The average family office takes closer to 90 days to reach an investment decision, compared with 60 days or less for the average high-net-worth investor, FO Pro — The Family Office Professional reported, citing Ryan Austin, founder and CEO of Arondight Advisors.
High-quality private-market opportunities carry limited allocations that can be gone by the time a family settles who owns what or when it can commit the capital, Austin said. "Decision velocity is the big thing," he said, adding that speed is the main obstacle in his work with founders, fund managers, venture capitalists and private equity firms raising capital. He also advises several family offices on strategic positioning, communications and deal sourcing.
For a family office weighing a co-investment, that makes the decision mandate the item to fix before diligence opens, Austin said: the firms that lose allocations are the ones still resolving internally who may commit. He named uncertainty over who actually holds the mandate to say yes, and requests to place family members in board seats or staff jobs, as recurring sticking points.
Decision velocity is the big thing.Ryan Austin, founder and CEO of Arondight Advisors
Reported by the Direct & Co-Investments desk from FO Pro — The Family Office Professional. Published . Corrections