Family offices manage the wealth of high networth households and can take many organizational and operational forms. However, the common thread among them is that they look after the day-to-day administrative and management affairs of the collective assets of one or more families.
They can be either single family offices (SFO) that manage wealth of people having a common ancestry or sharing the same surname; or multi family offices (MFO) where wealth from different families are pooled together.
Family offices are set up for intergenerational or inter-family wealth transfer, and their basic objective is to increase family wealth over time. They have traditionally been managing wealth using the services of investment managers, who in turn invest in all types of assets – gold, equities, alternative assets, etc. However, lately they have started hiring experts and directly investing in riskier avenues like new business and startups also. They typically provide seed and growth capital to startups and are also sometimes involved in providing guidance and management to the companies.
- Family offices have not been traditionally investing in startups, and do not have much experience in this field
- Lack of expertise and talented pool of resources to analyze and invest in startups
- Deploying capital in a small number of projects can lead to concentration risk, taking away the advantages of diversification
- Proprietary in-house database of promising startup firms to help identify investment opportunities
- Access to high quality research and analysis of the business models of startups to analyze the risk and returns of such investment
- Services to bring a number of family offices and angel investors together, to reduce the risks involved and achieve diversification
- Advisory services for integrated risk management and corporate governance to minimize downside potentials and possible frauds
- Shortlisting and identifying startups with promising and viable business ideas
- Unbiased and independent advisory ensures complete transparency, thus reducing chances of conflicts in deal making
- Diversification benefits as a result of pooling of capital across multiple investors
- Partners and associates at V4G utilize their proven expertise and help you find the optimum investment opportunities for your family's capital
Sign up as a Family Office and learn more about projects that are best suited for your investment profile.