Wednesday, August 24, 2011

An Entrepreneurs Insights into Family Office Data Base Trends

The fast growing and rapidly evolving Family Office space as a separate vertical industry is a phenomenon not to be underestimated. This article is intended to highlight some of the top trends that affect the creation, use, and expansion of Family Office data base resources. Whereas this space was hitherto below the mainstream radar, there are daily more competitors jockeying for position and for the attention of Family Offices so that they might gain access to the very large pools of concentrated wealth that these organisations manage.


Some of the top trending items within the Family Office space include:


Trend #1


Frequently more fund managers from large fund management companies and middle to large investment banks are committing to monthly or annual subscriptions to ensure they regularly receive the latest updates to their Family Office data base resources. Given the amount of money involved for these people and organisations, they clearly have prioritised the need to have the most up-to-date information possible, the instant it is available.


Trend #2


I discussed in a recent article that spamming of any kind is never a good thing, especially not with Family Office lists that you purchase. Clearly that message hasn’t yet filtered down to some hedge funds that are still making the mistake of sending spam, or mass emails, to ultra high net worth (UHNW) wealth management firms. What’s surprising is that they are still not surprised by the low rate of response they receive from their canon full of buckshot campaign. Ultimately this will only serve to hurt (what is left of) their reputation within the industry.


Trend #3


The Family Office database product has almost become a mainstream list product. It’s not quite as mainstream yet as buying a list of people who are in the market for a holiday within 12 months, but if this trend continues it will go down that route. The major difference however will remain quality. There is an increasing number of media companies and individuals who offer Family Office directories for sale on the open market. The volume is at levels never seen before. Certainly, this growth will reflect the number of ultra high net worth (UHNW) families out there but a lot of it is opportunistic and mostly not worth the pixels it is displayed on the screen with. As a result you must perform thorough due diligence before acquiring a Family Office database or list.


Trend #4


The more sophisticated hedge fund managers and private equity fund managers have turned their attention to using the contact details of multiple Family Office lists. They deploy a complex multi-modality marketing method aimed at raising more capital. The basic principle of their methodology is to send out mailings, send emails, place phone calls et al that are all sequenced strategically to maximize the response rate, and over time convert more leads to funds. I have very little doubt that more fund managers will take this up over the next few years and the practice will grow. The irony is that the concept is already outdated, and the reality is that the true innovators and early adopters within that sector of the financial services industry, which targets Family Offices, are already deploying more intelligent multi-modality marketing automation to their processes.


Trend #5


You can still find Family Office databases for less than $1,000; if you look around you may event find a couple that are worth the purchase price, or more. The simple fact is that many Family Office database sellers are increasing their prices, and that is understandable to some degree as these resources do cost a lot to maintain and keep up-to-date year-in and year-out. What can you expect to pay for a Family Office database of reasonable quality? Your budget should start somewhere around $2,000, and ultimately expect to pay anywhere from $5,000 to $8,000 on the top end.


Years ago it would have take the Hubble telescope connected to a super computer to find a lot of detail on the Family Office industry and identify trends or patterns in the way the industry players are interacting with the resources that are available to them. These days it is much simpler. The information is out there if you look in the right places. The question is, with this new knowledge what are you going to do?


By watching trends and changes in specific parts of the investment industry you can discover how to use Family Office databases significantly more effectively. Who knows, as a result perhaps you will be able to fund, or be at least be a part of launching, the next great discovery that serves mankind.


Kind regards


Paul




About Paul J. Lange:

Paul J. Lange is a business mentor and business performance coach who helps small to medium enterprise and entrepreneurs to apply big business, enterprise disciplines and solutions to gain a competitive advantage and increase profits. 


Paul's 'Business DIET'© system has helped countless entrepreneurs and business owners around the world to launch start-ups, expand existing operations, and greatly improve bottom lines.


Paul is also one of Australia’s most connected management consultants, and leading business strategists, with a passion for helping corporate leaders, entrepreneurs and business owners who are committed to achieving outstanding results.


Paul’s support will help you to develop strategic direction, implement it, execute and make more money. He will have you starting to work on your business, instead of in your business, right from day one; and if you have already started down this path, he will help you to complete the transition to business owner from business manager.


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1 comment:

  1. Such family office blogs are very difficult to locate and I appreciate this blog for having bulk of useful information on the topic.

    ReplyDelete