Texas Family Office

Jan 2

Written By Shash S

💸 $B++ Texas-based Single Family Office (SFO) is looking for early stage VC funds in 2024 and shares lessons for LPs investing in venture.

The insights below come from a conversation with the Principal (3rd Generation) of an Ultra-High-Net-Worth (UHNW) SFO based in Texas, who made their wealth in Media & Communications.

🧠 Investment Philosophy

Invest based on their strengths, i.e., helping build strong & enduring businesses.
Do not chase asset classes or quick returns (e.g., no hedge fund investments).

📊 Portfolio Construction

50% public equity (60% passive / 40% active)
20% cash (including fixed income)
15% real estate (commercial & residential)
10% private equity (50% funds, 50% direct)
5% venture capital

🚀 Venture Portfolio

5 fund-of-funds, both established and emerging, giving access to 40+ underlying managers (approx. $30M in commitments)
10 direct fund allocations (6 emerging, 4 established)
Access to B2B SaaS, AI, web3/crypto, FinTech
Primarily US-based funds

🔮 Looking Forward

Continue to build out early stage (Series A+) portfolio of VC funds
Looking for funds that fill gaps of existing portfolio, e.g., Life Sciences, international

✍🏼 Lessons Learned

For LPs: Pattern recognition is critical to find the best GPs, i.e., commit to talking to as many fund managers as possible (talked to 100+), or find a partner who can effectively do that for you
For GPs: Need to effectively communicate GP-thesis fit, i.e., what makes you different and how are you positioned to win

🙏 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 global LPs exchanging insights at HYPHAH’s LP Salons.
Venture Funds: Please e-mail connect@hyphah.com to be connected to this SFO (double opt-in).

#FamilyOffices #VentureCapital #EmergingManagers #OpenLP #HYPHAH #LPInsights #Texas #Media

Shash S