More and more often, founders and investor relations professionals are looking to raise capital from family offices and it’s easy to see why. According to Deloitte, the total estimated wealth for global families with family offices is expected to exceed $9 trillion by 2030. This reflects a striking 189% rise between 2019 and 2030. For fundraisers, family offices are attractive because they often represent flexible, patient capital and can frequently move faster than traditional institutions, with fewer layers of bureaucracy and more discretion in decision-making.
That said, the family office world is notoriously difficult to break into. The landscape is highly fragmented and includes a full spectrum of firms from high-net-worth individuals with very small teams to highly professionalized investment organizations that look and behave more like traditional asset managers. Brad Gulbrandsen, Founder and Managing Partner of permanent capital investment firm Northrim Horizon, notes how this impacts decision-making, sharing that some family offices “operate like institutions with formal processes, while others are driven almost entirely by the family principal.” Many family offices are intentionally opaque and inaccessible: assets are often held in trusts, many offices do not have websites, and portfolio holdings are not disclosed. Much of the activity in this space happens quietly and off market. For fundraisers used to institutional processes and databases, this opacity can be one of the biggest challenges.
Despite their privacy, family offices rarely operate in a vacuum. As Alex Pardy, a wealth advisor with UBS Private Wealth Management, noted, “We’re seeing families being incredibly thoughtful and strategic with their investments.” He notes that in addition to “economic and values-based alignment,” family offices are taking “more of a VC-type approach, emphasizing a flywheel with access to deal flow and network effects.” Ultra-wealthy investors are often deeply curious about what their peers are seeing and backing, and the number of both formal and informal investment clubs continues to rise. A family office that is well connected within these networks may gain access to better deal flow or more attractive terms, reinforcing just how relationship-driven this ecosystem can be.
At the end of the day, while family offices are focused on generating strong returns, the ecosystem is often more collaborative than competitive. Unlike traditional institutions, family offices are not always competing directly with one another and often co-invest or share opportunities. Many principals are motivated not only by financial outcomes, but by the ability to add value to the teams they back. As one Boston-based family office principal (who wished to remain anonymous) shared, “As former operators, we’re always more drawn to investments where we can leverage our own skill set, not only to diligence the deal and generate strong returns, but also to add real value to our partners through industry connections and domain expertise.”
For founders, investor relations professionals, and fund managers, the path forward is clear: success in this market is less about broad outreach and more about identifying the right fit and building genuine, trust-based relationships over time. With that in mind, here are a few tips to guide your approach:
10 Tips for Pitching Family Offices
- Take the time to understand the family office. Do your homework on the office’s scale and structure, including team size, approximate AUM, typical deal size, and whether they focus on direct investments or funds. The firm’s area of expertise is particularly important, as many prioritize opportunities where they can meaningfully support the business.
- Build your own target list. Fundraisers need to be proactive and creative in assembling a target list using advisors and other service providers, co-investors, and other trusted intermediaries who already work with family offices. Relationships can and should be cultivated over time when there isn’t an “ask” or investment opportunity.
- Understand who drives decisions. In most cases, there is a professional investment lead managing diligence and process, while the final decision-maker may in fact be the family principal. Keep in mind that each stakeholder may be looking for different signals, ranging from risk management to values alignment.
- Be thoughtful about tax efficiency in your structuring. Unlike many institutional investors, family offices are often highly exposed to taxation, which can materially impact net returns. Your pitch should reflect an awareness of this reality and demonstrate that you’ve considered tax-efficient deal structures, jurisdictions, and vehicles where appropriate.
- Clearly articulate the path to liquidity. While family offices understand that private investing comes with illiquidity, they still want clarity around duration and exit expectations. Providing a realistic view on likely holding periods, potential exit routes, and timing scenarios is essential.
- Prioritize warm introductions and shared connections. Much of this industry runs on networks and trust, so a direct introduction from a credible, trusted partner who can vouch for your deal and your character is incredibly important and can help “derisk” the opportunity. Absent that, shared backgrounds such as an alma mater, career paths, or geographic ties can help establish credibility.
“If you’re raising capital and feel like you’re on a circuit of endless introductions, that’s simply part of the process. There are no shortcuts to building the relationships and trust that ultimately drive decisions.” – Family Office Principal (Boston, MA)
- Understand the family behind the office. While public information is limited, fundraisers should seek back-channel insights into the family’s culture, past successful investments, impact goals, and philanthropic activities, and then reflect that understanding in a thoughtful and personalized pitch. As Brad from Northrim notes, “With family offices, the conversation is less about fitting a mandate and more about fit with the family’s mindset.”
- Be exceptional at telling your own story. Especially for smaller or less institutional family offices, decisions are often driven by people betting on people, so clarity, authenticity, and conviction in your personal and professional narrative and that of your firm matter just as much as the numbers.
- Ask for referrals, even after a pass. When a family office decides not to move forward, don’t treat it as the end of the conversation. Thoughtfully ask whether they can point you to other family offices that might be a better fit based on sector focus, stage, geography, or prior deals.
- Remember that not all family offices are created equal. As much as family offices are evaluating you, you should also be evaluating them to ensure alignment on values, expectations, and behavior, and to confirm they will be thoughtful, respectful long-term partners doing the deal for the right reasons.
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