Real Estate Fundraising (HNW / Family Office)
I am an emerging fund manager raising a first time real estate fund in a coastal market. I am targeting an investor base of HNWs and family offices. I was hoping for any tips / tricks / contacts / family office lists the community had to assist in this endeavor. I am doing all of this work myself as well, but any assistance / guidance would be appreciated in the effort to avoid going the route of an institutional investor that would take a GP stake.
In terms of background - I worked for 10 years at one of the top investing groups on the street and was a business head there. You would recognize it. Can give more details via DMs, but would prefer to maintain anonymity publicly. And yes I realize WSO is a tool primarily for recruiting at university, but it is also a powerful network
It's pretty difficult to raise capital right now. You will likely need to engage a capital raiser if you personally don't have a deep network to tap into. I recommend really crafting your thesis and simplifying responses to investors' questions. That combined with a strong pitch deck and track record should give you a shot.
appreciate the advice and agree with all the above. we were hoping to supplement our existing outreach to our own networks with a family office list, with the expectation that eventually we will likely need to go the route of an equity placement engagement
You can check out familyofficelist.org Familyoffices.com
We had great conversations with investors from both of these websites. But nothing came to fruition.
Fundraising without a prior connection in today's environment is not for the faint of heart. I wish you the best of luck!
Thanks for the note. It seems like the primary providers are the two you mentioned (familyofficelist.org and familyoffices.com, which is Richard Wilson's website) and Axial (axial.net). I was a bit hesitant to use familyoffices.com because of how aggressive their sales tactics are (always hesitant to pay for a product that is sold not bought). What was your experience with both?
Familyofficelist.org seems credible, but i am still in the process of trying to determine which (if any) are worth the cost
A few suggestions:
1. It may be worth it to pony up for some of the conferences (or at least do the lobby meet and greets) to meet people.
2. Service providers - lawyers, accountants, architects, etc. all deal with HNW individuals on a regular basis and if they like you can make introductions.
3. 1031 Exchanges - this is a bit brokerish and more if you're desperate, but look through the list of 1031 exchanges for deals that have happened each month and reach out to the seller to see if they'd be interested in 1031 exchanging into a deal that you're offering them.
Best, of luck!
Currently have my own practice that specialises in capital raises for REPE funds, would be happy to chat over DM see if there's anything I can assist with.
Have you ever raised capital for a RE debt fund? If so what's the appetite like in this market?
Appreciate all of the advice thus far. Think we will have to engage a capital raiser given the broader environment, but wanted to continue with organic outreach as well. Any and all thoughts are welcome (on fundraising broadly or on the family office lists). Appreciate everybody's help
bumping this to see if anybody has experience with any of the family office list providers
I've heard good things about preqin but I think it's pretty expensive
Traditionally Family Offices are some of the most difficult groups to break into if you do not know anyone at the office or in their sphere of influence. HNWIs are generally easier to get in touch with are often times the "dumb money" in the room, but only some are smart enough to know that they should trust outside professionals. If I was you I would scour your network to get in touch with the doctors, lawyers, etc that have excess cashflow that they need to invest but do not have the time to do so. Start there and work your way up. Once you start doing successful deals capital will find you.
Feel free to DM me with more details about yourself and your raise - I recently joined a family office on the East Coast. Can't promise anything obviously but gotta start somewhere.
What state?
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