Family Office Podcast - Private Investor & Investment Insights

Richard C. Wilson, CEO, and president of the Family Office club identified the most common mistake that he has seen capital raisers make. They make the mistake of taking success with a direct investment model. Where there's no funds and turned it into fund model. The mistake is that they go to their current investors already like them, trust them and invest with them and say," Hey, would you be open to coming in my fund?" And they say, "Yes, sure", because I've already invested in four of their deals but people have not invested with before may not want to come into the fund is gonna be harder. They're trading one headache for another headache of their own pain of running around and finding the investors they need to close a deal in 6 to 8 weeks and independent sponsor model for the headache of promising a blind pool to investors within a fund model. And I would always rather to the headache is more hard work for me in the thing, which is going to really stop investors from considering a deal. I've seen people who have raised $300 million in direct investments, not be able to raise a $10 million fund. 

Direct download: 3228802-common-mistake-of-experienced-investment-advisors.mp3
Category: -- posted at: 4:00pm EDT