What do family office advisers look for in private market managers?
Short answer: Isaac says a private market manager has to deliver performance, justify illiquidity and pass the firm's due diligence. Terms, fund size and platform also matter. Greg says specialist knowledge, a defensible position and an ecosystem that can help a company grow make a manager stand out.
In a panel on Richard C. Wilson's YouTube channel, family office professionals discuss what they seek in private market managers.
Isaac on terms and platform
Isaac says that after meeting managers, his team considers terms, fund size and the platform. They put qualified managers in front of clients. (at 6:59)
Greg on a manager's moat and ecosystem
Greg says a manager's moat and ecosystem catch his attention. He gives a defense industry buyout group as an example, describing partners with security clearances and advisers who can help identify ways to accelerate a company's growth. (at 11:35)
"when I see MOAT and I see ecosystem, I get excited."
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 advisers look for in private market managers?
Isaac says a private market manager has to deliver performance, justify illiquidity and pass the firm's due diligence. Terms, fund size and platform also matter. Greg says specialist knowledge, a defensible position and an ecosystem that can help a company grow make a manager stand out.
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.