What do family office investors look for before backing a fund manager?
Short answer: Chris says a strategy his group can't explain may fall outside its reach even when a fund makes money, so strong results alone may not earn consideration.
In a discussion on Richard C. Wilson's YouTube channel, investors describe what they look for when considering managers and investment opportunities.
An investor on transparency and fees
An investor says they look for transparency, team experience, a track record and a proper fee structure. They value these qualities in a co-investor or a manager.
Chris on people and opportunities
Chris says his group has often invested through people they knew or were introduced to. He looks for high quality and reliability, and asks why an opportunity exists, why it may last and whether it's easy to understand.
Michael on five review areas
Michael describes a five-part process: people, processes, performance, plans and platforms. He reviews team roles, how investments are selected, whether performance makes sense and can be repeated, the manager's plans and the systems used to run the business.
Christopher on process accuracy
Christopher says even routine processes can be difficult to get right. Their office defined processes and assigned people to improve response times. He says processes support accuracy, especially for illiquid investments that require extensive diligence and documentation.
"we think transparency is critical we're extremely transparent"
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Focus on one main cause. Her family found its giving more satisfying and impactful once it chose primary education for the underprivileged in India.
- Binod K. Chaudhary: Never chase a deal out of desperation. Stay cool and look at every part of the deal. Have your advisers and your finance team review it critically. Your counsel should review it too.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
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Frequently asked questions
What do family office investors look for before backing a fund manager?
Chris says a strategy his group can't explain may fall outside its reach even when a fund makes money, so strong results alone may not earn consideration.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.