How I Invest with David Weisburd E80: How ~$16 Billion Multi-Family Office WE Invests
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Jul 26, 2024 Matt Farrell, Senior Investment Manager at WE Family Offices, discusses investing strategies for families with $50M-$1B+, including balancing risk tolerance and liquidity needs, finding alpha in the market, and selecting private fund managers. Topics also include the diligence process for managers, co-investing, and value-add in venture capital.
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Fee-Based Multi-Family Office Model
- WE Family Office acts as a fee-based, non-discretionary advisor to ~100 families across $16B, positioning itself as an independent quarterback for clients' wealth.
- They serve clients typically between $50M–$1B+ who need outsourced family-office services and objective advice.
Make Education Central To Allocation
- Educate clients thoroughly about risk and liquidity before allocating to illiquid assets like venture.
- Use backtests and drawdown examples to confirm clients can tolerate long-duration private investments.
Behavioral Finance Shapes Portfolios
- Behavioral finance is half the job: advisors must keep clients from selling in panic during volatility.
- Illiquidity can act as a feature by preventing impulsive exits and smoothing client psychology.