Firm Update: April 2024

Welcome to our April Broker – Dealer newsletter and to Q2 2024!

Below, I would like to share some thoughts on the extremely exciting growth of Family Offices and the opportunity this presents for independent bankers. 

To all of our success!

The Rise of The Family Office: Manna from Heaven For Independent Investment Bankers

One of the most profound changes in capital markets over the past few years has been the dramatic increase in the asset count and market influence of family offices. 

According to a new report from Prequin, the number of family offices globally has tripled since 2019, and they now collectively manage more than $6 trillion in assets. 

For the ambitious and thoughtful independent investment banker, this growth presents multiple exciting ways to build new practice revenue streams and value-adds. 

For starters, family offices are the ideal counterparties for alternative investments of all types, including direct investments in private operating companies and private market funds of all types – equity, debt, real estate, oil & gas, green energy, infrastructure, and more. 

And their generally smaller size – it is not unusual for a family office to have only a few investment professionals sourcing and diligence opportunities – makes them generally more open to new relationships than more established and traditionally “institutional” investment groups. 

Then their sheer number – with more than 4,500 family offices worldwide – naturally creates both variety and “independence of opinion” as to deal criteria and investment theses. 

All of the above creates a “large number” problem and opportunity that independent bankers are ideally and uniquely positioned to solve—i.e., clients and prospects seeking funds need a lot of help sifting through, building, and running thorough and exhaustive deal promotion processes to and with them.

Here are my three quick ideas as to how bankers can capitalize on these Family Office growth trends:

1.  Relationship Build. The math is powerful: Over 3,300 new family offices have been established in the past five years. And the number of people worth more than $100 million – the typical threshold for a family office – is now more than 90,000 (Wealth-X). 

And they all seek alpha (at least for a portion of their assets), hedging (always), and interesting and different investment opportunities and ideas. 

Who better to advise them on all of the above – and bring them off-the-radar opportunities – than us? 

2.  Build Fund Marketing Practices. In parallel with the explosion in the number of family offices, there has been an explosion of alternative investment funds of all types seeking to raise capital from them.  

Thus a match-making problem and opportunity, and one that some of the best-performing bankers on the GTS platform focus their practice on addressing and solving. 

For those of us that have not already, adding this service offering to our business practice is very much worth exploring and considering. 

In this regard, we would like to introduce Flowstone Partners to our platform.

Flowstone manages private equity investment products that address the unique requirements of smaller institutional and individual investors by combining the core benefits of private equity secondaries with flexible and accessible fund structures. 

3.  Advocate for our Asset class. As I will continue to mention, independent investment bankers primarily work in private markets. 

And, as evidenced by long-term average PE returns of more than 11% annually (and maybe more) and not coincidentally this rapid Family Office growth we are most certainly where the best market action is! 

Let’s shout it from the rooftops! 

To everyone we want to do business with and, perhaps more importantly, to ourselves. 

Yes, our business is complex. Lumpy and unpredictable. 

It is also one of the most lucrative businesses designed by human hands. 

And the need and timing for it has never been better than it is right now. 

The business is out there. Let’s go get it.

Compliance Updates

FINRA Reg CE Reminder. FINRA rules mandate that Registered Representatives complete their Regulatory Element CE training annually by Dec. 31.


– Michelle Mueller, Chief Compliance Officer


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