Single Family Offices, elite private wealth management entities established by affluent families, trace their origins back to John D. Rockefeller in the early 19th century. Initially created to manage the fortunes of individual families, the landscape has since evolved into multi-family offices, pooling together resources from multiple high-net-worth individuals. With over 7,300 single Family Offices worldwide, managing a staggering $5.9 trillion in assets and a further $9.4 trillion in family wealth, these offices have become pivotal in the financial sphere. Despite the allure and potential of Single Family Offices, a significant number of ventures fail to secure their desired funding—approximately 25% to 30%, as noted by the National Venture Capital Association. To bridge this gap and successfully tap into Family Office wealth, this article will guide you through three crucial strategies to enhance your funding prospects and avoid the common pitfalls that deter potential investors.

Trista Bridges, Principal and Cofounder at Read the Air, Japan: "I’ve been a member of the Global Investment Leaders Club for two years now and I can say that it has been a wonderful experience. The Club has been incredibly rewarding, providing a unique opportunity to meet a diverse group of people I wouldn’t have encountered otherwise"

Step 1. Timing Your Approach and Choosing the Right Method

Securing funding from Single Family Offices begins with precision in timing and the right strategy in approaching. According to Northern Trust’s Family Office Study, over 65% of SFOs reassess their investment strategies every 18-24 months. This statistic indicates a potential window when these offices are more likely to consider new investment opportunities, making it an ideal time for presenting your project. As the landscape of SFOS evolves, knowing when and how to approach them can set your funding request apart. Aligning your pitch with the periods when Single Family Offices are reviewing and possibly adjusting their investment strategies could significantly boost your chances of getting noticed and funded.

Moreover, the approach itself is crucial. Elaine Chow, Principal at Trinity Capital in Hong Kong, highlighted the importance of personal connections during the G.I.L.C. Family Office Gathering. She emphasized that unsolicited emails often get ignored due to their impersonal nature. "If you shoot a random email, it will probably be ignored because we don’t even know who they are. But finding a common connection on LinkedIn or getting introduced by a trusted person makes you and your project far more interesting from a Family Office perspective.” This advice underscores the value of leveraging your professional network to secure a warm introduction, thereby increasing the receptivity and interest in your proposal. By carefully planning the timing of your approach and utilizing a personalized strategy through trusted networks, you can enhance the likelihood of engaging Single Family Offices effectively, paving the way for a successful funding partnership.

Guneet Banga, Executive Director at The Caravel Group Limited, Hong Kong: "For me being a a member of the Club has been a fantastic experience to meet and interact with so many interesting investors and industry leaders. It has been phenomenal in terms of my own growth and the international network connections I’m making with people whom I could potentially be working with in the near future."

Step 2. Research Investment Focus

Before you approach a single Family Office for funding, it’s crucial to understand their investment strategy and ethos deeply. Guneet Banga, Executive Director for The Caravel Group in Hong Kong and a member of the Global Investment Leaders Club, underscores the significance of tailored pitches: “If a project owner can’t be bothered to spend ten minutes researching me, then I just don’t have time for their project. It is a complete waste of both my time and their time. It also shows that the project owners are just randomly pitching SFOS, which is definitely not a good sign.”

To effectively engage a Family Office, you need to research where they have historically invested, what business principles they uphold and what their core values are. This background knowledge is critical not only for respect and professionalism but also for aligning your proposal with their interests. According to a recent UBS Global Family Office Report, 54% of the next generation are expected to maintain the same investment focuses as their predecessors, emphasizing the importance of understanding both current and future investment trends within these offices. By aligning your project with the Family Office’s investment philosophy, you enhance your chances of forging a fruitful partnership.

Marta Albert, Principal at QG Family Office, UK: "Joining the Club has been a positively transformative experience for me. It’s a fantastic community that brings together professionals and individuals with a passion for investment, offering a place to connect with people from all over the world, regardless of where you are."

Step 3. Create Value Throughout

Successful engagement with Single Family Offices goes beyond just securing an appointment; it involves creating and demonstrating value at every stage of the interaction. A recent survey by Silicon Valley Bank revealed that up to three-quarters of SFOS have committed to direct investments in new ventures they found valuable and profitable. If you're presenting your project to a Family Office, it's crucial to elucidate every aspect of the opportunity in comprehensive detail. If there’s interest in a more engaged role, like a seat on the board, provide clear examples and data to illustrate what their involvement would entail.

Marta Albert, Principal at QG Family Office in the UK and a speaker at the Global Investment Leaders Club Family Office Gathering, highlighted a common oversight: “The main problem people have when they approach Single Family Offices is that they don’t listen. They just insist on their project and disregard what the Family Office members have to say or ask.” This insight underscores the importance of being not just informative but also receptive during your presentation. Ensure you are fully transparent, provide detailed responses and be ready to address any concerns or questions the decision-makers might have. Building trust through these interactions can pave the way for more formal agreements, such as a private placement memorandum, which outlines the terms and legal liabilities of the investment. By maintaining this level of engagement and responsiveness, you not only demonstrate the value of your project but also establish the foundation for a lasting partnership.

Conclusion.

Single Family Offices are a vital source of investment for businesses and projects, blending capital support with strategic partnerships for sustainable success. Establishing a successful relationship with these entities involves dedication and a strategic approach. By meticulously timing your pitch, tailoring your project to align with the Family Office's investment focus and demonstrating value at every interaction, you can facilitate a smoother and more effective funding process. To learn more about the Family Office landscape and have access to first-hand shared insights from investment professionals and heads of single family offices, be sure to check our schedule and register for one of our upcoming events.