Thoughts on joining new family office?
Has anyone here joined a newer family office? I have the opportunity to be employee #3 for one. Family has a very successful legacy business and recently spun out the new family office, where they look to allocate ~$250M in the next few years.
Bump. Mind sharing what comp / carry looks like?
$125k base + $50k bonus at VP level. In a pretty low cost T3 city. Carry is still a WIP but would likely be a couple hundred bps based on what I’ve heard
Not sure if it’s just me but a couple hundred BP’s of carry for a family office seems very low. This isn’t a PE fund which is going to be levered up 5 times. You won’t get those returns, and you’re only working on $250m. Maybe we need more details about the scope of the family office but carry seems negligible.
How does that compare to what you make as a manager in Corp dev?
Hey can you PM me? In a similar situation and would appreciate your advice.
Sounds like a good opportunity. What are your other options tho? Is it a better position than where you are now?
This really boils down to the people involved.
I wrote a long comment to someone asking about joining a smaller family office in a smaller city. I'll quote the relevant section here; I believe the framework is appropriate.
Really diligence how they make decisions, whether you'll be involved in those decisions, if your involvement is observatory versus participatory (big difference, although mere visibility at a minimum is helpful), their plans for team expansion, your involvement in the design and execution of headcount growth, and lastly, whether the economics are differentiated enough that you should view this as a lifer post rather than a mercenary stint.
You're in a different situation than that poster. You're a mid-level employee aiming upward, so I would be explicit about compensation and how your incentives are aligned for mutual long-term success.
The last time I was on this site I wrote a comment answering someone's question on carry at family offices.
When I was looking for it just now, I also found one from 2020 that says much of the same stuff.
All in all, congrats on the opportunity. Ones like this are exciting, but the flip side is the meaningful lift required to diligence it appropriately.
Good luck.
Hello APAE, I just want to appreciate how useful your information is. I'm talking to a family office from NYC tomorrow and this helps a lot with learning what I should ask. Thanks.
Planning on following an MD I am close with to a family office or fund he is going to start in 5 or so years. Then again, I know him pretty well, and look up to him, so it was a no-question for me.
Kinda similar situation. This is a former boss of mine that started it last year
Is this Europe or US?
US
Can I dm you? In a very similar situation
Without going into depth; this is mostly dependent on the decision making process and the willingness for the family to put money to work. I was in a similar situation and it was awful. Family communicated that the investment team would have full discretion. We had discretion right up until the IOI stage and then they were involved every step of the way...except that you move at their pace through diligence now that they are involved...and they aren't working live deal hours nor do they feel like they need to participate in live deal processes. From what I have observed, I think it is very difficult for a family office to have direct investment success when the family wealth was generated through operating business success instead of prior capital markets success (Real estate, former IB head, big-time PE, etc.) Left when I realized that I'd be fortunate to get one deal completed every five years. I should have left earlier than when I did.
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