The Unprecedented $84 Trillion Wealth Transfer In The Next Two Decades, Driven By Surging Family Office Growth, Marks A Transformative Era In Finance.

Welcome to my brand new Newsletter, Family Office World. I'm Ronald Diamond, Chairman & CEO of Diamond Wealth . I have put together a syndicate of over 100 Family Offices ranging in size from $250 million to $30 billion. We invest together in the private markets (private equity, real estate, venture capital, credit, special situations) where I act as the point person. I helped to create the Family Office Initiative at 美国斯坦福大学 where I served as the Chairman of the Advisory Board for the Disruptive Technology Center. I am in the process of helping to set up a Family Office Initiative at one of the top Universities in the world (to be announced in the next 60 days). I Chair 3 TIGER 21 groups including a newly created Family Office chapter. I serve on the Advisory Board of 10 companies including: Cresset , Fin Capital , StoicLane , InvestBev , Semasio , & The Aspen Institute and act as Chairman for 4 of them. I am a frequent speaker at Family Office and Alternative Investment Conferences, and have spoken at over 100 conferences around the globe. I'm also the Founder of Family Office World Media — (www.familyofficeworldpodcast.com ) whose mission is to educate the market about Family Offices. Earlier in my career, I founded Pinnacle Capital — a $250 million hedge fund that outperformed the S&P index 10 out of 10 years — before ultimately selling my company to an international investment firm. Previously I served as a Senior Managing Director at Bear Sterns Asset Management . I started my career as an analyst at Drexel Burnham Lambert after graduating magna cum laude majoring in Economics from 美国西北大学 .

"What is a Family Office?" and "Why Does it Matter?"

There are roughly 15,000 Family Offices around the globe which currently control approximately $10 trillion in assets. In comparison, there is only $6.5 trillion globally in the entire hedge fund world. But even more important than the current size of Family Offices, we are about to experience the largest transfer of wealth in history. It is estimated that approximately $84.4 trillion is being transferred from the baby boomers to the next generation over the next 20 years. This has massive implications from how companies will be financed in the future, how Family Offices are going to disrupt the private equity and venture capital industries, and lastly, but most important, the major role Family Offices are going to have in the world of philanthropy. While the industry is growing exponentially, the current model does not work. Only 25% of Family Offices make it to the second generation, 10% make it to the third generation, and 5% make it to the fourth generation. But that’s about to change. During my TEDx talk, I review the origins of Family Offices, the current landscape in the evolution of Family Offices and future trends in Family Offices.

Family Offices, The Largest Share of Capital Markets (Infographic)

A picture is worth a thousand words.? Wayne Gretzky said he wanted to skate to where the puck was going.?For anybody in the real estate, private equity, venture capital, credit or hedge fund space, this graph shows where the puck is going if you are looking to raise money -- Family Offices.

We are at an inflection point in the evolution of Family Offices.?While we are still only in the third inning, Family Offices are starting to become more efficient, less fragmented, and less siloed.?And they are starting to become more professional.? This is a trend that will continue to gain momentum over next several decades.

Here’s what needs to happen next.?If Family Offices truly want to compete with the top PE, VC, and real estate firms for deal flow, the only way this is going to happen is if Family Offices become more accessible and open about exactly what they are looking to invest in.? It doesn't mean they have to talk to every service provider, but it does mean that they need to let the market know exactly what types of deals they are looking for. We are gradually starting to see this happen.?The problem right now is very simple.?The service providers don’t know how to get in the door of the Family Offices.?We are starting to see more and more Family Offices let the market know what they are looking to invest in, what their average size check is, and when they are in a liquid position.?As this happens, it is inevitable that we are going to see more and more people who are looking to raise money approach Family Offices as their first choice, and have success.

As I discussed with David Rubenstein The founder of The Carlye Group and The Family Office Declaration Partners, I believe that as private equity disrupted the public markets in the mid 1980’s and then exploded into a multi trillion dollar industry, Family Offices are slowly starting to disrupt the private equity, venture capital, and real estate industries. Things are changing in real time and it's fascinating to watch.

"I would not be surprised if in five or ten years from now there'll be some Family Offices that will be as well known as Blackstone, The Carlyle Group, or KKR" - David Rubenstein

The vision of Diamond Wealth is to create a community of like-minded Family Offices who want to collaborate, share best practices, and institutionalize the Family Office community.

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