How you think about the compensation of your family office investment team will affect how successful you are

What if there was a way to improve your corporate strategic planning process?

FCS spoke this week to a group of global family businesses about corporate strategy. The first myth we had to bust is that strategy is not your mission statement

Knowing when to sell and how to manage a portfolio of companies are the final two hurdles family offices face in doing direct private equity deals.

So, What Would You Pay?

There is an exceptionally high cost to mediocrity. Giving up the liquidity and diversification of the public markets for a direct deal is not something that should be contemplated lightly, especially considering the opportunity costs of not having access to capital in turbulent times. Family Offices must have their eyes wide open about how valuation affects the deals they choose to do.

“Water, water, everywhere, but nary a drop to drink”

Family offices doing direct deals face the sizable challenge of managing a deal sourcing pipeline of several hundred opportunities per year.

There are 6,000+ private equity funds, several hundred independent sponsors, several hundred search funds, sovereign wealth funds, strategic players and additional family offices all actively looking for acquisitions. Any new family office must be cautious to not be the “patsy at the poker table.”