Getting new Clients and building Credibility
Since a Family Office is public, it can raise its profile and attract new clients who may be interested in its services. An example of this is Rockefeller Capital Management, which was founded by the Rockefeller family. Their investments include a wide range of industries, including real estate, energy, and healthcare. In partnership with Rockefeller Capital Management is Jeter Reich Wealth Partners, who have also expanded on the services they are providing to other Family Offices. Going public with their investment criteria, portfolio, and contact information allows the Family Offices to gain new partnerships and gives capital raisers access to a niche, untapped pool of capital.
A public presence can enhance a Family Office’s credibility and reputation within the financial industry and among potential clients.
The Power of Networking
Another benefit of Family Offices going public is the ability to network with and learn from other offices, swap ideas, and make introductions. Investors benefit from flexible capital, and Family Offices have the opportunity to make new connections. Many Family Offices are looking to align themselves with other Family Offices, either to pitch their own investment opportunities, offer their services, team up for co-investing, or simply rely on a particular family for the expertise needed for due diligence in less familiar sectors. Family Offices collaborate to share best practices, co-invest, and advocate for common issues or interests.
By connecting with the right kind of service providers who work closely with both fund managers and start-up founders, Family Offices can find investments well-suited to them and their values. Opting for high-touch services that work with the Family Office to optimise their profiles for better alignment and accuracy increases the success rate.
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Social Media Presence
Technology and social media are accelerating the need for a public presence. Having a website is considered standard practice for most businesses, as it provides an essential channel for communication, information sharing, and networking with potential clients, investors, and other stakeholders. Family Offices today have sophisticated websites with detailed information about their investment strategies, team members, and additional relevant information.
Direct Investing on the Rise
Historically, Family Offices typically invested in traditional asset classes such as stocks, bonds, and real estate through external fund managers or financial institutions. Now, direct investing trends have been driven by the increasing sophistication and transparency of Family Offices. They want to more control the investment decisions, make the returns higher, and leverage the family’s expertise and network in specific industries or sectors.
Access to Deals and Space for Fundings
A public-facing Family Office may be approached with investment opportunities that may not be available to private Family Offices.
With Family Offices seeking a variety of companies and funds (both public and private) with which to diversify investment portfolios, it only makes sense that these groups would begin to make themselves more public. It is advantageous to become forward-facing. As Family Offices continue to increase transparency, it has become evident that these groups are highly interested in alternatives—an advantage for hedge fund managers, venture capitalists, and the like.
Philanthropy
A public presence can provide more opportunities for charitable efforts and community involvement. Family Offices often come together to collaborate on philanthropic initiatives. They make a bigger impact when working together and often have similar investment goals, values, and interests. By pooling their resources and expertise, they can achieve greater scale, diversification, and impact.
In previous years, Family Offices would be shrouded in secrecy, keeping a close eye on their wealth and activities. Nowadays, it is not uncommon to see a large Single Family Office, such as Hong Kong business magnate Li Ka-Shing’s Horizons Ventures, come forward with details of their past investment history.
