Diamond Wealth

???At my recent lecture at the Harvard John A. Paulson School of Engineering and Applied Sciences, I shared a thesis that underscores a monumental shift in the world of private markets: ?? Family Offices are poised to disrupt Private Equity and Venture Capital. Let me set the stage. Today, there are roughly?15,000 family offices managing over $10 trillion globally.?We’re at an inflection point, much like the mid-to-late 1980s when Private Equity and Venture Capital disrupted public markets. Now, Family Offices stand ready to disrupt the disruptors. Here’s why: ?? The Private Equity Model: Predictable, But Flawed Private Equity firms typically acquire companies, hold them for 3–5 years, and sell them. This cycle isn’t inherently bad—it’s simply how these firms are structured and incentivized. However, this model creates friction: 1??. High transaction costs?from frequent buying and selling. 2??. Disruption to the businesses?as they adapt to new owners every few years. 3??. Short-term horizons?that prioritize immediate returns over long-term growth. Over two decades, a single business might change hands 3–5 times. With each transaction, the business incurs more friction, taxes, and upheaval. ? Enter Family Offices: A Better Way Forward Family Offices, on the other hand, leverage a unique advantage:?patient capital.?Unlike Private Equity or Venture Capital firms, they aren’t bound by the constraints of short-term compensation models. Instead, Family Offices can: ? Buy and hold businesses?for 20+ years. ? Allow investments to compound?over time. ? Focus on long-term value creation?rather than quick exits. This patient approach results in significantly better outcomes. By eliminating the friction of constant transactions, Family Offices can foster stability and growth within the companies they own. ?? Why This Matters This doesn’t mean Family Offices will replace Private Equity or Venture Capital. Both will remain vital in the broader financial ecosystem. But Family Offices are uniquely positioned to disrupt these industries because of their ability to operate with?permanent capital. They aren’t incentivized to "flip" companies. Instead, they’re focused on?maximizing long-term returns?and creating?enduring value.?As more businesses recognize the benefits of this model, we’ll see a fundamental shift in how private markets operate. The future is clear: Just as Private Equity and Venture Capital reshaped public markets,?Family Offices will transform the private markets—forever. ?? What are your thoughts on this shift? #familyoffice #familyoffices #harvard

What makes Family Offices the ultimate partners for entrepreneurs with a long-term vision? In my recent workshop with Entrepreneur Media, titled “How to Work With Family Offices to Raise Capital, Make Connections, and Grow Your Business,” we explored the unique advantages Family Offices bring, particularly their commitment to long-term investment horizons. Unlike private equity firms with shorter hold periods, Family Offices often work with “patient” or “permanent capital,” allowing them to support businesses through sustained growth rather than seeking rapid exits. Patient or permanent capital means Family Offices can invest without the usual pressure for quick returns. This flexible, long-term funding gives entrepreneurs the freedom to build and innovate, aligning Family Offices as genuine partners who focus on enduring goals rather than short-term gains. Eric Becker, Co-Founder and Co-Chairman of Cresset, a Multi-Family Office managing over $50 billion, emphasized how Family Offices’ “permanent capital” mindset is ideally suited for entrepreneurs seeking stable, committed partnerships. As Eric put it: “In general, Family Offices are more in the long game, really interested in longer time horizons... Even the name ‘permanent capital’ is awesome at indicating that. And so that is very special for an entrepreneur because everyone knows that in the private equity world, hold periods are typically 3 to 5, maybe 7 years. It’s just very different in the Family Office world. Family Offices have the good fortune to be able to play the long game, and most of them are.” I often make this same point. As Founder and Chairman of Diamond Wealth, with experience working with over 100 Family Offices, I see firsthand how their patient approach makes them ideal for founders focused on lasting value. This commitment to patient capital is timely, as $84.4 trillion is projected to transfer from baby boomers to the next generation. This shift means that younger inheritors, often inclined toward impact-driven investments, are managing more capital. Family Offices are well-positioned to use this patient capital for ventures that prioritize both financial returns and social impact. We we’re also joined by: ? Pete Kadens: Chairman of The Kadens Family Foundation and Fello, with experience founding and leading impactful ventures in cannabis and solar energy. ? Mike Gamson: Co-Founder and Managing Partner at Permanent Capital Partners, with a background in scaling growth at LinkedIn and advising numerous companies. This incredible workshop highlighted why Family Offices are increasingly valued by founders who prioritize lasting partnerships over quick gains. Family Offices offer something rare: a commitment to creating true value beyond immediate financial returns, making them ideal partners for entrepreneurs focused on building something that lasts. #FamilyOffice #FamilyOffices

I recently had the opportunity to deliver the keynote address at the Information Management Network (IMN) Real Estate Family Office and Private Wealth Management Forum, where we explored how Family Offices are reshaping the future of real estate investment. With an $84 trillion wealth transfer underway from baby boomers to the next generation, Family Offices are redefining how capital is raised, allocated, and deployed—especially in real estate. This shift is more than financial; it’s a transformation in values. The next generation of Family Office leaders isn’t just focused on wealth preservation—they’re focused on making a meaningful impact through their investments. At the forum, a central question emerged: How will this wealth transfer reshape real estate investment for Family Offices? Here’s how the next-gen is leading the change: ?? Sustainability Takes Center Stage The new generation prioritizes investments that balance profit with purpose. From green buildings to sustainable urban projects and affordable housing, these investments go beyond returns, addressing critical environmental and social needs. ?? Direct Investments for Greater Control Family Offices are increasingly moving toward direct investments, reducing costs and bypassing intermediaries. This approach gives them more control, ensuring projects align closely with their values for a lasting impact. ?? Tech-Driven Efficiency Over 60% of Family Offices are adopting AI and proptech to streamline operations, make data-driven decisions, and manage portfolios with agility. These tools give Family Offices a competitive edge in a complex market. ?? Focus on High-Impact Sectors Student housing is particularly appealing, combining financial stability with social benefit. This sector aligns with Family Offices’ focus on creating long-term societal value and addressing critical housing needs. As we look to the future, this wealth transfer is not only changing who holds the capital but also redefining what “success” means in real estate. Family Offices are setting the stage for a new era where purpose and profit go hand in hand—one impactful investment at a time. #familyoffices #familyoffice

Can Family Offices Outperform Traditional Private Equity and Venture Capital? When it comes to long-term impact and sustainable growth, Family Offices might just have the upper hand. Why? They possess a unique advantage that traditional private equity (PE) and venture capital (VC) firms often lack: patient capital. Unlike PE and VC firms, which are bound by short investment cycles, Family Offices operate without a “shot clock.” This freedom to hold investments indefinitely allows them to focus on true, lasting growth rather than short-term returns. Consider some of the most prominent Family Offices, like the Pritzkers, Crowns, and Dells. With the right infrastructure, they can bypass traditional channels and compete directly in private markets. They’re set up to outperform PE and VC firms because they aren’t pressured to sell within three to five years. Instead, they can take their time, letting investments grow naturally and compound without frequent disruptions. In the typical PE or VC world, investments go through a cycle: a firm buys a privately held company, holds it for a few years, then sells it—often to another PE firm, which repeats the process. Over time, these repeated buy-sell cycles generate significant friction—taxes, operational shifts, and the focus on short-term strategies. Family Offices, on the other hand, can acquire a company and simply hold it. This approach reduces transaction costs and avoids unnecessary disruptions, allowing for exponential growth over decades. Currently, only a handful of Family Offices have the infrastructure to operate this way. But I believe that’s changing. As more Family Offices recognize the power of patient capital, they’ll increasingly distinguish themselves from traditional PE and VC models. They’re not just adopting a different investment style; they’re reshaping the landscape, showing us what true long-term investment looks like. Family Offices are proving that, with the right resources and strategy, they can redefine sustainable investing—and the impact is only just beginning. #familyoffices #familyoffice

How to Work With Family Offices to Raise Capital and Grow Your Business "Family Offices currently have approximately $10 Trillion in assets." - Ron Diamond, Chairman & CEO of Diamond Wealth and Family Office World Media Join us on October 30th at 2 pm ET to learn how to engage with Family Offices to raise funds, establish valuable connections, and expand your business. Whether you’re an entrepreneur or a small business service provider, Family Office thought leader Ron Diamond and his panel of experts will provide insights and strategies to navigate this multi-trillion-dollar landscape. Key Speakers: Ronald Diamond Founder and Chairman of Diamond Wealth Eric Becker Co-Founder and Co-Chairman of Cresset Pete Kadens Chairman at Fello & Chairman at The Kadens Family Foundation Mike Gamson Co-Founder & Managing Partner of Permanent Capital Ventures

Why Should Family Offices Invest in Education to Shape the Future of Finance and Philanthropy? As Family Offices grow in influence, a key question arises: how can they prepare the next generation to manage wealth with purpose and skill? The answer lies in education—particularly university-led programs that guide family members, service providers, and finance students through the complexities of Family Office management. Equipped with the right knowledge, Family Offices can build a future of sustainable impact, strategic investing, and effective succession planning, transforming into highly professionalized entities that rival private equity and venture capital firms. Universities like the University of Chicago Booth School of Business are launching programs such as the Family Office Initiative, covering governance, investment strategies, and succession planning. Unlike many pay-to-play Family Office conferences, these university programs offer unbiased insights, free from sponsorship influence, ensuring audiences gain real, actionable knowledge. Education is essential for family members to confidently navigate wealth management, succession, and investment strategy. Recently, I had the opportunity to speak on this topic at Harvard, where I emphasized that education not only strengthens Family Offices but also fosters a legacy of impactful leadership. As I shared with the Harvard audience, educating family members and future finance professionals is the foundation for a Family Office ecosystem that prioritizes purpose, strategic growth, and long-term vision. CNBC recently highlighted Family Offices as a top career track in business schools, attracting students seeking roles that combine financial returns with societal impact. Family Offices offer an environment where purpose-driven work aligns with professional growth, setting them apart from traditional finance roles. Education also supports the transformation of Family Offices into professionalized, scalable entities, integrating best practices in investment rigor, team-building, and leadership transition. This evolution equips Family Offices to operate with the same level of sophistication as private equity or VC firms, ensuring they thrive across generations. University programs provide students with a broad understanding of Family Office operations, including impact investing and philanthropy. Service providers, from wealth managers to legal advisors, also benefit from specialized training, deepening their ability to support Family Office missions effectively. With education as a foundation, Family Offices are positioned to lead with purpose, sustain growth, and set new standards in philanthropy and impact investing. Initiatives like Booth’s Family Office Initiative equip family members, service providers, and future leaders with the skills needed to drive lasting change in finance and beyond. #familyoffice #familyoffices

What does the future of real estate investment look like as Family Offices take center stage in capital raising? With the upcoming $84 trillion wealth transfer from baby boomers to the next generation, Family Offices are set to redefine how capital is raised, allocated, and deployed, particularly in real estate. This shift, driven by a new generation of heirs and decision-makers, is reshaping both the scale of investments and the values behind them. Real estate has always been a stable pillar for Family Office portfolios, providing consistent returns and preserving wealth. However, the next generation is prioritizing sustainability and socially responsible investments. Reports from PwC highlight emerging trends like hybrid work models and sustainable urban environments, with Family Offices funding projects such as green buildings and affordable housing. A key strength of Family Offices is their ability to invest with a long-term perspective, unlike institutional investors who often need short-term results. Despite challenges like rising interest rates and inflation, Family Offices continue to rely on real estate as a hedge against economic uncertainty. In 2024, many Family Offices are focusing on distressed assets and large-scale projects, which offer potential for growth over time. Student housing has become an increasingly attractive sector for Family Offices, offering stable demand and aligning with socially conscious investment strategies. By supporting affordable, sustainable student housing, Family Offices are able to combine financial stability with positive social impact, making this sector a key component of their real estate investments. Another trend is the shift toward direct investments, allowing Family Offices more control and alignment with their values. By cutting out intermediaries, they reduce costs and gain greater involvement in the projects they fund. Deloitte's Family Office Insights series points out that this direct approach enhances their role in real estate capital raising. The generational wealth transfer is also driving the adoption of technology. A UBS and Campden Wealth report found that 62% of Family Offices are using or planning to use artificial intelligence for real estate management. These technological tools help streamline operations and enhance decision-making, particularly in sectors like proptech, which Family Offices are increasingly integrating into their portfolios. In summary, Family Offices are shaping the future of real estate investment through their long-term approach, direct involvement, and focus on sustainability and innovation. As the $84 trillion wealth transfer progresses, Family Offices will continue to drive financial returns and social impact in sectors such as student housing, sustainable developments, and property technology. #familyoffice #familyoffices