The Mack Podcast The Intersection of Family Offices and Direct Investments
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Sep 30, 2025 Todd Kellerman, a partner at V3 Limited, advises family offices on direct investing strategies, while Tim Wray focuses on leveraging entrepreneurial skills within this realm. They discuss motivations behind family investments, the shift towards illiquid assets, and highlight the importance of governance. The duo emphasizes identifying strengths, building robust strategies, and navigating liquidity traps. They provide practical steps for starting direct investment programs, underscoring the need for alignment and operational advantages to avoid costly mistakes.
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Why Families Move Into Private Investing
- Families pursue private investments both to continue entrepreneurial legacy and to exploit unique operating advantages.
- Private equity returns show high dispersion so firms must identify where they have real edge.
Illiquidity Risks Grew With Big Allocations
- Family allocations to illiquid private assets grew dramatically, sometimes reaching 50–70% of portfolios.
- That higher illiquidity increases liquidity risk and follow-on capital requirements during downturns.
Leverage Network Rather Than Overreach
- Use your network to partner where you lack subject-matter advantage instead of stretching into unfamiliar industries.
- Pursue funds and co-invests with experts rather than building every capability in-house.