Why Family Offices Are Building In-House Capital Formation Teams
~850 words·5 min read·Tag: @Sirius Private Office
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In March 2025, CFA Institute published research on Middle East family offices with one line that caught my attention: "Hiring aggressively to boost their capabilities." That's not normal language for a financial research report.
1. The Economics Finally Make Sense
❌ Old Model (Outsourced)
$500M AUM family office
Hire placement agent at 2-3%
Raise $100M → pay $2-3M fees
✅ New Model (In-House)
Hire 2-3 professionals at $200-300K
Annual cost: $600-900K
Raise $100M → $0 external fees
ROI breakeven: after the first $30-40M raised. Family offices hitting $500M+ AUM are crossing this threshold. The math flipped somewhere between 2023-2024.
Sirius Private Office (Dubai) is hiring for "Director, Capital Formation." That's not a fund admin position. That's building internal capability to raise capital without external agents.
2. Family Offices Are Going Direct
The shift: from passive LP allocations to direct investments, co-investments alongside PE/VC funds, and secondaries. CFA Institute (Mar 2025): "More family offices are allocating capital to private equity funds, direct investments, and venture capital opportunities."
When you're doing directs at scale, you need investor relations, deal flow sourcing, and capital raising for SPVs. That's not something you outsource. That's an in-house function.
3. The Institutionalization Wave
Middle East family offices maturing from "family manages everything" to professional management teams. From "single LP in funds" to multi-family office structures. From "invest in friends' deals" to institutional due diligence.
CFA Institute: "Adopting more institutionalized governance." In practice: compliance teams, investment committees, IR reporting, and capital formation done properly.
4. The Consultant-to-FO Pipeline
The National (Sept 2025): "People in strategy consulting are being hired by family offices from firms like Bain, McKinsey, and BCG." Why? They speak institutional investor language, build the decks LPs expect, understand governance, and can set up processes from zero.
If you're doing IR in NY/London and open to Dubai, family offices want you. The supply/demand imbalance is real.
5. The "Raise External Capital" Mandate
Family offices realizing they can raise from other HNWIs, structure as multi-family offices, charge 1-1.5% management fees, and build recurring revenue. The shift: from "we manage our family's money" to "we manage multiple families' money."
The National: "Those dealing with raising external capital are also sought after." That's a capital formation professional — not an analyst, not an advisor — someone who's DONE fundraising at institutional scale.
6. Why Dubai Specifically
Dubai Family Office Clustering
0%
Personal income tax
10yr
Golden visa
100+
FOs at ME Summit
Tax migration, golden visas, DIFC infrastructure, $500M+ families clustering in one city, and network effects compounding. When 100+ FOs are in one city and all hiring similar roles, talent competition intensifies.
7. What This Means for You
Roles emerging: Director of Capital Formation, Head of IR, VP External Capital Raising, MD Family Office Partnerships. Compensation: $200-400K base (Dubai, tax-free) plus carry/bonuses tied to capital raised. The trade-off: smaller teams, less structure — but you're building from scratch with direct ROI impact.
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Why Family Offices Are Building In-House Capital Formation Teams (And Hiring Aggressively)
In March 2025, CFA Institute published research on Middle East family offices with one line that caught my attention: "Hiring aggressively to boost their capabilities."
That's not normal language for a financial research report. "Aggressively" means something structural changed.
Family offices in Dubai are no longer just allocating capital to external funds. They're building in-house capital formation teams — hiring people from PE/VC firms, placement agents, consulting firms, and investment banks.
I did IR for tech founders in Dubai, worked with family offices as allocators. Here's why FOs are moving capital formation in-house.
1. The Economics Flipped
Old model: Hire placement agent at 2-3%. Raise $100M → pay $2-3M in fees.
New model: Hire 2-3 professionals at $200-300K each. Annual cost: $600-900K. Raise $100M → $0 external fees.
ROI breakeven: first $30-40M raised. The math changed in 2023-2024.
Sirius Private Office (Dubai) is hiring for "Director, Capital Formation." That's building internal capability to raise capital without external agents.
2. Going Direct Requires IR Capability
Family offices shifting from passive LP allocations to direct investments, co-investments, and secondaries. When you're doing directs at scale, you need investor relations, deal flow, and capital raising. That's an in-house function.
3. The Institutionalization Wave
CFA Institute: "Adopting more institutionalized governance." In practice: compliance, investment committees, IR reporting, capital formation done properly. They're hiring people who've seen "good IR" at institutional funds.
4. The Consultant-to-FO Pipeline
The National (Sept 2025): Strategy consultants from Bain, McKinsey, and BCG are being hired by family offices. They speak LP language, build institutional-grade processes, and can set up from zero.
5. Raising External Capital
Family offices realizing they can raise from other HNWIs, structure as multi-family offices, and charge management fees. "Those dealing with raising external capital are also sought after."
6. Why Dubai
0% personal income tax. 10-year golden visas. DIFC regulatory infrastructure. 100+ family offices clustering in one city. When they're all professionalizing simultaneously, hiring waves follow.
7. What This Means
Roles: Director of Capital Formation, Head of IR, VP External Capital Raising.
Comp: $200-400K base (tax-free) + carry.
Trade-off: You're building from scratch. Higher impact, less structure.
If you're in IR/fundraising and not exploring Dubai family offices, you're leaving options on the table.
DM me — I'm exploring Director-level capital formation roles at Dubai family offices.
#FamilyOffice #Dubai #CapitalFormation #InvestorRelations #PrivateWealth #DIFC #Hiring
Headline Options
Why Family Offices Are Building In-House Capital Formation Teams
The $500M Question: Why Family Offices Stopped Outsourcing Fundraising
Why Dubai Family Offices Are Poaching IR Talent from PE Firms
Family Offices Are Hiring Ex-Consultants for Capital Formation. Here's Why.
From Outsourced to In-House: Why Capital Formation Moved Inside Family Offices
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Thought Leadership: "Should family offices keep capital formation in-house or outsource? Drop your take."
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