After years of guiding family offices along with other institutional investors ranging from hedge funds to leading private equity firms, keeping tabs on the progression of technology is both interesting and exciting at the same time, especially when worlds collide, and we see how tech is being used to produce actionable information that not only helps in the moment but continues to live on forever.
Unlike top financial institutions with billions of dollars at their disposal at any given time along with a ton of human capital (aka internal intelligence), family offices are often left in the dark unless they have a ninja/oracle guiding them because at a certain point the data becomes too much to handle. That’s also why hundreds of millions if not billions are invested annually in building out the best, most effective quant teams at Bridgewater, Citadel, Renaissance, etc. with the expertise to foreshadow what’s around the next turn.
Based on our experience, we are seeing an influx of family offices investing in technology companies (AI, social media, etc.) not just due to the buzz, but also for access to ground level information/innovations taking place each day, tech they can learn from and use to improve their overall portfolio, and so much more. When you’re operating at the highest level every move you make must have a strategic purpose.
Essentially, we are seeing a new trend where top family offices aren’t only recognizing the signs bubbling up, but actively investing in (or acquiring) such companies before they take off for two key reasons: Either they see a standalone opportunity with the probability of high returns or in the worst case scenario make an investment that will continue to drive insights that power other, more successful portfolio companies.
As we continue to guide family offices around the world we’ll share more insights… Stay tuned!