How to Raise Capital From Family Office Investors

This article provides some tips and strategies on how to raise capital from family office investors.  Since FOs typically serve only ultra high net worth individuals and families they are sources of huge concentrations of wealth. What this means to smart marketers and advertisers is that by developing just a handful of relationships in this space you may be able to quickly raise your AUM if you run a fund or meet your sales or transaction quota if you work within a bank.

Here are our top tips for raising capital from family office firms:

  • Don’t take the shotgun approach, contact 100-200 firms at a time and move through those contacts over a period of 6-12 months before moving on to new potential contacts to work with. 
  • Start local and meet with as many FOs within your city and state as possible, every face-to-face meeting is worth 5 decent phone conversations with prospects
  • Do your research before you start contacting a FO so that don’t sound like a sales professional when you get them on the phone, act like an industry insider instead of someone who is trying to pitch something
  • Play the role of the doctor in the industry, build up your knowledge of how these firms work and then reach out to them in a method that positions you as the authority. One way to do this is by asking more questions than anything else, by asking dozens of questions you will get to know their business very well and this will lead to true expertise within this niche as well as respect. 

These tips should help you avoid some common mistakes and raise more capital faster than your competitors within this niche area of the investment industry.


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