How I Invest with David Weisburd E80: How ~$16 Billion Multi-Family Office WE Invests
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Jul 26, 2024 Matt Farrell, Senior Investment Manager at WE Family Offices, discusses investing strategies for families with $50M-$1B+, including balancing risk tolerance and liquidity needs, finding alpha in the market, and selecting private fund managers. Topics also include the diligence process for managers, co-investing, and value-add in venture capital.
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Allocate Fees To Inefficient Markets
- Use passive indexing for efficient large-cap exposure and spend active fee budget on inefficient segments where manager alpha exists.
- Prioritize alternatives and yield-oriented strategies to harvest illiquidity premium and generate cash flow for clients.
Alpha Lives In Fragmented Niches
- Manager alpha often lives in fragmented, less-crowded niches rather than sponsor-backed, crowded strategies.
- Target non-sponsored lending and smaller market segments where spreads and covenants remain attractive.
Prefer Hungry, Transparent Managers
- Prefer smaller, early-career spinouts with a clear track record but before they scale into an asset-gathering machine.
- Demand transparency and operational clarity to avoid business-risk and staffing gaps in niche managers.