Mr Family Office
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Warm Introductions - Connecting with Family Offices

Warm Introductions - Connecting with Family Offices

Mr FamilyOffice
March 08, 2024

Warm Introductions - Connecting with Family Offices

I get a lot of DMs and emails from people with deals for family offices, people looking for jobs in the sector, vendors building tech or providing services for family offices

Essentially people have the same problem:

How to connect with family offices?

One of my most popular newsletters was The Secrets of Connecting with Family Offices. If you haven’t read that, go take a look

This week, it’s another look at connecting with family offices, with a particular focus on warm introductions

Why connecting with family offices is important

Family offices are transforming the business world

With trillions of dollars under management (a number increasing every day), family offices are poised to have a similar impact as public companies, venture capital and private equity once did

🚀 As the sector grows, family offices are becoming a major draw for prospective employees, entrepreneurs, and vendors

Why it’s so difficult to connect with family offices

Many family offices simply don’t want to be found

Discretion and privacy is paramount for many wealthy families. Family offices often operate under the radar to safeguard family interests. This secrecy creates barriers to access and identifying contacts for potential investors or partners

Family offices are selective, targeting investments and vendors that match their specific criteria and values. So they don’t want to be hit with an avalanche of unsuitable deals

Standing out requires more than a compelling pitch; it requires a deep understanding of the family office’s unique goals and interests

Furthermore, the absence of uniform deal evaluation and engagement processes in family offices makes things even more difficult. Each office has its own procedures, reflecting the family's legacy and preferences. This makes personalized strategies and personal introductions crucial for establishing connections

The Power of Warm Introductions

Warm introduction definition: an endorsement or referral from a mutual acquaintance that connects two parties not previously known to each other, enhancing trust and credibility from the outset

Warm introductions can come from employees, advisors, auditors, bankers, accountants etc.

The value of warm introductions cannot be overstated

Being endorsed by a mutual acquaintance significantly elevates the level of trust and receptivity from the outset. This initial credibility is crucial in a family office environment where relationships and trust are paramount

Warm introductions streamline the process of establishing connections with family offices. It helps to ensure a receptive audience for discussions

Leveraging these introductions can dramatically enhance the efficacy of outreach efforts

Best practice: Connecting with Family Offices

A Strategic Approach to Connecting with Family Offices

Research Research Research 🔎

A crucial aspect of successfully engaging with family offices is undertaking comprehensive research to understand the unique conditions and requirements of each family office that is approached

This demands more than surface-level exploration. It means understanding the investment philosophies, interests, and even the personal passions of the principals involved

Research allows you to lead with value, providing genuinely personalized insights

A generic and unresearched approach will be spotted a mile off

Databases and Conferences 🧑‍💻️

Resources such as family office databases can be beneficial. Databases list personnel and investment areas - they can provide the links needed to help facilitate a warm introduction such as; key personnel, investment areas, philanthropic work, advisors/agents

Engaging in industry events, forums, and philanthropic activities can further augment your network, creating credible and personal opportunities for introductions

(again you can find a deeper dive here)

Building Trust and Demonstrating Value 🤝

Upon establishing a connection, the priority should be on imparting value and developing trust rather than focusing solely on transactions. Positioning yourself as a partner dedicated to the family office's long-term goals can significantly enhance credibility and facilitate a deeper engagement

Demonstrating thought leadership, for example, by sharing insights on market trends and innovations can solidify one's standing as a trusted advisor rather than just a service provider

I have seen investment funds offer family offices complimentary reviews of current asset allocations and investment strategies. By offering these no-cost assessments, the funds were able to demonstrate their expertise and commitment to adding value. It has set the stage for rapport, trust, and a mutually beneficial working relationship

Remember it’s a Family 👨‍👩‍👧‍👦

Don’t forget that at the heart of every family office is a family

You need to nurture relationships that extend beyond business transactions. Showing genuine interest in the personal well-being and interests of family members can help build lasting connections that transcend professional networking

So what about cold calling? 🥶❄️

Warm introductions trump cold calling

But does cold calling have a place?

What should you do if you can find no mutual connections?

When approached the right way, cold calling can open doors, reaching potential partners who are outside your immediate network

But starting the day with a list of 100 family offices and a telephone is not the way ☎️

Connecting with family offices still necessitates a highly personalized approach. Before picking up the phone, thorough research is imperative to understand the office’s investment focus, philanthropic interests, and any recent news or developments

This knowledge allows you to tailor your pitch, demonstrating an understanding of their needs and how your proposal aligns with their goals. It’s clearly hard work - but it is the only way to get meaningful result

It’s also crucial to have a clear, concise, and compelling introduction that captures attention within the first few seconds

Remember, respect and politeness go a long way; acknowledge the interruption, and be prepared to provide or schedule a more detailed presentation at their convenience

While the success rate of cold calling will not match that of warm introductions, if done correctly it can be the first step in a relationship with a family office

Once again.. for a deeper dive, see The Secrets of Connecting with Family Offices

𝕏 highlights

A not-entirely serious tweet

You don't get rich working for a family office... you only attain new levels of relative poverty
— Mr Family Office (@MrFamilyOffice)
1:05 PM • Mar 6, 2024

When it’s bonus time…

What do you do when you receive an astronomical bonus?
Act disappointed
Lessons from 1980s Saloman Brothers:
"At the end of each year the people on the Salomon Brothers trading floor dropped whatever they were doing for a period of several weeks and traded their careers. What… twitter.com/i/web/status/1…
— Mr Family Office (@MrFamilyOffice)
2:10 PM • Mar 5, 2024

This one started some conversations:

I know a guy with a $30mn home
but no home insurance
a $4mn boat
but no boat insurance
a rich life
but no life insurance
— Mr Family Office (@MrFamilyOffice)
7:29 PM • Mar 1, 2024

📚 what to read

Money Men by Dan McCrum was recommended to me by a follower on X. It charts the unbelievable story of the Wirecard scandal. In fact it’s been adapted for Netflix… look out for Skandal!