Hey all -- exploring an opportunity to help build out the direct investing (PE) strategy for a multi-family office. The principals are 3 individuals who cofounded / successfully exited their business together. They have pooled a lot of their proceeds from that event and have mostly pursued fund strategies, etc. jointly to date, but I would be among the first dedicated resources on the direct side.
There's a lot of helpful info on these boards about single family offices, but was curious if anybody had worked for a FO that had multiple stakeholders, since I imagine there's some differences in dynamics. The roles is fairly senior so I would be working pretty closely with all 3 individuals.
Based on the most helpful WSO content, working for a multi-family office (MFO) can indeed present different dynamics compared to a single-family office (SFO). Here are some key points to consider:
Decision-Making Process: In an MFO, you may have to navigate a more complex decision-making process due to the presence of multiple principals. Each individual may have their own investment philosophy, risk tolerance, and goals, which can lead to a need for consensus-building and compromise.
Investment Strategy: As you'll be helping to build out the direct investing strategy, it's important to understand the collective investment objectives of the principals. MFOs may have a broader range of investment interests, and aligning these with the direct investment opportunities will be crucial.
Relationship Management: Building and maintaining strong relationships with each of the principals will be key. Given the role's seniority, you'll likely be involved in high-level discussions and negotiations, requiring strong interpersonal skills.
Governance Structures: MFOs may have more formal governance structures in place compared to SFOs. Understanding the governance framework and how it impacts investment decisions will be important.
Resource Allocation: As one of the first dedicated resources on the direct side, you may have to be strategic about resource allocation and prioritization of investment opportunities.
Alignment of Interests: Ensuring that the interests of all stakeholders are aligned, especially when it comes to exit strategies and time horizons, will be a critical part of your role.
Cultural Fit: Each family office has its own culture, and in an MFO, the culture may be influenced by the dynamics between the different families involved. It's important to assess whether you're a good fit for this unique working environment.
Remember, while there are general trends and observations, each MFO is unique, and the actual experience can vary greatly depending on the specific families and individuals involved. It's always a good idea to conduct thorough due diligence and have in-depth discussions with the principals to understand their expectations and the office's operational dynamics.
Sources: https://www.wallstreetoasis.com/forum/private-equity/family-office-versus-traditional-pe-shop?customgpt=1, Family Office vs. Traditional LP Career Path, Family Office Private Equity, Would you work for a family office?, Are we in a new Family Office bubble?
What is the aum?
It's a $250-500M commit to this strategy. Don't have a sense for overall entity
Legit
Bumping if anybody else has something to add
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