New York Multi-Family Office
💸 $30B+ MFO pausing on venture investments while exploring uncorrelated strategies (to S&P).
The insights below come from a conversation with an investment executive of a $30B+ MFO based in New York that manages portfolios for Ultra-High-Net-Worth (UHNW) family offices.
🧠 Investment Philosophy
Build bespoke portfolios for each family based on their specific risk, return, and liquidity requirements.
Usually need approval for venture, private equity, real estate (i.e., long-term strategies) and have discretion over more liquid products.
🚀 Venture Portfolio
Had active VC mandate in 2021 & 22 and built a fund-of-funds, both established and emerging managers.
Made direct investments, via secondaries, into some pre-IPO companies.
🔮 Looking Forward
Venture is not attractive at the moment, due to the long lock-up period. Higher yields are available at lower risk and shorter duration, solving the short-term liquidity needs of a lot of families.
Looking for credit, distressed, middle-market lending opportunities that have low correlation to S&P and global macro environment.
Continued interest in early stage healthcare, biotech, and deep tech.
No interest in crypto / NFTs / web3.
✍🏼 Lessons Learned / Advice
For LPs: Ensure you follow a thorough due diligence process for every decision. Read through all documentation, particularly the financials. And conduct extensive reference checks.
For GPs: Lean into your strengths and own (and be transparent about) your weaknesses. Don’t try to be all things to all people.
🙏 Special thanks to the Investment Executive for sharing their insights (shared with their permission, on the condition of anonymity).
🎷 Connect and Collaborate
Family Offices & LPs: connect with a curated group of global LPs in Hyphah’s LP Salons.
Fund Managers: If you have secondaries in pre-IPO companies / middle market credit opportunities / distressed properties (hotels, commercial, opportunity zones, etc.), happy to connect you with this MFO (double opt-in, please email connect@hyphah.com).
#FamilyOffices #VentureCapital #EmergingManagers #LPInsights #OpenLP #NewYork #MultiFamilyOffice