Family Offices: Gender Diversity, “Cold” Investors, and ESG

The Asset Management and Alternatives industry seen by many as an “old boys club”. However, most people on the inside broadly agree that there have been [relatively] big strides forward in gender equality. In marking International Women’s Day 2022, Capital+ spoke with Danielle Patterson from Family Office List. As the firm’s Co-Owner & Sales and Marketing Director, Danielle shared her professional perspective as a woman in these male-centric waters, along with some tips on how better connect with Family Offices. 

Q: What has been your experience as a female working professional in this male-dominated industry? 

It's been a journey in learning to overcome my own insecurities of being different and rather using my unique position as a "superpower". Change starts within ourselves. We have to change the perception that women can’t assume these types of positions & trust in our capabilities despite our being the minority. 

Q: Are you seeing a shift towards more gender diversity in Family Offices? 

It’s still a male-dominated sector. However, I am seeing a shift take place as families become more concerned with their social impact. More females are becoming involved within the sector as succession takes place and younger generations move into decision-making roles. The tremendous growth and rise of impact initiatives have brought families’ missions into the limelight. Influential female leaders like Liesel Pritzker Simmons from the Blue Haven Initiative, are paving the path as one of the first Family Offices created with impact investing as its mission and focus. 

Q: What advice do you have for women to thrive in male-dominated spaces? 

Being different can be advantageous if you learn to embrace it. It highlights your originality and authenticity and makes you stand out in a world full of conformity. Share your story with confidence. Being a minority will set you apart from the crowd. Embrace your unique position and viewpoints. 

Q: How do you cut through the noise to connect with Family Offices?  

It starts with alignment of interest & determining a value-add approach. Family Offices receive an abundant volume of solicitation, however, it's a necessary function of their identifying new deals. Be respectful of their time & understand where they are coming from. The sooner you can understand their investment objectives and clearly communicate a deal matching their preferences, the better the success rate for all parties involved.  

Q: What are suggested best practices to reaching out to “cold” investors?  

Do your research. Understand where they are coming from and the type of firm they are so you can communicate appropriately.  

For example, the old playbooks used for large institutional investors aren't going to make the same effect as a personalized human approach to a smaller Family Office that is looking out for the best interests of the immediate family. Be yourself, know their story, and then share yours as it is relevant to their world. People invest with people so get to know one another.  

Q: Can you speak about overselling ESG to investors i.e. concerns around greenwashing?  

For a die-hard environmentalist at heart, I love seeing all the attention ESG is getting. I remember when it first became a "buzzword" . Fast forward to today where greenwashing goes on, but Family Offices are smart enough to detect the real deal. They are successful business owners who have earned their fortunes through hard work, good decision-making & in many cases their vast network of peers who can help with due diligence.  

Q: Lastly, do you have any tips for a females in the Asset Management industry who are afraid to step outside her comfort zone? 

What’s helped me get where I am today is surrounding myself with people who can do things that I’m not good at. It’s about admitting your weaknesses and finding teammates who actually enjoy doing those tasks. Then you need to give them the tools to do those things well. Don’t overmanage people. Trust them. Communicate at all times. 

Also, don’t be afraid that people won’t respond to who you truly are. Just be yourself, be honest, and work hard. Your path will come.