San Francisco Family Office
💸 San Francisco-Based UHNW Single-Family Office is slowing venture investments while “working hard for returns" with portfolio companies
The insights below come from a conversation with an Ultra-High-Net-Worth (UHNW) SFO based in California, who built their wealth in technology and healthcare.
🧠 Investment Philosophy
They look for accretive networks, i.e., differentiated insights, deal flow, and networks (not just co-investments).
Explore how investments fit into the long-term strategy of the portfolio and if they add value to the overall portfolio, e.g., business development, etc.
Family Office is setup as an evergreen structure / permanent capital vehicle, i.e., an unlimited time horizon with a self-funding portfolio
Attractive risk-adjusted returns
📊 Portfolio Construction
Diversified across asset classes; mix of funds, directs, and co-investments
55% illiquid (20% venture, 25% private equity, 10% real estate).
45% liquid (public equities, fixed income, and cash).
🚀 Venture Portfolio
25-30 funds
75+ direct deals
Healthcare, Fintech, SaaS, AI / ML focus, Series A/B
Tend to avoid hardware and therapeutics
🔮 Looking Forward
"Working hard for returns:" Spending a lot more time with founders of existing portfolio companies to help with business development, capital intros, etc.
Slower pacing: Getting paid to wait given higher interest rates; opportunistically deploying capital in this environment;
Exploring private credit and secondary strategies
✍🏼 Advice for LPs
Define portfolio strategy: Take a step back and think about the portfolio you want to build over time vs. looking at individual deals in isolation, e.g., what is the portfolio strategy you want to build (stage, sector, size, geo focus, etc.)?
Evaluate GP performance: Fund commitments are two-way partnerships. It’s ok to skip vintages if GPs did not perform / did not provide the level of information flow expected, even if that means not being invited back to future funds.
🙏 Special thanks to this SFO 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
Founders of Healthcare / SaaS / AI-focused Series A/B companies: please e-mail connect@hyphah.com to be connected with this SFO (double opt-in)
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