Dedicated Investment Criteria 

AFOA is seeking discretionary projects (including off-market secondaries) at inflection points poised for growth in industries where AFOA and its members have domain experience and can add value. The size available should be in the $5-50M range (preferably $10-20M).

Utilization of attractive opportunities in Venture Capital

AFOA’s members are the most successful founders (HNWI) and family business entrepreneurs. We strongly believe that leveraging our entrepreneurial investors' authentic knowledge and access is the best support we can provide to entrepreneurs in their Growth stage to help them take their companies to the next level. In the changing investment landscape, venture capital (“VC”) is emerging as a crucial and strategic asset class. Family Offices should shift their perspective to view venture capital as a long-term strategic opportunity, not just a short-term gamble when it comes to direct investments. 

When it comes to fund investments we will help members to overcome the limitations of the current VC fund model, which is characterized by 10+ years of lock-up, valuations inflated by a large series of financing rounds with no real life test of the valuation until an actual exit is taking place and most of the funds delivering sub-market returns measured by actual distributed cash vs. invested capital (DPI). 

AFOA Alliance is to overcome this model by using different investment approaches to buy into the top performing funds and portfolio companies. We will (i) use unused pro-rata shares available from successful VC funds, which have no dry powder left, we will (ii) buy existing LP stakes (secondary deals) instead of participating in new funds being setup and we will (iii) negotiate the opportunity for co-investments for our platform and for our members. 

Next Generation in Private Equity Investment

The biggest advantage Family Offices have over Private Equity firms is patient capital. In contrast to traditional Private Equity funds, patient capital provides a more flexible and long-term approach to investing in privately held companies. Investors that can deploy capital from their own balance sheets, rather than through closed-end funds, can offer continuous support to companies throughout their growth journey and stay invested in the winners. This approach allows for a more strategic and relationship-oriented investment philosophy. 

When it comes to direct investments, our Private Equity investment focus is on profitable and growing mid-sized companies in selected target industries (see above). Our approach is to acquire majority stakes in these companies and develop them in close collaboration with the entrepreneurs and management teams. Together with our Family Office and HNWI Alliance members, we can operate within the companies and help them scale effectively. We support, for example, the transition from founder-led to management-led organizations, global scaling to Europe and the USA, establishing key performance indicator-based corporate governance, and growth through targeted add-on acquisitions. 

Just as Private Equity Funds disrupted the public markets in the mid-1980s, Family Offices are now starting to disrupt traditional Private Equity firms with their patient capital strategies. The stability provided by patient capital allows Family Offices to weather market fluctuations and economic downturns more effectively. This can include making significant capital expenditures, pursuing transformative acquisitions, or investing in innovative technologies that may not yield immediate returns but are crucial for future growth. Patient capital promotes stability and supports strategic decision-making. Without the need to conform to predefined exit strategies, Family Offices can focus on building long-term value. 

Selection of Specific Real Estate Opportunities

About 18 months ago we saw a massive increase in interest rates in an incredibly short period of time. Many of the Real Estate deals that Family Offices invested in are now under water. As a result of poor performance in Real Estate as well as in Private Equity in the past year, many Family Offices are reevaluating their investment strategy. What is going to happen, is that Family Offices are going to start to rely more on experts in various verticals - real estate being one of them. 

We at AFOA as an Alliance of Family Offices will bring these experts together from our global network and invest in Real Estate projects in the US and Europe, in strong growing regional markets like Texas, Florida and Arizona, and segments with higher ROI’s and lower risk on an opportunistic basis, e.g. in subsidized affordable living projects in Europe and/or by using construction tech to build more energy efficient, fully digitized buildings in a more cost efficient way. Investments will be made either on a project level or in baskets bundling similar projects to implement a selected strategy (e. g. Student Housing or conversion of industrial sites).

Sometimes a family does want to sell an estate in a confidential, trustful environment. AFOA Alliance can provide such an environment and offers on the flip slide true off-market opportunities.

AFOA Investments in Digital Asset

The time has come for single-family and multi-family offices to prioritize education on digital assets. Understanding the rules of the road and forming a clear perspective on this transformative asset class is no longer optional—it's essential.

As a Member of the AFOA Alliance, you will gain access to unparalleled insights and education from leading international experts and investors in digital assets through our AFOA Academy. Education is the critical first step in preparing family offices to explore potential investments in digital assets. This extends beyond tokens like Bitcoin and Ethereum to encompass the broader ecosystem, including:

• Decentralized Finance (DeFi): Revolutionizing traditional financial services.
• Non-Fungible Tokens (NFTs): Unlocking unique digital ownership.
• Decentralized Autonomous Organizations (DAOs): Redefining governance structures.
• Stablecoins: Bridging the gap between crypto and fiat.
• Central Bank Digital Currencies (CBDCs): Shaping the future of government-backed digital money.

These innovations are integral to the emerging blockchain-based financial system. As these tools evolve and mature, they are poised to influence investment strategies and reshape financial transactions globally.

Now is the time to self-educate and prepare for the eventual shifts in how digital assets are utilized, how they impact investment landscapes, and how they might forever alter everyday financial interactions. With the AFOA Academy, you’ll be at the forefront of these developments, equipped to navigate this transformative era confidently.