The family office book : investing capital for the ultra-affluent

**Key strategies for running a family office for fund managers**Understanding the basics of the family office industry is essential if you want to succeed in establishing a successful fund for a wealthy family. That's where __The Family Office Book__ comes in. Outlining key strategies for family offices, from what a family office is to how the industry operates, and important global differences, the book is packed with interviews with experts from leading family offices. Providing readers with need-to-know tips and tools to succeed, __The Family Office Book__ gives current and future practitioners everything they need to know about this popular segment of the financial industry. * Includes investment criteria, presented as a roadmap showing how several family offices are allocating capita * Outlines strategies for fund managers of all types, including mutual funds, real estate funds, private equity, and hedge funds on raising capital in this field * Features interviews with the most famous and sought after family offices to give real-life examples of successful family offices in action A comprehensive and reliable resource, __The Family Office Book__ details exactly how family offices are choosing investment managers and why, and how, to break into the industry. The Family Office Book 5 Contents 11 Introduction 15 IS THIS BOOK RIGHT FOR YOU? 15 WHAT THIS BOOK IS NOT 16 WHAT IS UNIQUE ABOUT THIS BOOK? 16 NAVIGATING THIS BOOK 17 PART One Family Office Fundamentals 19 CHAPTER 1 The Family Office Industry 21 WHAT IS A FAMILY OFFICE? 21 THE FAMILY OFFICE UNIVERSE 23 THE HISTORY OF FAMILY OFFICES 24 STATE OF THE FAMILY OFFICE INDUSTRY 27 WHO USES A SINGLE OR MULTI-FAMILY OFFICE? 28 WHY FAMILY OFFICES? 30 MORE MONEY, MORE PROBLEMS 31 FAMILY OFFICE INDUSTRY CONFERENCES 31 CONCLUSION 32 CHAPTER 2 Family Office Services 33 ULTRA-AFFLUENT CLIENTS HAVE DIFFERENT NEEDS 33 FAMILY OFFICE SERVICES 35 ADDITIONAL BENEFITS AND LIFE MANAGEMENT SERVICES AS A COMPETITIVE ADVANTAGE 35 SINGLE VERSUS MULTI-FAMILY OFFICE SERVICES 37 DIFFERENCES IN GLOBAL FAMILY OFFICE SERVICE OFFERINGS 38 CONCLUSION 39 CHAPTER 3 Family Office Operations 41 OUTSOURCED MODEL 41 Expert Generalist Model 42 Institutional Offering Model 42 FAMILY OFFICE TEAM MEMBERS 43 FAMILY OFFICE INVESTMENT COMMITTEES 45 BOARD OF ADVISORS 45 FAMILY OFFICE GOVERNANCE 45 INDIVIDUAL FAMILY GOVERNANCE 46 FROM CPA TO FAMILY OFFICE CEO 47 FAMILY OFFICE SERVICE PROVIDERS 49 DEVELOPING A WELL-OILED FAMILY OFFICE MACHINE 50 IMPLEMENTING PROCESSES, PROCEDURES, AND SYSTEMS IN YOUR FAMILY OFFICE 50 CONCLUSION 50 CHAPTER 4 The Ultra-Affluent’s Guide to Selecting a Family Office 51 STARTING A SINGLE FAMILY OFFICE VERSUS JOINING A MULTI-FAMILY OFFICE 51 OBJECTIVE FAMILY OFFICE SELECTION ADVICE 52 WHAT DO YOU WANT? 52 CHARACTER JUDGMENTS 53 SEVEN CRITICAL FAMILY OFFICE QUESTIONS TO ASK 54 FAMILY OFFICE VETERAN QUOTES ON HOW TO SELECT A FAMILY OFFICE 55 FAMILY OFFICE ONE-PAGER EVALUATION FORM 60 CONCLUSION 60 CHAPTER 5 Family Office Marketing 63 YOUR CLIENT AVATAR 64 CRYSTAL CLEAR EDGE 65 BRIAN TRACY INTERVIEW EXCERPT ON CAPITAL RAISING 66 CAPITAL RAISING TRIFECTA 67 CAPITAL RAISING FUNNEL 68 Level 1—Interviews or Articles Published 69 Level 2—White Papers, Reports, or Surveys 69 Level 3—Books Published 70 Level 4—Speeches (Live or Recorded) 70 Level 5—Face-to-Face Meetings 71 Level 6—Capital 71 Implementation Suggestion 71 STORYTELLING 72 PERSUASIVE WRITING (COPYWRITING) 76 Copywriting Tactic #1— Headlines 77 Copywriting Tactic #2— The Hook 77 Copywriting Tactic #3— The Call to Action 78 Copywriting Tactic #4—Personalization 78 BRIAN HUGHES INTERVIEW ON FAMILY OFFICE BUSINESS DEVELOPMENT 78 CONCLUSION 86 PART Two Family Office Veteran Interviews 89 CHAPTER 6 Single Family Office Interviews 91 FAMILY OFFICE INTERVIEW WITH MICHAEL CONNOR OF CONSOLIDATED INVESTMENT GROUP 92 FAMILY OFFICE INTERVIEW WITH ELIZABETH HAMMACK OF CM CAPITAL CORPORATION 106 FAMILY OFFICE INTERVIEW WITH FRANK CASEY 119 FAMILY OFFICE INTERVIEW WITH JOHN GRZYMALA 134 FAMILY OFFICE INTERVIEW WITH MATTHEW ANDRADE, DIRECTOR OF INVESTMENT ANALYSIS AT KINNEAR FINANCIAL 140 FAMILY OFFICE INTERVIEW WITH ANGELO ROBLES, PRESIDENT OF THE FAMILY OFFICE ASSOCIATION 149 CONCLUSION 164 CHAPTER 7 Multi-Family Offices Interview Transcripts 165 FAMILY OFFICE INTERVIEW WITH CHARLES GRACE OF THRESHOLD GROUP 165 FAMILY OFFICE INTERVIEW WITH LUKAS DOERIG OF MARCUARD FAMILY OFFICE 177 FAMILY OFFICE INTERVIEW WITH JEFF COLIN, FOUNDER OF BAKER STREET ADVISORS 189 FAMILY OFFICE INTERVIEW WITH THOMAS MELCHER OF HAWTHORNE MULTI-FAMILY OFFICE 205 FAMILY OFFICE INTERVIEW WITH GREG KUSHNER, FOUNDER OF LIDO ADVISORS 218 FAMILY OFFICE INTERVIEW WITH BOB BENSON, CHIEF INVESTMENT OFFICER OF LAIRD NORTON TYEE 235 CONCLUSION 247 PART Three Family Office Mechanics 249 CHAPTER 8 Family Office Investments 251 TRADITIONAL INVESTMENTS 252 ALTERNATIVE INVESTMENTS 252 VENTURE CAPITAL AND ANGEL INVESTOR INVESTMENTS 253 INFRASTRUCTURE INVESTMENTS 254 HARD ASSET INVESTMENTS 254 FAMILY OFFICE INVESTMENT PROCESS 255 THREE FAMILY OFFICE PORTFOLIO CONSTRUCTION MODELS 257 THE OPERATING BUSINESS SANDBOX MODEL 257 THE DIVERSIFIED INSTITUTIONAL MODEL 259 THE HYBRID MODEL 259 FAMILY OFFICE INVESTMENT COMMITTEES 260 INVESTMENT COMMITTEE EXAMPLES 261 STRATEGIC VERSUS TACTICAL ASSET ALLOCATION 265 Excerpt from Interview with Graham Harrison of Asset Risk Consultants 266 INSTITUTIONAL CONSULTING FIRMS AND FAMILY OFFICE INVESTING 268 FAMILY OFFICE INTERVIEW WITH DAVID THOMAS, CEO OF EQUITAS CAPITAL ADVISORS, LLC 269 CONCLUSION 280 CHAPTER 9 Fund Manager Selection and Deal Flow 281 THE SIX-STEP FUND MANAGER SELECTION PROCESS 282 MANAGED ACCOUNT TRENDS 284 FUND MANAGER PREFERENCES 285 GLOBAL FUND MANAGER DUE DILIGENCE 285 FAMILY OFFICE PARTNERSHIPS WITH FUND MANAGERS 289 MANAGING DEAL FLOW OVERLOAD 290 OBJECTIVE CHARACTER ANALYSIS 291 THE 6 CS OF CHARACTER ANALYSIS 292 FAMILY OFFICE INTERVIEW WITH EVAN COOPERMAN OF ARTEMIS WEALTH ADVISORS 296 CONCLUSION 308 CHAPTER 10 The Future of the Family Office Industry 309 THERE IS NO FAMILY OFFICE INDUSTRY 309 SHIFTING INVESTMENT CRITERIA 313 FAMILY OFFICE JOB GROWTH 313 FAMILY OFFICE TRAINING 313 NEW GLOBAL HOT SPOTS 314 FOUR GLOBAL DRIVERS OF FAMILY OFFICE INDUSTRY GROWTH 315 CONCLUSION 317 Conclusion 319 APPENDIX Family Office Newsletter 321 About the Author 323 RICHARD C. WILSON: FAMILY OFFICE FOCUSED 323 THE FAMILY OFFICES GROUP & RICHARD WILSON CAPITAL PARTNERS LOGO 324 RICHARD WILSON CAPITAL PARTNERS, LLC 325 Qualified Family Office Training 327 Index 329

Praise for The Family Office Book

"Packed with information about what high-net-worth individuals want, need, and get from professional money managers. Richard Wilson pulls back the curtain on the almost mystical world of the super-wealthy. For investors who want to learn what the rich expect from the stewards of their money—and for anyone interested in getting into the family office business. Expert interviews serve up details about what makes the family office an important element of the global investment community—and what the future family office will look like."
—Pimm Fox, Bloomberg TV and radio anchor, Taking Stock with Pimm Fox

"Richard Wilson works with family offices and ultra-wealthy clients on a day-to-day basis. The Family Office Book provides a unique perspective into exactly how those with $20M, $100M, or $1B are using family office wealth management vehicles to manage their capital."
—Russ Alan Prince, President, Prince & Associates, Inc.

"The Family Office Book is unique as the most comprehensive study of the family office world. It provides important perspective to families, family office management, and clients of family offices. A must-read."
—Charles B. Grace Jr., Director, Threshold Group; founder, Ashbridge Investment Management; and grandson of the former president of Bethlehem Steel Company

"Anyone who wants to be in the family office space needs to read this book. It has countless bits of valuable advice. It will be required reading for everyone that joins my family office team."
—Noah B. Rosenfarb, CPA, ABV, PFS , Managing Director, Freedom Wealth Advisors

"The Family Office Book is one of the few books covering the subject matter with a global scope. The real-life interviews with leading family offices from all over the world are amazing and a terrific testament to the superb network Richard has within this taciturn industry. The book is a treasure chest of insight and a one-of-a-kind resource for anybody who is regularly working together with family offices or high-net-worth individuals in general anywhere in the world."
—Michael Hartmann, Esq., LLM, private banking lawyer

Key strategies for running a family office for fund managers

Understanding the basics of the family office industry is essential if you want to succeed in establishing a successful fund for a wealthy family. That's where The Family Office Book comes in. Outlining key strategies for family offices, from what a family office is to how the industry operates, and important global differences, the book is packed with interviews with experts from leading family offices.

Providing readers with need-to-know tips and tools to succeed, The Family Office Book gives current and future practitioners everything they need to know about this popular segment of the financial industry.

• Includes investment criteria, presented as a roadmap showing how several family offices are allocating capita
• Outlines strategies for fund managers of all types, including mutual funds, real estate funds, private equity, and hedge funds on raising capital in this field
• Features interviews with the most famous and sought after family offices to give real-life examples of successful family offices in action

A comprehensive and reliable resource, The Family Office Book details exactly how family offices are choosing investment managers and why, and how, to break into the industry.

Key strategies for running a family office for fund managers Understanding the basics of the family office industry is essential if you want to succeed in establishing a successful fund for a wealthy family. That's where The Family Office Book comes in. Outlining key strategies for family offices, from what a family office is to how the industry operates, and important global differences, the book is packed with interviews with experts from leading family offices. Providing readers with need-to-know tips and tools to succeed, The Family Office Book gives current and future practitioners everything they need to know about this popular segment of the financial industry. Includes investment criteria, presented as a roadmap showing how several family offices are allocating capita Outlines strategies for fund managers of all types, including mutual funds, real estate funds, private equity, and hedge funds on raising capital in this field Features interviews with the most famous and sought after family offices to give real-life examples of successful family offices in action A comprehensive and reliable resource, The Family Office Book details exactly how family offices are choosing investment managers and why, and how, to break into the industry.