Overview
McDermott’s Family Office Capital & Investment Strategies (FOCIS) group brought together more than 100 family office principals, executives, CIOs and investment teams to exchange ideas, build connections and discover innovative investment strategies at the second annual Fall FOCIS Forum.
Building on the success of last year’s inaugural event, the invite-only forum featured a series of conversations with distinguished panelists from single family offices, institutional investors, investment banks, professional sports leagues, consulting firms, and operating companies sharing their collective insights on the latest investment trends impacting single family offices.
Discussion topics included:
- Venture Capital in an Uncertain Environment: Uncovering Opportunities – VC investors and fundraisers are facing headwinds from sluggish IPO and M&A markets, elevated interest rates, robust public market activity, evolving domestic and geopolitical challenges, and the hangover from 2020 and 2021 VC FOMO. As evidence, VC funds are on pace to raise the lowest amount of capital since 2013, down more than 50% from 2023. That said, every distressed environment creates incredible opportunities, especially for VC funds with unique value propositions and family offices that can invest as limited partnerships and direct investors without the artificial constraints of many institutional investors. This panel explored the current VC landscape with a focus on identifying these opportunities and the strategic advantages that family offices possess to succeed in this environment. Moderated by Patrick J. McCurry.
- Market Trends in Healthcare Investing – Over 17% of the national GDP is spent on healthcare, and the sector is evolving rapidly due to technological advancements, an aging population, and emerging therapies. This panel discussed market trends, the regulatory landscape, and strategic investment opportunities for family offices in the healthcare sector. Moderated by Kate McDonald.
- Emerging Leagues, Emerging Opportunities: Strategic Investments in Professional Sports – As enterprise valuations of professional sports teams continue to dramatically increase, many family offices interested in control and minority investments in professional sports are turning to emerging sports leagues. These leagues offer not only an easier entry-level investment but also the excitement of getting in on the ground floor of fast-growing and exciting sports leagues. This panel shared insights on the current environment in the world of professional sports from a family office investor lens. Moderated by Thomas P. Conaghan.
- The War for Talent: Trends in Investment Team Executive Compensation – The need to structure competitive family office incentive compensation programs that align with the values and vision of the family clients is a growing focus for family offices. This panel covered the considerations a family office faces when creating incentive and deferred compensation plans for employees. Conversation included the philosophy of the incentive program; discretionary versus formula-based arrangements as long-term incentive arrangements to reward performance and foster retention; leveraged and non-leveraged co-investment opportunities; and the pros and cons of carried interest, phantom equity and profit sharing. Moderated by Thomas P. Ward.
- Cutting Through the Noise: Opportunities in AI Investing – Artificial intelligence (AI) is reshaping the economic landscape and has become a key investment theme for family offices. Investment opportunities in AI encompass both the emerging technologies and the ecosystems surrounding them. This panel reviewed the trajectory of AI development, the applications of cutting-edge AI models, the industries most likely to benefit from AI advancements, and how family offices can harness AI’s transformative potential while navigating the complexities of this rapidly evolving field. Moderated by Shawn C. Helms.
About Family Office Capital & Investment Strategies (FOCIS)
FOCIS is a multi-practice team and mindset within McDermott that draws on the experience of our private client, tax and transactions lawyers to provide creative and holistic solutions across all levels of a family wealth structure. By taking a comprehensive and multi-level approach, we aim to achieve enhanced economic returns through optimal planning for your family, returns that would otherwise be lost when working with external advisors with a narrower lens. Learn more.
