UAE family offices recommendations by Obediah Ayton? Dubai Expo as one of the worlds premier global events is the opportunity for Monaco to will attract a lot of attention across all sectors, emerge the community in global initiatives to support a digital world and directly get involved in the new era of technologies for smart cities, feed and agri-each, accreted learning, blockchain supporting food security and provenance. An opportunity to mix with a high concentration of business leaders, government officials, heads of state and major investment groups. It is an exciting prospect, for Monaco to commit to hosting such a giant pavilion means that the country is truly dedicated to developing new relationships, new trade and investment opportunities with at the GCC region. The July gathering of Unite Monaco organised by The Private Investment Group hosted 150 business leaders, family offices, government figures at the Monaco Yacht Club who enjoyed an exclusive dinner meeting key guests from the GCC region. A very successful event has become a must attend event in the Monaco business calendar and links with the suite event in Dubai on the 30th September on the eve of the Expo 2020.
So as a startup, how do you find these alternative sources of funding that offer such collateral benefits? The first and best thing you can do is look to your board and the connective network you already have. The ability to access GCC family office networks is something to consider when building your board and team of advisors. If your existing network has been exhausted, there are events and other opportunities that can bring you closer together with angel investors and family offices. This significantly lessens the influence to artificially maintain high watermarks to receive incentive allocations. Family office decisions are based squarely on investment fundamentals, where long-term value creation replaces the 2/20 mentality. As a result, investments are more than fungible capital. It’s a commitment to align with the entrepreneur on a much deeper level. The deep, global networks of the ultra-wealthy families are used to create opportunities for the startups — from providing strategic advice, intelligence and subject matter expertise, to tangible benefits like identifying contract manufacturers to assist with the development of hardware products.
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 said “I am excited to watch Venturerock showing 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.”
Obediah Ayton or the growth of a financial influencer? Obediah Ayton is a trust manager at Ayton Family Office Trust and a consultant at Tennor Holding B.V., an expert 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! Begin Locally: If you are looking to connect with just a few family offices, the best place to begin is in your own backyard. The best method is to begin locally. These family offices are usually the easiest to initially meet and spice up a common interest. You can focus on getting to know every single family office in your city. With this base network, you are able to use it as a foundation for further outreach and referrals. But what happens if you do not know any family offices in your city or region? After all, they are submerged whales. Google is one of the best places to begin the search. If you don’t know any [family offices], start by searching Google. You will probably discover at least 2 or 3 in your area. Google search simply include your area (i.e. London) and the phrase “family offices.” Alternatively, you could search for the ultra-affluent residents of your area, and search for an associated family office.
Obediah Ayton on the new definition of a billionaire is not the net worth but in achieving change in a billion lives: At present, just over 50% of the relevant family offices allocate less than 10% of their portfolios to sustainable investment. However, a third of Families average portfolios will be comprised of sustainable investments and one-quarter impact investments within the next five years. Impact causes garnering the most considerable investments include those that address climate change, improve health and social care, as well as those that retain and develop employees, workplace safety and cybersecurity.
