Effective strategies for pitching to family offices

Family offices are not your typical institutional investors. They often have more flexibility in their investment decisions, longer investment horizons, and a broader range of objectives beyond mere financial returns. Despite the potential, connecting with family offices can be daunting. Unlike publicly traded companies or wellknown investment firms, information about family offices can be scarce, making it difficult to research and approach them effectively. Moreover, family offices are inundated with pitches, making it essential to stand out from the crowd.

Success in this arena requires a deep understanding of the specific family office you are targeting, their investment philosophy, and their broader objectives. This paper provides a walk-through of the strategies necessary to effectively research, approach, and email pitches to family offices, so as to help navigate this complex but potentially rewarding landscape.

The family office mindset

Before crafting a pitch, it is crucial to understand the unique characteristics and motivations of family offices. This knowledge will help you tailor your approach and increase your chances of a positive interaction.

Family office investment objectives

Understanding the investment objectives of family offices is key to aligning your pitch with their goals. Here are the main areas to consider:

• Wealth preservation versus growth: Family offices often walk a tightrope between preserving wealth and seeking growth. Some prioritise maintaining the family's assets for future generations, while others pursue more aggressive growth strategies.
• The generational perspective: Many family offices think in terms of decades, not quarters. They are concerned with passing wealth and values to future generations. This long-term outlook can influence their investment time horizons and risk tolerance.
• Impact and values: Increasingly, family offices are looking for investments that align with their history, values, or contribute to a legacy. This might include impact investing, philanthropic tie-ins, or investments in specific industries

Family offices often have unique decision-making structures that differ from traditional institutional investors. Understanding these processes can help you prepare your pitch more effectively:

• Key decision-makers and influencers: Identify the primary decision-makers, whether they are family members, professional managers, or external advisers. Each may have different priorities and levels of influence.
• Investment committees: Many family offices have formal investment committees that review and approve investment decisions. Understanding the composition and dynamics of these committees can be crucial.
• The due diligence deep dive: Family offices are known for their rigorous due diligence processes. They often have sophisticated financial teams that will scrutinise opportunities presented. Be prepared for this level of examination and have comprehensive documentation ready.

Family offices may specialise in certain asset classes or industries based on their expertise or interests. Some prefer direct investments for greater control, while others opt for the diversification of fund investments. Understanding these preferences, along with their risk appetite and investment timeframes, can help position an opportunity appropriately.

Crafting an effective approach

Once the family office mindset is understood, the next step is to prepare a pitch. A well-crafted approach can make the difference between capturing interest and being overlooked.

Research is the key

Before even thinking about crafting a pitch, thorough research is essential. Family offices appreciate it when you have done your homework:

• Uncover the family's story: Dive into the family's history, values, and the source of their wealth.
• Analyse past investment patterns: Look for trends in their previous investments. Do they favour certain industries or types of deals?
• Understand current portfolio and goals: Try to get a sense of their current investment portfolio and strategic objectives.

With your research in hand, it is time to craft a value proposition that resonates with the specific family office being targeted. The key is to align your opportunity with their investment objectives, whether that is wealth preservation, growth, or impact investing.

Clearly articulate what makes your opportunity special. At the same time, anticipate potential concerns or objections and address them proactively in your pitch. This demonstrates foresight and thorough planning, qualities that family offices value highly. Tailoring a value proposition in this way significantly increases the chances of capturing a family office's interest and standing out from the crowd.