.

It’s about building relationships, understanding their goals, and aligning your fund with their investment strategy.

Start with your network, do your research, and tailor your approach.

Lead with value, and be patient.

And with the right strategy, family offices can become some of your most valuable partners. 💼 ✨

𝕏 highlights

Some fascinating insights into venture investing.

Family Office Asset Allocation is always a hit.

A nice milestone this week - 40,000 followers on 𝕏!

💼 where to work

Three notable family office jobs, as shared in our Mr Family Office Careers newsletter this week.

Director, Finance & Operations, New York, Single Family Office

Family Office Accountant, Orange County, Single Family Office

Accounting Clerk / Bookkeeping Specialist, New York, Single Family Office

📚 what to read

Scaling People: Tactics for Management and Company Building by Claire Hughes Johnson, former COO of Stripe, provides practical strategies for scaling teams and building strong company cultures. Drawing from her experience at Stripe and Google, Johnson shares actionable insights on hiring, team dynamics, and effective management practices.

My copy is full of Post-It notes - this has to be a good sign!

📻 what to listen to

In this episode of the 10X Capital Podcast, host Mark Shoberg discusses institutional investing with David Weisburd. How large should an endowment be for optimal returns, and how to build the perfect investment platform for family offices and endowments.

📺 what to watch

How not to Zoom, how not to fire people.

And finally…

We’ve been busy.

💼 Family Office Careers

On Wednesday, the first Family Office Careers newsletter hit your inboxes. This featured pro tips from a family office recruitment veteran, family office job listings and candidates looking for jobs.

There was a huge amount of interest from family offices and candidates. This newsletter will be back soon by popular demand.

🤝 Family Office Deals

Coming soon - there will be a dedicated Family Office Deals email. This will include some content around deals and will have slots for people to share their deals with a family office audience.

Any feedback or comments on either of these is much appreciated.

Family Office Buzz will be back on Monday (here’s the last edition if you missed it) with more of the best content on family offices and beyond.

Until next week, see you on 𝕏 or LinkedIn

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