Spanish Family Office

๐Ÿ’ธ $B++ Single Family Office in Spain is investing for the future 3rd generation.

Principal of an UHNW Single Family Office (SFO) based in Spain advises his investment team: โ€œYou are not working for me & my family, but for the future 3rd generation!โ€ 

The insights below come from a conversation with the CIO of an Ultra-High-Net-Worth (UHNW) SFO based in Spain, who made wealth in financial services. 

๐Ÿง  Investment Philosophy

  • Reputation is paramount: Prefer to work with people who are kind and respectful. That is in the DNA of the family and the operating business.

  • Long-term view: Endowment model with a 20-30 year investment horizon. Consider themselves stewards of capital for future generations. Working for the future 3rd generation of the family.  

  • Slow & steady: Prefer not to lose money vs. win big, e.g., prefer 2x consistent return vs. 50x one time. Very disciplined about investing in high quality assets.

๐Ÿ“Š Portfolio Construction 

  • 50% real estate (residential & commercial)

  • 25% private equity buyout

  • 20% preservation portfolio (2 years of cash flow as buffer for catastrophic event / no distributions from investments)

  • 5% venture capital

  • Financial services operating business

๐Ÿš€ Venture Portfolio

  • 2 fund of funds ($1.5M avg. check size)

  • 4 direct funds ($1M avg. check size)

  • Digital Health, Healthcare, FinTech

๐Ÿ”ฎ Looking Forward

  • Not reinvesting with all funds

  • Exploring US-based healthcare buyout funds ($1B - $3B)

  • Looking for European buyout funds

โœ๐Ÿผ Lessons Learned

  • Deepen relationship with GPs: First time funds are tricky with high risk & high volatility, and not sure if GPs will go the distance. Depth of relationship with manager is critical in understanding why they are raising a fund.

  • Do your homework: Meet with as many fund managers as possible before making a decision. Comparing strategies, thesis, portfolios, teams, and communities will help you make an informed decision.

  • Diversify and donโ€™t rush: Donโ€™t invest in just one PE or VC fund; need to diversify across stage, sector, vintage, and geography. After a liquidity event, donโ€™t rush to invest.  

๐Ÿ™ Special thanks to the CIO of this SFO for sharing their insights (shared with their permission, on the condition of anonymity).

๐ŸŽท Connect with global Family Offices & LPs

  • Family Offices & LPs: connect with a curated group of global LPs at Hyphahโ€™s LP Salons.

  • Private Equity Buyout funds (US & Europe): Please e-mail connect@hyphah.com to connect with this SFO (double opt-in).

#FamilyOffices #VentureCapital #PrivateEquity #EmergingManagers #OpenLP #LPInsights #Spain


Previous
Previous

San Francisco Family Office

Next
Next

Japanese LP