Fund-of-Funds and family offices tips by Obediah Ayton

Alternative funds, technology solutions and fast-growth start-ups guides with Obediah Ayton? The first thing to understand is that it’s not a growth equity fund — the primary goal of a family office is to invest wealth prudently and extend it beyond generations. Families in the GCC have a multi-disciplinary approach that ensures their wealth transfers across multiple generations in the most tax efficient manner possible, that their children and future generations have prudent investment programs implemented and that they have the appropriate infrastructure and fiduciaries installed to responsibly manage and maintain wealth. This gives local family offices tremendous flexibility in the types of companies and industries that they choose for investment. These offices are typically not beholden to a set of mandates forcing investment into a predetermined space and criteria.

Supporting VentureRock with their capital raise and strategic partnerships with both the public and private sectors has been The Private Investment Group, a Dubai-based company that works with funds and families in the GCC but also throughout Europe, the US, and Asia. Founder and CEO of The Private Investment Group Alastair Lidel said “What VentureRock has built is the next generation of ecosystems. A system that allows the incredible depth of knowledge they have to be coupled with some of the most innovative minds in the world. Working in partnership with Xander and the VentureRock team has always been exciting and a privilege and we are delighted to have supported them in this venture and look forward to continuing this impressive journey. Director of Business Development at The Private Investment Group Obediah Ayton added “I am excited to see Venturerock demonstrate the way venture capital funds are now being deployed post covid here in the UAE. The portfolio companies within Venturerock are some of the most professional and innovative we have seen and I have no doubt they will be a welcome asset to both the public and private sector in the Middle East.”

Get to know Obediah Ayton and some of his achievements? Obediah Ayton is a trust manager at Ayton Family Office Trust and a consultant at Tennor Holding B.V., a specialist in family office business, AI driven accounting services, finance and accounting. Obediah Ayton about what happens when a Family Office takes the VC model: Strategies for the Search: Friends and Fellow Founders: Friends or founders in similar sectors who have previously raised from family offices are a great starter resource. This route also passes a few qualification checks around interest, size of deal, and sector preferences. Remember, there is no investment barrier or fund allocation requirement for family offices. Professional Intermediaries: Investment bankers and wealth managers who service family offices are oftentimes happy to make introductions in order to add value to their clients. Since these clients are the intermediaries crown jewels, their recommendations will first require diligence.

Many of these Family offices may prove to have much higher and longer-term vested interest in the businesses they invest in compared to an institutional investor. In many cases, based on the experience of the principals behind the family office, they will seek to take a more hands-on involvement in the businesses they fund, acting as mentors and not merely benefactors.

Obediah Ayton on how to raise money from family offices: Investment proposal: – When you have a specific project or investment opportunity, it is essential to prepare a list of suitable family offices before you contact them. Study the emotional interest within the Families history with specific areas or businesses. When creating the list, quality always beats quantity. Quality means: you should look for family investment offices which have previously invested in similar projects or are generally known for their open-minded investment style. Simply sending a generic mass mail to hundreds of family offices is rarely successful. While compiling the list already make notes about the SFOs and their investments – this will help you out later.

Right now is a great time to build close relationships with Family Offices for future capital raises! Moreover, diverse outreach also entails tailoring your conversations to the specifics of different family offices. Although there are general categories of offices — small single family offices, large single family offices, small multi family offices, and large multi family offices — Each firm is unique. “There is no singular template. Each family office has its own system — different sized teams, different missions, and different values.”Immediate results are not guaranteed, even with quality and diversified outreach. Quality conversations will take time to develop. Try to talk with family offices every day online and schedule face-to-face virtual meetings, and it still takes a long time to generate solid relationships, raise capital, or organize club deals.

Obediah Ayton on the new definition of a billionaire is not the net worth but in achieving change in a billion lives: Everything can be done remotely today. We only go to the office one or two days a week. The world is becoming more virtual and I think that is a trend that a lot of people still do not understand. ‘Founding partner at a single family office’ Tech-savvy family offices who embrace these trends can harness technologies to not only expand their businesses across the globe but also to leverage global talent pools in various areas of operation where local expertise is lacking. This requires a degree of agility which needs to be prioritized within family offices seeking to advance their reach and grow their wealth.