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FAMILY OFFICE MONTHLY


August 2017

Upcoming
Family Office
Conferences
in 2017
Family Office Energy
Investor Summit

W elcome to the August edition of Family Office Monthly. We hope you were able to join
us for CapitalCon 2017 in NYC, which proved to be yet another fun and insightful September 15th 2017
capital raising conference featuring some of the most successful fund marketers in the world.
The rest of the year's conferences will be focused on family office wealth management, deal Houston, TX
flow, and investments. If you plan on attending our upcoming conferences and we encourage
you to RSVP as a Charter Member in the new login platform at www.FamilyOffices.com www.FamilyOffices.com/Energy
We hope that you'll also join us for The Family Office Energy Summit in Houston on
September 15th. For our full list of this year's events, be sure to visit www.FamilyOffices.com. Deal Flow East
Beyond the conferences, we hope that you take advantage of our extensive family office
resources such as Family Office Monthly, database solutions, family office training programs, October 17th 2017
webinars, and more. If y ou would like to learn more about how we can work with you, your
business, or your family office, please contact our client services team at New York, NY
Clients@FamilyOffices.com and by phone (305) 503-9077.
www.FamilyOffices.com/Deals
Guest Article: Paint & Carpet - The The Most Interesting Job in
Value Add Imposter Finance?
Family Office
One of the most frustrating parts of being a If you talk to many family office
value-add investor is how subjective the term professionals (and we do), they don't
Super Summit
value add has become. Eight years ago, I always strike you as the Dos Equis
walked into a bank with the goal of
negotiating to purchase...Page 2
pitchman, "the most interesting man in
the world." But many of these... Page 5 December 5-6th 2017
Podcast Episode: Why You Need a Family Office Exec Foresees
Miami, FL
Family Office Volatility Ahead www.FamilyOffices.com/Super
In the latest episode of The Family Office
Podcast, Richard C. Wilson discusses why you Stephen Diggle, the chief executive
should consider a family office and explores officer of Singapore-based family office Reserve your seat today:
the various advantages that families have Vulpes Investment Management, expects
www.FamilyOffices.com/Reserve
found in setting up their own family office... to see a big surge in market volatility. As
Page 4 he puts it, it's almost... Page 9
E-Mail: Clients@FamilyOffice.com (305) 503-9077

Middle East Family Office Injects $100m into IronFx


When private companies and investment
funds look to raise capital from family
offices, they are typically seeking a
commitment of $1-10 million and rarely
more than $10 million from a single
family. Of course, there are many uber-
wealthy families that could commit $30
million or $100 million but few families
have that level of liquidity and fewer
would want to put so much money into a
single investment. That's what makes the
$100 million investment by one family
office into IronFX so impressive.
The Cyprus-based foreign exchange firm will use the funds for operational expansion.
In a statement, the CEO of IronFX said, "Our ability to attract sizable investment and the quality and
reputation of out new international partners demonstrates the significant strides made by the Company over
the past years, as well as its current position and future outlook. It also signifies an important foreign direct
investment and a vote of confidence in the Cyprus financial sector."
The company states that it will be boosting its own technological and operational resources, while opening the door for M&A
growth opportunities. IronFX is said to be already looking into buying client books and adding new brands to its portfolio.
IronFX is already running subsidiaries across four regulatory jurisdictions. The companys main business subsidiary is the FCA-
regulated entity 8SAFE. Another portion of its business is also being operated by ASIC-regulated GVS (AU) Pty Limited,
which is behind the FXGiants brand name.

Source: https://www.financemagnates.com/forex/brokers/ironfx-announces-100m-investment-middle-eastern-family-office/

September Webinar: Family Office Deal Flow Secrets


On Sep 14th the Family Office Club will be hosting You can attend all of our webinars for free as a
a live webinar on Family Office Deal Flow Secrets. Charter Member or register to attend here:
http://FamilyOffices.com/Webinars
In this webinar, Richard C. Wilson, founder of the Members can also access dozens of hours of
Family Office Club, will discuss what the family content through our webinar recording library.
offices that he represents do to secure high-quality,
off-market deal flow. Of course, he won't be Were covering all the important family office issues
sharing anything confidential to the families in Charter Member webinars, our quarterly
involved, but he will be showing the techniques and conferences, and through educational resources like
strategies that have been used to great success by Family Office Monthly so be sure to receive the latest
some of the top family office investors in the world. by joining the Family Office Club: http://
FamilyOffices.com/Association

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Balancing Hustle with Strategy New Capital


and Patience Raising Book
One thing I've noticed is that for most investment management professionals there Are you looking to raise
is no shortage of passion or hustle, most seem genuinely excited to be building their capital? Richard C. Wilson,
founder of the Family Office
investment fund, developing real estate, or managing their family office. Balancing Club, just released his latest
that with making sure you have all 50 of your ducks in a row, are riding a strong publication The Capital
current, sticking to your niche and in your lane, and playing the best game with the Raising Book: The 5-Step
cards you have that leverages your personal and team's DNA is the real balancing System for Raising Capital from
act. Private Investors.

There is always a tension between the need to quickly implement, adopt and iterate,
and at the same time be patient. The most successful centimillionaires I work with
(the individuals who have raised billions of dollars) who run the fastest growing
private companies seem to all have that approach of focus, strategy, ducks in a row,
and ability to implement changes quickly. At the same time, these centimillionaires
have the patience for the results to come once they've chosen their position and not
care too much if that is short or mid-term since the end goal is worth so much to To download the first four
chapters of this book visit
achieve. http://CApitalRaising.com/
book and complete the simple
In contrast, many of the ones who never raise the capital, grow their family office download form to receive the
portfolio, or build their business past 7 figures seem fail to occupy valuable enough book.
turf, don't play a long enough business game, don't add value first, don't get their
Looking to meet family offices
operations or execution right (ducks in a row), or they are very impatient so if they
in person? The Family Office
don't get an ROI in the first few months they are out. Club hosts many live
conferences throughout the year
I think that the balance of knowing a niche is worth really owning (in part at least) in great locations like Manhattan,
regardless of how long it takes to do so is what ironically speeds up your efforts, Singapore, and Miami. Once a
credibility, and progress on doing so. Nobody wants to work with someone who is quarter, we host an exclusive
gathering for single family
in something for the short-term, and nobody will take you more seriously than you
offices and affluent families to
take yourself - that is why in the family office space you have to always be playing a meet, share experiences, and
long game. build relationships.

I see this topic as something not discussed nearly enough at most investment
events including our own, thank you for following our work.

We have many opportunities to work with family offices and learn how they build
long-term relationships through our upcoming conferences, such as September's
Family Office Energy Summit. Hope to see you there.

If you would like to be


considered for membership (free
Richard C. Wilson to single family offices) please
contact us:
CEO & Founder
Qualified Family Office Professional (QFOP) E:Team@SingleFamilyOffices.com
Family Office Club P: (305) 333-1155
328 Crandon Blvd. #223
(305) 503-9077 Key Biscayne 33149
328 Crandon Blvd. Suite #223
Key Biscayne, Florida 33149
E-Mail: Clients@FamilyOffices.com (305) 503-9077

Video: Forget About Making


Money, Its More Profitable.
I've spent a lot of time working with successful families and investors that
have made a made a lot of money for themselves. One lesson I've learned
from these experiences is that it's more profitable to forget about making
money. I know that sounds counter-intuitive but, as I'll explain in this
video, in the family office space and when it comes to raising capital you're
better off pushing the monetization down the line. When you aren't overly
focused on making money right away, you'll send the signal that you are
serious about working together with your counter-parties long-term and not
trying to make a quick buck like a used car salesman. That's important if
you're looking to work with successful executives and family offices.
https://www.youtube.com/watch?v=dnCgNmBEDtY

I hope you enjoyed hearing about the strategy I discussed in this video. I'm
always looking to learn new techniques and lessons from those who have had
a lot of success in their careers.

Richard C. Wilson
CEO & Founder
Qualified Family Office Professional (QFOP)
Family Office Club
(305) 503-9077
328 Crandon Blvd. Suite #223
Key Biscayne, Florida 33149 United States
http://FamilyOffices.com

4 | Family Office Monthly


E-Mail: Clients@FamilyOffice.com (305) 503-9077

The Most Interesting Job in


Finance?
If you talk to many family office
professionals (and we do), they don't always
strike you as the Dos Equis pitchman, "the
most interesting man in the world." But
many of these executives are quite
impressive, highly intelligent, and most
really love their jobs. So, while, I think that
the latest article by eFinancialCareers about
working for a family office titled, "Inside the
most interesting job in finance," might be
laying it on a bit thick, I do agree it is a very underrated career in the financial industry.

Before I share some of the article, I wanted to hit on a few advantages to working at a family office.
First, you don't have the same level of stress that is typical of a hedge fund or investment banking
job. It's not an easy gig, but working at a family office is typically more relaxed and you generally
serve just a small cadre of clients (if not just one) and most executives decided to join the family
office because they liked the family or families that they serve.

Second, there isn't much selling involved. A big pressure and stress in finance is raising capital or
selling investments. Whether you're a broker selling stock or a CIO of a private equity fund, you're
always trying to find new investors. Family office executives usually have little pressure to raise
outside capital and that's a big stress off your back not having to do capital calls every quarter.

Finally, the last advantage I'll point out is that as a family office executive you can typically climb the
ladder quickly. At a big bureaucracy like a wire house or large private equity firm, you could spend
your whole career trying to reach the C-suite. At a family office, your work will be more easily
recognized and you might even see those efforts rewarded by the family or your immediate
superiors in a way that a larger firm would barely notice.

Its not M&A. Its not private equity. Nor is it hedge funds, nor systematic trading divisions in banks. If youre
looking for the most interesting, endlessly variable, exciting and glamorous job in finance, you probably want to work
for a family office.

So say those in the know. While family offices used to be turgid places busy with the preservation of ancient wealth or
strange places under the purlieu of Russian-style oligarchs, theyre now increasingly fun. With 10,000 single family
offices globally according to EY, there are still plenty managing old money, but there are also many managing the
money of young tech mega-millionaires. The most recent Cap Gemini World Wealth Report predicts that technology
firms (and finance) will be the biggest generators of high net worth individuals between now and 2025...

One former Goldman Sachs managing director who now works in the family office sector says it offers an unparalleled
breadth of opportunities: You can do public markets or private markets. You can hedge funds and real estate. You
can even do venture capital. Basically, anything.

Source: http://news.efinancialcareers.com/uk-en/292197/working-for-a-family-office

5 | Family Office Monthly


E-Mail: Clients@FamilyOffices.com (305) 503-9077

Paint & Carpet: The Value Add Imposter (Part 1 of 2)


The following article is by Paul Gabrail of Select Investment
Group, the investment arm of the Gabrail Family Office.

One of the most frustrating parts of being a value-add


investor is how subjective the term value add has
become. Eight years ago, I walked into a bank with the
goal of negotiating to purchase a package of foreclosed
apartment buildings in a Cleveland suburb. Apart from
typical banker arrogance, this particular banker went
above and beyond to exude his self-importance on a
deal that his bank had so poorly underwritten.
As I started to present my underwriting process, I mentioned my strategy of investing $15,000 per unit in
rehab. The banker immediately seemed shocked and said, Whoa! How did you get to $15,000?" We always
underwrite $8,000 per unit, at most, for a rehab! Their mistake was assuming that every property was the
same and needed the same amount of work. This bank had obviously not been to the property in a long time
because if they had, they would have seen that the entire stair system was atrocious. The cost of the stairs
alone was $3,000 per unit when amortized out. Determined, I proceeded by saying, Well, let me show you
my underwriting of the rehab. The banker just laughed and said, Yeah, teach me something I already
know.

Their hubris was one of the reasons that I was unable to buy the
deal. Using arcane methodology and relying on traditional rehab
models, this banker could not have understood the current state
of the property. He did not appreciate what it would take to
rehab the property, which was borderline condemned. He
looked at me, not as someone who would save the property
(which I could), but as an ignorant underwriter.

This is an all too common tale. We are constantly debating with


bankers and investors who say, Why are you investing so much?
This other group invests just $4,000 per unit!

Well yes, if all I was doing was putting lipstick on a pig, I, too,
would only invest $4,000 per unit into a property. What does
$4,000 get you? Some carpet? Some paint? Maybe some
cabinets countertops? That's about it, and it looks a lot like
lipstick to me.

Are these cosmetic updates important? 100%! These small


updates make a difference. But are they going to drastically change the dynamic and feel of your property?
What about the exterior? Youre going to put some lipstick on the inside but what about the outside? Don't
limit your thinking like the banker did.At Select Investment Group, we engage in what we call Premium Value
Add. This is a thorough rehabilitation of the interior and exterior of a property.

Article continued on the Page 8.

6 | Family Office Monthly


E-Mail: Clients@FamilyOffices.com (305) 503-9077

ACCESS THOUSANDS OF FAMILY OFFICE RELATIONSHIPS

The team at the Family Office Club has put together a powerful
combination of resources for professionals looking to raise capital from
institutional and family office investors. The Institutional Capital
Raising and Conference Package includes all of our investor databases,
as well as access to our quarterly family office networking summits,
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Whats all included in this package?

1 Multi-Family Office Database (1,000+ Firms)

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ceTraining.com/Masters) - $1,985 Bonus Value

Order today: http://FamilyOfficeDatabases.com/Family-Office-Database

SINGLE FAMILY OFFICE MANAGEMENT


At Single Family Office Management, we provide
hands-on assistance in launching, managing, and
improving your single family office.

If you are seeking help forming a single family


office or want expert support for your existing
family office, visit http://SingleFamilyOffice.
com or call (305) 333-1155 to speak with an
experienced single family office advisor.

7 | Family Office Monthly


(305) 503-9077

Paint & Carpet: The Value Add


Imposter (Part 2 of 2)
Some of the many items we replace and upgrade are:
Roofs Kitchen cabinets
HVAC Upgrade to wood or wood-like plank flooring throughout
Exterior Lighting Full tile in Kitchen and bathrooms
New Landscaping Backsplash marble tile in kitchen
Granite Countertops New high end bathroom vanities ($800+ vanities)
Plumbing fixtures New premium light fixtures throughout
Security Cameras throughout the
properties

Why do we do this? We WANT to be the highest priced property in every market. So many people in real
estate have a preference to be low-priced. Same with banks. They want to be the value priced property.
Well, do you want to pay for quality or not pay for quality? Renters want better, and they are willing to pay
for it. So we give them the better quality! Would you rather be 90% full with rents that are 20% above your
competitor, or would you rather be 98% full and have the same rents as your competitor? Its a no brainer!

The next time someone tells you they are value-add investors, ask them what level of value add they do. This
will reveal their true value add philosophy. Decide if their explanation of value add sounds like a clich
statement, as it has become.

We are proud of what we do as property rehabbers and turnaround specialists. We aim to ameliorate the
damage done by the so-called value-add investors who cut corners by simply putting lipstick on a pig and
try to classify themselves in the same category. It all works out in the long run, of course, because logical
thinkers recognize the difference between a $4,000 budget and a $15,000 budget, and they ultimately
recognize the gains.

Paul Gabrail is the CEO & Principal of Select Investment Group ("SIG"), the investment arm of the Gabrail Family Office.
His areas of expertise include real estate acquisition, rehabilitation, and property management. Paul oversees an investment
strategy of acquiring undervalued properties in sub-markets and rehabbing these properties, resulting in increased rents and asset
value appreciation. He founded the family office in 2005.Paul currently resides in Richfield, Ohio with his 3 dogs and enjoys
playing chess, tennis, and basketball. For more information visit: www.selectinvestmentgroup.com

8 | Family Office Monthly


E-Mail: Clients@FamilyOffice .com (305) 503-9077

Family Offices Present Capital Alternative for


Family-Owned Bujsinesses
Many business owners find that they do not have attractive options
when it comes to raising capital for expansion or completing a
turnaround strategy. Conventional wisdom in these situations would
lead most business owners to look to private equity but the fact that
private equity funds typically have a time horizon of only a few years
before they want to either sell or have a liquidity event otherwise, this
may be an unappealing prospect for a long-term-minded business
owner. Another reason that private equity might not be a good fit is
that private equity firms typically look to acquire control. For these reasons, a family office might be a more
suitable investor, as the article that follows suggests:

Family business owners are often faced with the dilemma of how to raise capital for growth without relinquishing control of their
company. They dont readily consider private equity because PE firms are known to demand a majority position in exchange for
their investment. That situation is changing as more family offices invest in PE funds. The phrase family office is shorthand
for financial advisers who manage ultra-wealthy peoples money.

Family offices are highly motivated to consider family business opportunities because those companies often meet PE investment
criteria, including:
- A tenured, proven CEO.
- An industry that preserves wealth, such as discrete manufacturing, distribution and logistics, and health care.
- A predictable revenue stream and a history of sustained financial performance.
- A growth plan that would benefit from specific capital investments and the value-added advice and services the PE firm can bring.
Before engaging with a PE firm, ask yourself why you want the investment and for how long. From the PE firms perspective,
there are good and bad reasons for seeking capital. Good reasons include shoring up the balance sheet, diversifying personal wealth
or looking for a vested partner that will help take your company to the next level. Bad reasons are anything related to financing
personal family expenses.

Its important to work with a PE firm that has the right hold period for your company. Its in the DNA of family office-backed
PE firms to take a longer view, and they will seriously consider a five to seven year horizon, far longer than the three years typical
PE firms will invest.

Read the full article: http://www.sbnonline.com/article/family-business-owners-can-raise-capital-without-losing-company/

PODCAST EPISODE: Why You Need a Family Office


At the Family Office Club, we are amazed at the potential growth in the family office
industry. So many centimillionaires and billionaires aren't familiar with the concept still. On
a recent episode of the Family Office Podcast, we answer the question, why do I need a family
office? http://FamilyOfficePodcast.com/why-you-need-a-family-office

Be sure to subscribe to the Family Office Podcast for more lessons on working with family offices:
http://FamilyOfficePodcast.com
E-Mail: Clients@FamilyOffice .com (305) 503-9077

Four Job Openings with $1 Billion+


Family Offices in New York and Boston
I wanted to introduce myself as the President of our Family Office Executive Search firm. Family Office Executive
Search is a recruiting firm that engages with single and multi-family offices to help them find talent for their teams.
This month we have signed two new engagements to fill four job openings, for a $10B+ multi-family office in New
York and a $1B+ family office in Boston. You can see these positions available on http://FamilyOfficeJobs.com and
here are direct links to the position descriptions in case you want to send in your resume and apply to be considered
for them:
1) Family Office Executive Leader Opportunity: http://FamilyOfficeJobs.com/Executive-Leadership-Position

2) Investment Advisor Associate Opportunity: http://FamilyOfficeJobs.com/Investment-Advisor-Associate

3) Wealth Planning Associate Opportunity: http://FamilyOfficeJobs.com/Wealth-Planning-Associate

4) Investment Analyst Opportunity: http://FamilyOfficeJobs.com/Family-Office-Investment-Analyst

5) Family Office Executive: http://FamilyOfficeJobs.com/Family-Office-Executive


If you are interested in these positions, the first step would be to complete the application form at the bottom of
any of the open position links in this email; if we see a relatively good match we will get in touch. Since we have had
900 resumes submitted to-date in the last year for positions we have helped fill, we cannot respond to everyone. But
even if there is not an immediate fit, we will do our best to keep in touch and retain your resume on file for future
family office mandates.

Of course if you run a single or multi-family office and you would like to access our talent pool of over 100,000
family office professionals that are in our database globally you can contact me regarding that as well - we are a fast
moving team and we would be happy to discuss how to work together.

Thank you for keeping us in mind here and please check http://FamilyOfficeJobs.com in the future for new
positions being posted.

Terry
Terry Penn
(407) 369-9130
President
Family Office Executive Search
Terry@FamilyOfficeJobs.com
328 Crandon Blvd. Suite #223
Key Biscayne, Florida 33149
http://FamilyOfficeJobs.com

Want to hear about jobs before other candidates?


Sign up to receive family office job alerts by entering your e-mail address on
this form: www.FamilyOfficeJobs.com/Alerts

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Family Office Exec Foresees Volatility


Stephen Diggle, the chief executive officer of Singapore-based family office Vulpes
Investment Management, expects to see a big surge in market volatility. As he puts it, it's
almost mathematically certain that an event will occur that sparks a rout in the market,
especially with so much algorithmic trading in the markets these days. It's interesting to hear
the insights from this successful trader who is now managing a family office portfolio.

An unexpected event -- a misstep from a major central bank or conflict on the Korean peninsula -- could
spark a global rout almost instantly, thanks to the increased prevalence of algorithmic trading, said Diggle,
the chief executive officer of Singapore-based family office Vulpes Investment Management. He is avoiding
going long or short on volatility, after reaping profits on U.K. biotechnology companies, an avocado orchard in
New Zealand and German real estate.

Weve reached a level of low volatility, and with complacency about this regime persisting, almost anything
could cause a spike in volatility, Diggle said in an interview. Its mathematically inevitable that volatility
will spike higher at some point, but I dont think the odds of a super spike like 2008 are that good.

Stimulus by central banks from Europe to Japan has damped price swings. Even though those forces are at
an inflection point, with the Federal Reserve flagging it will start to reduce its balance sheet, volatility in the
Treasuries market dropped this month to a record low, according to the Merrill Lynch MOVE Index. A
JPMorgan Chase & Co. gauge of expected swings in global currencies has risen since June, but this years
average of 8.8 is still the lowest since 2013.

The CBOE Volatility Index, also known as the VIX or fear gauge for U.S. equities, surged 62 percent in
the three days through Aug. 10, after President Donald Trump warned North Korea it faced fire and
fury. Still, it hasnt traded above its long-term average of 20 since the U.S. election in November. The
VIX reached a record high of 80.86 in November 2008.

While an increase in volatility is inevitable, Vulpes isnt betting on it because the timing is completely
opaque, Diggle said.

As options decay with time, owning options needs excellent timing, so we are not long volatility today, nor
would we advocate aggressively buying volatility today, Diggle said. But, at these levels, being short
volatility seems pretty reckless given how elevated valuations are.

The number of short positions on VIX futures hit a fresh peak this month.

Read the full article: https://www.bloomberg.com/news/articles/2017-08-21/hedge-fund-veteran-diggle-


says-odds-against-08-volatility-redux

11 | Family Office Monthly