Chilean Family Office

Jan 24

Written By Shash S

💸 HNW Single Family Office (SFO) based in Chile is building out their private equity & debt portfolio, and shares lessons learned for other Family Offices

The insights below come from a conversation with the Principal (2nd Gen) of a High-Net-Worth (HNW) SFO based in LATAM, who made their wealth in the Media & Entertainment sector.

🧠 Investment Philosophy

Common sense prevails: Invest in businesses that have intuitive products / services that customers need. “Forget analysis, data sets, impact, etc…does it make sense for this business to exist, are they providing a valuable offering, and are they making money?”
No substitute for relationships: Have a long-term horizon and focus on developing enduring relationships with founders and fund managers.
Information digestion: Keep close tabs on investments made (i.e., tracking & reporting), continuously look for differentiated sources of information, and, most importantly, have a system to analyze inputs that inform decisions.

📊 Portfolio Construction

80% public equity & fixed income
20% alternatives (50% venture, 50% private equity & private debt)
Operating business + real estate

🚀 Venture Portfolio

15-20 direct investments (were operating as a venture fund)
1-2 fund investments

🔮 Looking Forward

Proceeding cautiously given geopolitical risks
Pausing on venture till distributions start coming in
Expanding private equity and private debt portfolio

✍🏼 Lessons Learned

Direct investments are tough: Sourcing and diligence processes need to be systematized. “FOMO screws up systematization. Well established VCs succumb to it, as do family offices.”
Operate as ONE family office: Managing expectations is hard. Ensure complete transparency and timely communication of decisions. “Everyone in the family should know where the money is and always be on the same page.”

🙏 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

Family Offices & LPs: Join a curated group of global LPs at Hyphah’s LP Salons.

#FamilyOffices #PrivateEquity #PrivateDebt #VentureCapital #OpenLP #LPInsights #Chile

Shash S