Family offices look for a deal that fits their investment goals and has a clear case for its potential return. They examine the offering and its risks, test the assumptions, and assess the people behind it. The process varies by office and asset type, so investors should be ready to answer detailed questions.
Start with fit and a clear investment case
There is no single checklist that applies to every family office. An office may focus on a particular asset class, geography, or investment strategy. A deal needs to make sense within that focus, with a clear explanation of what is being acquired or built, how it is expected to perform, and what could go wrong.
For a real estate example from an event excerpt, one investor described looking for landlord-friendly cities, strong locations, and substantial upside. The investor said that if any one of those conditions was missing, the group would not buy. That is a specific investor's stated approach, not a rule for all family offices.
Expect detailed review of the deal and its risks
Investors may review the pitch deck, offering documents, assumptions, and supporting materials to identify gaps and risks. They can ask questions about the business model, financials, management, market, and the terms of the investment. The exact review depends on the opportunity and the investor.
A transcript excerpt describes a group of investors who read every word of a private placement memorandum and hold group due diligence meetings. That example shows how intensive a review can be. Being prepared means having documents organized, explaining assumptions clearly, and addressing concerns directly.
The people matter, too
A deal is also a judgment about the people responsible for executing it. Investors may want to understand the team's experience, decision-making, and how they respond under pressure. One excerpt says that due diligence includes looking at the people and that human judgment remains important even when AI tools are used.
For founders and sponsors, preparation can include anticipating questions, identifying weaknesses in the presentation, and being ready to discuss risks as well as the potential upside. A polished deck is useful, but investors still need enough information to assess the opportunity and the people behind it.
From Family Office Club events
"We do a deep due diligence on the people. I struggle with that because I don't think AI is going to replace that."
Sources
- Family Office Club event transcript
- Family Office Club event transcript
- Family Office Club event transcript
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