Family office vs. venture capital fund tricks with Obediah Ayton

Early-stage startups investment guides with Obediah Ayton? 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.

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 added “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 exciting 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 business executive? 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: Investment Firms: Family offices are increasingly part of syndicates for deals, and strong introductions can occasionally come to them from other institutional investment firms (private equity, venture capital, or hedge funds). Seek out the Largest Offices: Family offices don’t invest more than 5 to 10% of their net worth into venture capital; the differential goes to traditional private equity and hedge funds, direct stock and bond portfolios, and real estate. This implies that for entrepreneurs seeking funding, larger family offices ($2 to $10 billion in net worth) are better places to start the search relative to smaller, niche families who may be in wait for the “perfect deal” but usually follow other professional institutions. Family Office Summits (Run by Families, Not events companies): Time is money and deciding as to which events to spend your time on is as essential as any monetary transaction.

With a huge amount of the UAE’s wealth concentrated in the hands of high-net-worth families and individuals who are now looking for promising direct investment opportunities, SMEs are overlooking a crucial area of untapped financing. The UAE Family offices investment strategies are particularly varied with each family having their own philosophy, interests and areas of expertise and without the shorter-term objective of traditional private equity or investment banks.

Obediah Ayton on how to raise money from family offices: Biggest advice: – To let the Family Office understand that you’re interests are aligned with theirs. That you’re in this for the long term, not just a few transactions. Even if they’re great deals. Intelligence is a commodity. Integrity is not. To do: Listen. Add value at all times. Ask about their goals and objectives. Be authentic. Ask about what they are currently looking for. Do what you say you’re going to do. “Trusting is hard. Knowing whom to trust, even harder.”

Right now is a great time to build close relationships with Family Offices for future capital raises! The Light at the End of the Tunnel: Ultimately, the extra effort required to build relationships with family offices is more than warranted. Family offices bring much more than investable capital to the table — a stable relationship with one can offer the power of a warm introduction and a broader network. Many of these family offices are connected with ultra-wealthy family offices and leaders in a variety of businesses.

Obediah Ayton about 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.