How Family Offices Build a Platform for Better Deal Flow
Richard C. Wilson discusses how owners can build a distinct platform around a niche.
Richard C. Wilson describes how a family office platform can connect businesses, distribution and capital to shape deal access.
In this video: Richard C. Wilson (Presenter)
What they said
- Earlier deal access through distribution. Richard says a platform can help a fund or investor see deals first, exclusively, and at a better valuation. He links that access to superior distribution, reach and strategic value. (at 0:28)
- Connected holdings and shared information. Richard describes holdings that can help each other in different ways. In his example, maintenance and commercial leasing businesses may provide information that helps an owner assess a building. The leasing business learns that a tenant will not renew before the building owner does. (at 2:45)
- A distinct position in a niche. Richard says a firm can design its own approach and acquire small pieces of intellectual property to stand apart in its industry. He also describes mapping rivers of demand and building a more valuable structure in front of them. (at 6:58)
- Activity that fits the core business. Richard says founders can consider activity that fits with their core business, while keeping that core business healthy. He cites Mark Cuban's view that many businesses struggle from indigestion rather than a lack of opportunity. (at 9:20)
- Patience, capital and momentum. Richard says family offices can have more patience than a private equity firm and more capital than an angel investor. He compares the momentum from connected holdings to a flywheel. (at 3:41)
In their words
"clarity multiplies action and building your own platform can provide clarity to others on exactly why they should be doing business with you."
"It's the business within your business that's the most valuable business, and it's more opaque and less transparent to others when there is some sophistication to multiple moving parts within your business."
Why it matters if you are building or preserving great wealth
Richard says a founder whose platform is clear can get an investor to lean forward when they see why that founder sources better deals in the niche. If the platform is hard to understand, the conversation can stall before the founder makes an offer.
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.
See the data
Frequently asked questions
What allocation did Richard mention for a platform strategy?
Richard said some families might invest 2 to 8% or 15% into their offensive game. He presented this as his view of how some families approach platform building.
What did Richard say can happen after securing debt for several business lines?
He said trust may build with a lender, allowing a business to return for lending faster, on better terms, and with different collateral options.
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.