How to Work With Family Offices

As venture capitalists and institutional investors tighten their purse strings, real estate operators and entrepreneurs are looking elsewhere for sources of funding for new companies and deals. We’ve covered a number of emerging financing models here on Thesis Driven from accelerator programs like ReSeed to new debt providers like Cherry Lawn.

But today we’ll tackle the biggest and perhaps most enigmatic of them all: family offices. There are more than 7,000 family offices worldwide managing an estimated $5.9 trillion, more than four times the size of the market cap of all REITs combined. And over the past decade, alternatives—including venture capital and real estate—have become an increasingly important part of family office portfolios.

Today’s Thesis Driven letter will explore the world of family offices with the aim of giving real estate operators and entrepreneurs a better understanding of how these offices work—and how they could find the right family office partner for their next project or financing round. We’ll cover:

• The taxonomy and structure of family offices;
• How family offices evaluate deals and approach partnerships with GPs and entrepreneurs;
• Tips for identifying and building relationships with family offices;
• Interviews with several leaders at family offices about their experiences and approach.

Read on for more…