Family office vs. venture capital fund benefits with Obediah Ayton? Following the Unite Monaco event organized by the Private Investment Group, earlier this month, which gathered high-level public sector figures and private families from the UAE and Monaco, Wealth Monaco caught up with Obediah Ayton, Chief Operating Officer of the Private Investment Group. What is the Private Investment Group mission and process? We have acted for the last three years as an international gateway into the GCC region which is very much open for business and has consistently been the biggest allocators of capital despite the global pandemic. We have established built relationships with the public and private sector within the GCC with a focus on supporting International business, businesses that seek access to the region through a joint ventures and partnership for the distribution and licensing of products and services but also attracting investment both indirect and directly.
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.
“In the past 12 months, we’ve successfully launched 10 companies within SPIC I, which is focused on changing the way we finance, invest and exchange value. This portfolio has been designed for revolutionary impact – to build a global financial infrastructure that embeds trust and payments at a protocol level. An infrastructure that provides the building blocks for the next economy by powering products, services and business models with financial services at the core”, further explains van der Heijden. In the long-term, the impact-focused venture builder is on a mission to create a Single Digital Capital Market and launch a secondary marketplace running on a global shared liquidity infrastructure, stimulating cross-border investments and lowering the threshold for retail investors. Director of Business Development at The Private Investment Group Obediah Ayton added “I am excited to watch 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 growth 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 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.
Moreover, the principals behind the family offices have extraordinary networks of connections, which can prove invaluable for start-ups seeking customer exposure, business know-how or even further investment. Since family offices in the Middle East are independent entities and are regulated less strictly than banks, they can be much more flexible in their consideration of investments across enterprise size, geographies and asset classes. The appeal of direct investment to family offices comes from more than just the alignment of capital. Direct investments allow them to take a more hands-on approach to selecting and managing their portfolios. Investments in the sustainability space and impact investing are particularly attractive.
Obediah Ayton about 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! Have a Value Add: The hardest part of the relationship is maintaining it. After the relationship is started, the hard work arrives. You must demonstrate that you will provide clear value to the family office. The same principle must apply to your outreach and relationships. Demonstrate to the family office why your firm is the right one to be in contact with. What can you offer that no one else can — Is it a strong track record? Exceptional due diligence skills? Experience and insight within a relevant industry? Whatever the skill, emphasizing the trait is a critical component of securing the connection.
Obediah Ayton about the new definition of a billionaire is not the net worth but in achieving change in a billion lives: Global Family Office Trends. This year, Families continue to focus on impact and sustainable investment, while also embracing globalization and a rise in the remote workforce. Impact and sustainable investment. Rising levels of socioeconomic inequality and concern regarding climate change are issues garnering global debate and interest. 65% of family offices will play an integral role in economic inequality alleviation.
