Australian Family Office

Dec 21

Written By Shash S

💸 HNW Family Office based in Australia is looking for AI funds in 2024 and continuing to build out their venture portfolio through direct investments.

The insights below come from a conversation with the Principal & CIO of an High-Net-Worth (HNW) SFO based in Australia, who had a successful exit as a tech entrepreneur.

🧠 Investment Philosophy

Prefer direct investments and are active investors, e.g., sit on boards, advise founders, etc. Active supporter of entrepreneurs.
Looking to allocate directly to startups and funds, and helping other family office friends with their venture allocations.

📊 Portfolio Construction

40% venture
30% equity
30% cash / fixed income / real estate

🚀 Venture Portfolio

85% direct investments in venture-backed operating businesses (core strategy).
15% funds (approx. 10 funds).

🔮 Looking Forward

Focusing on existing portfolio of direct investments and getting them ready for exits so they can recycle capital.
Continuing to build out their venture portfolio and looking for US and European managers (particularly AI).

✍🏼 Lessons Learned

For LPs: Understand how capital call schedules work. Typical venture funds have a 4 year investment cycle. However, in 2020 and 2021, some funds called all the capital in the first 2 years.
For GPs: Be transparent, timely, and consistent in reporting. Proactively communicating concerns / positive news creates trust and deepens the relationship, which then leads to referrals to other LPs.

🙏 Special thanks to the Principal of this SFO for sharing their insights (shared with their permission, on the condition of anonymity).

🎷 Connect with Family Offices & LPs

Family Offices & LPs: connect with a curated group of LPs in Hyphah’s LP Salons.
AI-focused Venture Funds: Happy to connect you with this SFO (double opt-in).

#FamilyOffices #VentureCapital #EmergingManagers #AI #LPInsights #Australia #HYPHAH

Shash S