Family Offices Investing In Direct Deals

Traditionally investing as Limited Partners in VC funds, Family Offices are interested in doing doing more direct investments

A new report by Dentons has found that 63% of family offices for the ultra-wealthy use direct investments, with an additional 22% interested in doing so, as they eschew traditional private equity funds. Direct investing has gained popularity as a way to reduce fees from traditional private equity funds. These investment firms are especially interested in opportunities in health care and disruptive technologies such as artificial intelligence. The average allocation for family offices with direct investments is 37% of private equity assets under management, with an average investment of $19 million. However, family offices also face challenges, such as difficulty obtaining high-quality deal flow and requiring in-house or external expertise to evaluate highly specialized areas.

Family Offices can use new technology and service firms such as StartupFuel to invest directly into deals. StartupFuel’s Scouting, Due Diligence, and Venture Expert softwares fill the gap of:

• getting access to high quality deals
• getting sophisticated objective due diligence reports
• getting access to our network of Venture Experts to provide advice and recommendations from subject matter experts

Contact diligence@startupfuel.com to learn more about our offerings for Family Offices.

Author:

Ashley Martis

CEO | Managing Venture Partner

StartupFuel Inc. (www.startupfuel.com)