Centralized online access to the private capital markets.

Evaluating a Multi-Family Office

Multi-Family Offices are more and more common. Are they right for you?

The family office, a product of the early twentieth century, is rapidly evolving in response to a number of factors: the turmoil from the recent consolidation and personnel changes in financial services firms, a heightened sense of the need for improved risk management and objectiv­ity and the high cost of attracting and retaining the professional talent needed today to advise and serve family members on a wide range of issues.

Just a couple of decades ago a fortune of $50 million was more than sufficient to justify directly employing a staff of accountants and in­vestment managers to keep track of the family finances, including the holdings of various trusts and foundations. Today, the “break even” point is closer to $250 million and climbing. Hence, many former single-family offices have grown into multi-family offices (“MFOs”), offering unrelated families the ability to share a CFO, CIO, tax professionals, and experienced administrative staff as well as valuable intellectual and technology resources.

In many ways it has parallels to the emergence of fractional jet ownership as high net worth individuals ask, “Given my needs, would I rather own all of a single engine plane or a share of a private jet? And, would I like to pay someone else to worry about hiring the peo­ple to fly it and care for it, handle security, do the safety checks, update the insurance and all the other hassles of maintaining a group of personal employees?” Similarly, contracting for a “share” of the staff at an established MFO often can securely provide access to talent, processes, intellectual capital and sys­tems that simply cannot be justified at lower asset levels.
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Growth of Private Company Investing: An ACE Portal Event

An ACE Portal hosted and VC Experts moderated panel on “How Integrating Platforms, Data, and Analytics Will Define Private Company Investing.”

Panelists will include representatives from IPREO, Crowdnetic, ACE, VCE, and TAAPS.

The panel will be followed by a visit to the NYSE Trading floor to see the Closing Bell ring.  After the Closing Bell, there will be a Cocktail Hour with a select audience of family offices, institutional investors, and leading investment banks.

 

 

Family Offices and Investing in Private Securities

ACE Portal By ACE Portal Tue, Sep 23, 2014 Videos Connections

Peter Williams, ACE Founder and CEO, speaks with Angelo Robles, the CEO and Founder of the Family Office Association (FOA). This is a can’t miss interview for families interested in private securities and those interested in understanding how family offices look to source and diligence opportunities.

Specific topics include:

  • Challenges facing a Family Office interested in direct investing
  • Issues of maintaining family confidentiality versus increasing access to deals
  • Changes to access via fund structures or direct investing
  • Key talent areas needed inside of the family office for this asset class

For more from Angelo, see his interview on defining exactly what a family office is and how it works


 

The Family Office Association is a global membership community dedicated to providing UHNW families the resources to solve their most difficult challenges and achieve their respective and collective goals. Their strategic meetings and forums offer insight to grow wealth, strengthen legacy, and unite multiple generations through shared interests and passions.

Defining a Family Office: Common Traits & Key Differences

Peter Williams, ACE Founder and CEO, speaks with Angelo Robles, the CEO and Founder of the Family Office Association (FOA). Their discussion ranges across:

  • Defining a Family Office
  • Understanding what drives these offices
  • Navigating the myriad differences between families
  • Examining how FOA serves families and unlocks value for them and their service providers

For more from Angelo, see his other video on direct investing in private securities.


 

The Family Office Association is a global membership community dedicated to providing UHNW families the resources to solve their most difficult challenges and achieve their respective and collective goals. Their strategic meetings and forums offer insight to grow wealth, strengthen legacy, and unite multiple generations through shared interests and passions.

Using A Placement Agent in Early-stage Rounds

This article first appeared in the “Introduction to VC and PE Finance” Encyclopedia by VC Experts

Should I use a Placement Agent to Raise Money

Founders, who are desperate for financing, debate whether the faucet will turn on if they engage a placement agent. This is a question to be addressed in a real-world context. In the first place, the great majority of first-round financing is not economically interesting to an investment-banking firm. The fee for a placement is usually in the range of 2 to 5 percent of the amount raised. Assuming a $1 million first-round financing, a fee of $20,000 to $50,000 is not likely to attract many takers in the investment-banking fraternity, when fees for acting as financial adviser in contested merger-and-acquisition transactions run into eight figures. There are exceptions to this, as in any other proposition. Encore Computer, because of the splendid reputation of its founders, attracted a high degree of interest from major-bracket investment bankers in the seed round; William Poduska, on leaving Apollo Computer and organizing Stellar, was able to titillate investment-banking appetites to a fever pitch. (Neither firm, it should be noted, remains as an independent entity.) However, the traditional founder is wasting his time beating down the doors of the elite investment bankers to help raise money in the early rounds. Smaller investment-banking houses sights are set lower than Morgan Stanley or Goldman Sachs, are more likely candidates, but even they are not enthusiastic about hitting the pavement to arrange a first-round investment because the amount of work is enormous and the payoff is often uncertain.

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