Family office investment, from either single or multi-family offices, is often hailed as the holy grail of private equity. The reason? It’s generally regarded as “evergreen” capital, patient with an indefinite fund life, and long term or no investment horizons to speak of.
Venture capital dollars aren’t as readily available as they once were and when they are, the terms associated with them are often hard to swallow. It’s little wonder that family office investments capture the minds of most entrepreneurs at some point in their fundraising journeys.
While family office investment is an attractive captive funding source, is it always the optimal choice? This is something both family offices and those seeking investments need to consider. To answer this question, one needs to evaluate the differences between the investment mandates of affluent families and traditional venture capital, as well as the lesser-known facts about the nature and subtle nuances of family offices that are often overlooked.
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