UAE family offices tricks with Obediah Ayton? The Middle East Families investment process includes much more than writing a check. It’s about finding the right types of investments and management teams that are going to deliver long-term mission-driven value. Sure, everyone wants to find and fund the next unicorn, but because of the family commitments, offices of this nature are not going to do this through an indiscriminate “spray & pray” approach. Family offices are more focused on finding the right opportunity and do not have a clock ticking in terms of putting funds to work like a venture fund may have. These dynamics change the investor/startup relationship, because it’s not just about a quick exit. The family office isn’t running a fund with multiple investors to answer to, so they can afford to sit on the investment and help it grow. The same external pressures exerted by institutional investors to wind down investments or get out at inopportune times don’t exist.
VentureRock – Impact Venture Builder and ecosystem of entrepreneurs, investors and startup experts, is launching a $300M Fund-of-Funds in Abu Dhabi to support and grow the market-leaders that will shape the world of tomorrow. Dubai, United Arab Emirates Apr 22, 2021 (Issuewire.com) – From this new Fund-of-Funds, VentureRock will invest in early-stage startups that leverage technology, science, and innovation to build sustainable, impact-driven solutions and unlock new-age business models for Retail, Real-Estate, Logistics, FinTech, and Agriculture. This will be done through Venturerock’s Special Purpose Investment Company (SPIC) structure, which implements the legal and operational processes needed to safeguard the ventures’ success. Director of Business Development at The Private Investment Group Obediah Ayton said “I am very happy 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.”
The climb of a financial influencer : Obediah Ayton? 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 on what happens when a Family Office takes the VC model: In addition, Family Offices want to avoid paying the typical “2 and 20” — a deal structure that requires investors to pay a 2 percent annual fee (some as high as 3 percent) to the VC firm on top of the 20 percent return on investment. This is why we’re seeing more of the mega-wealthy move away from only investing in private equity funds to increasingly working with their family offices to find the right types of direct investments that fit their long-term wealth-generation strategies.
For years, family offices of wealthy dynasties have invested in bonds and shares. However, the next generation of family offices in looking to invest in alternative funds, technology solutions and fast-growth start-ups. Traditionally, family office investment strategies have focused on public bond, equity markets and alternative investments, such as hedge funds and real estate. However, these investments are no longer providing the returns they used to, and we see heightened enthusiasm for direct investment in businesses in order to increase return. There is a real opportunity here to develop mutually beneficial relationships between family offices, new funds and SMEs.
Obediah Ayton on how to raise money from family offices: Not to do: Don’t pitch them without understanding their goals and objectives. Don’t brag about your track record or accomplishments. Don’t interrupt them in the middle of a conversation. Don’t be aggressive. To Finish: Do exactly what you say you are going to do. Meet for coffee or at their office in order for you to understand their goals and objectives better. Respect their privacy and don’t share any information about them with anybody else. Feel free to reach out and speak soon.
Right now is a great time to build close relationships with Family Offices for future capital raises! To capitalize on this favorable change in the tide, it would be worthwhile to (re)start your outreach to this notoriously hidden family wealth. Just because the offices are hidden does not mean they are unreachable. The relationships with single and multi family offices can be cultivated through diligent, persistent, and intelligent outreach. Below are a few methods to begin your family office outreach: Have a Proactive and Diversified Outreach: The most effective outreach strategy requires both persistent and proactive outreach. Even for the specialized Family Offices Group, building relationships still requires a variety of different channels and techniques. Currently, you can use a variety of tactics — probably around 30 different strategies — to attract family offices. Speak at conferences, writing articles, publish newsletters, maintain a website, run an association, offer a training platform — and that is just the tip of the iceberg.
Obediah Ayton about 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.