Finding & Funding Investments with High Return
It would appear that some Family Offices are now showing a predilection for direct investing to diversify portfolios and build new equity investment. Deal flow is a popular term amongst investors such as venture capitalists and describes the rate at which new business ideas and proposals are presented. Whether investors are motivated by high returns or not, it begs one important question: how best to enter the deal flow slipstream?

By Francois Botha
Published on Simple October 4, 2020

Growing, cultivating and leaving a legacy starts with one thing. Savvy longterm investment. And that’s achieved by investing capital at the most appropriate stage of the development of a company such as venture or growth. It’s about knowing why investment is wanting to be made, how much is being placed on the table, the vertical industry in which the investment is being made and the anticipated outcome. It’s about defining the investment parameters and then entering the investment pipeline.

What’s considered to be a high return to one investor doesn’t necessarily have the same connotation to investors and managers of Family Offices and Private Wealth Owners or Ultra High Net Worth Individuals (UHNWIs) for example, where a high return may mean something completely different. The latter tend to take a longer term view regarding investment. The intent behind the investment leans towards nurturing and growing an established Estate for future generations. This is why many Family Offices and wealth owners tend to invest in companies close to listing or perhaps on the brink of buy-out. They tend to be safer bets that require a substantially larger initial outlay.

Explaining Deal Flow

Investors are investors regardless of whether he or she has a pocketful of cash or owns the printing presses on which that cash is printed. Yet, an investor wouldn’t be an investor without the ability to invest. Whether the high return is expected to come with a high risk or whether the goalposts are slightly longer term, one conundrum remains the same: Where to find these worthy high return investments?

About the Authors

Francois Botha

Francois Botha

Simple Founder. Strategy Advisor

Francois believes that the next generation of family leaders need new, simple tools and trusted experts with a fresh outlook.

Connect with Francois Botha View Francois Botha Profile

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