family office

“Our ideal model would be to try to build a sizable business every few years from scratch, but with a limited part of our capital, and the rest is just portfolio, and we invest in all kinds of things.”

“I want probably 30% liquid, because I always believe there is something around the corner. And I want to be the guy who buys and doesn't have to sell because I could get myself into the same problem as anyone else.”

“Having said that, I'd be pretty critical of some of the efforts to try to internalize and do it directly. Not that the people who are doing it aren't great, but if you look at Blackstone, I don't know how many people they have in the private equity department …”

“What I'm criticizing is misapplying it Into family and endowment management, where we should like tracking error. We should think about what you need to do to outperform, not shy away from it. I guess that's my biggest pet peeve, is best practices that are act…”

“As we go forward, I suspect you'll see more and more competition from family offices that are large and they will do deals competing with private equity firms.”

“In fact, some of the things I'm looking at to invest in for my family office right now are actually a lot smaller. Then the mega funds, simply because the numbers are out of this world. I mean, they're producing incredible numbers.”

“The number of people who made their money as investors with a two and 20 model who then start their own family office business and decide not to pay two and 20 is sort of insane to me.”

“For families who want to spend 95% of their time thinking about something other than investing and other than the asset base and how it's protected and managed. For most of those families, finding a great air traffic controller, a small number of employees, an…”

“I would say that it usually takes maybe a decade, which is good because a decade gives you time to have at least one crisis.”

“When pioneering portfolio management came out, it seemed like, okay, there's this mountain to climb. Everybody does it like Yale. And then over the course of the last 1520 years, we've had so much more money run into this endowment model, yet every institution…”

“I always say anytime you're trying to be the investment office for an institution or a family, you have to clear the highest trust bar in asset management. For a family, it's their hard-earned legacy. For an institution, you're often engaging with a committee …”

“In a few cases, it was a family office and they'd done a deal with an independent sponsor and the sponsor viewed the carry as sort of a levered option. Once it became clear that the levered option was not going to be in the money, they said, here are the keys.…”

“When you're in the nineties, you're still at a point where it was mostly family office capital. Invest in these types of strategies.”

“The flaws in many family offices, they don't hire the teams. If you're going to focus on direct investing in an area like private equity, in a sector like manufacturing, you better hire a world-class team who's got a real edge, experience, top quartile track r…”

“In many family offices, there aren't enough checks and balances on the decision-making process. The family calls the shot. That leads to suboptimal decision-making.”