Why Formalize a Single Family Office Early
At sunrise in front of his new offices in Key Biscayne, Richard C. Wilson records a short video about formalizing a single family office.
Richard C. Wilson speaks to owners who remain active in an operating business and wonder whether a single family office makes sense before their wealth is liquid. He explains what he sees as the value of formalizing one, from how an owner presents the family to how the owner oversees its wealth and business interests.
In this video: Richard C. Wilson (CEO of The Family Office Club)
What they said
- Richard on shared property deals. Richard says a family considering a $300 million property might want to put in $150 million and share the deal with a credible peer. He says this could avoid co-investment fees, fund fees, sponsor fees and promote waterfalls. (at 1:56)
- Richard on direct business deals. Richard says relationships among family offices can surface direct investment opportunities in private operating businesses. Those connections can extend beyond a circle of business friends or brokered deals. (at 2:51)
- Richard on coordinating property sales. Richard says a property sale he was considering would have a large tax impact, so he needed to wait 14 months before selling the second property. He warns that moving quickly without discussing plans across a 360-degree team can lead to small mistakes that add up. (at 3:18)
- Richard on search visibility. Richard says his office, The Miami Family Office, usually appears first in Google results, sometimes second or third. He says that visibility brings inquiries from people looking to meet Miami family offices. (at 4:14)
- Richard on equity partnerships. Richard says connections with other successful business owners can lead to equity trades, joint ventures, partnerships, and buying or selling part of a business. He describes these as ways to gain more ground in a core area of focus. (at 4:43)
In their words
"you can get great access to deal flow by being known in the family office community"
"working with these types of smart successful people because they think much differently, much more creatively and strategically."
Why it matters if you are building or preserving great wealth
A family office's public identity can bring an owner into conversations beyond existing business relationships. Richard's example of a Latin American bank approaching through search puts a possible institutional partner in reach, even when that relationship did not come from the owner's operating business.
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 business opportunity did Richard describe?
He described a non-brokered deal that he called a "$25 million $4.5 million EBITDA deal." The founder's son had reached out, and Richard said he had dined with the family a few times.
How often had the question come up in Richard's conversations?
He said he had discussed it with three Miami individuals.
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.