Family Office Elite Spring_16

SIX STEPS by
to Fundraising With Middle Eastern Family OfficesG
Whether you are a seasoned fundraiser or just getting
started, for most, the Middle Eastern market is very
niche. With changes in the Asian markets, many
people are now expanding their efforts and looking to
the desert to raise money. According to the EY Family
Business Center, despite having many substantially
wealthy families, there are few single family offices
(SFOs) and even fewer multifamily offices (MFOs) in
the Middle East. Some estimates put the number of
SFOs at between 60 and 75.
Whether that’s right or not, most analysts think that
there are many more families that could afford to
run a family office than are currently doing so. But
this is going to change. Not least because the level
of expertise available to service family offices in the
Middle East has improved substantially in the last five
years.
There are many examples of very well run and extremely
sophisticated family offices in the region. The Al Touq
Group and Manafea Holdings in Riyadh, and the Future
Group and Majid Al Futtaim Group in Dubai, are just a
few examples. Most are, of course, discretely “hidden”
and aim to keep away from public attention. There are
some cultural formalities to be aware of when working
with Middle Eastern Family Offices. The following list
is not comprehensive but is intended as a primer for
considering cultural and business norms in the region.
Go to where the Family Office is. You need to learn how
your potential clients like to be contacted. Pick up the
phone and call, but not excessively. You cannot solely
rely on email interaction with these clients. Even with
the most astute and sophisticated businessman, very
rarely will you get a reply to your emails. In proportion
to how close you are to sealing your deal, check in with
your client with a friendly call.
Be aware of family and regional politics. Most families
are either known to each other through marriage or
common social circles. Be careful of name dropping
Abbas Hashmi
as it may backfire. Sometimes certain family offices
will avoid co-investing with another particular family.
Always remember that privacy and confidentiality are
the epitome of Middle Eastern family offices. State
a Clear Need. You need to create a strong emotional
connection to the cause. Don’t assume your clients
already know what the need is. Tell a story, make it
personal, and tell them how they can help. Build
relationships.
Gender differences. Many Middle Eastern cultures
definitely prefer doing business with men. That
does not mean, however, that as a woman you have
no chance. You will, however, have to prove yourself
at every step while men may get that respect from
the beginning. On another note, when meeting your
client’s family - do be respectful of their wives. Do
not go in for the hug or, god forbid, a kiss on the
cheek. Some women of these sub-cultures will not
even offer a hand to shake. Take your cues from them.
Do not assume anything. Respect your clients enough
to learn their family’s customs. That is, not necessarily
their religious customs, but how they practice within
their families. We have dealt with clients who keep
halal at home but are not so strict outside of their
home.
Prepare for a long close. Financial decisions are
consultative in nature for these investors. Before
making any final decisions, your potential donor will
most likely speak to family members and may even
go silent on you for months. Family elders play a huge
role as influencers in the investment process. If and
when you get to meet with these family members, do
make sure to be generous with your time as well as
extremely respectful and kind.
As more families in the Middle East organize into
proper SFOs, and the world gets smaller, we must all
recognize the need to be adaptable and culturally
aware. www.greencardcapital.com
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