Family Office Check Size Range
The typical minimum and maximum investment amounts a family office commits to a single fund or direct deal.
Check size determines fund-FO fit; pursuing FOs with $1M-$5M range for a $50M+ minimum fund wastes time and damages relationships.
Expanded Definition
Check size is influenced by: total AUM (typically 1-5% per allocation), diversification policy (concentration limits), strategy conviction (higher conviction = larger checks), and capacity constraints (staff bandwidth for monitoring). Typical ranges: $1M-$10M (smaller FOs, $100M-$500M AUM), $5M-$50M (mid-size, $500M-$2B AUM), $25M-$150M+ (large, $2B+ AUM).
Check size often varies by: investment type (direct investments may be larger than fund commitments), sector expertise (larger checks in familiar sectors), relationships (anchor FOs may commit more), and vintage diversification (pacing may limit single check size).
Signals & Evidence
Check size indicators:
- Historical commitments: Observable fund investments, direct deal sizes, publicly disclosed allocations
- AUM-based estimation: Apply 1-5% rule to estimated FO AUM for rough range
- Portfolio concentration: Number of holdings indicates diversification approach; fewer holdings = potentially larger checks
- Team capacity: Larger investment teams can monitor more positions, enabling smaller checks; lean teams favor concentration
- Strategic allocations: Larger checks to passion areas, family business synergies, or strategic relationships
Decision Framework
- Qualification: Estimate FO check size from AUM, historical allocations, and concentration policy before outreach
- Fund sizing alignment: Ensure fund minimum aligns with FO typical check; $10M minimum fund with $2M max FO check = poor fit
- Flexibility zones: Some FOs flex check size for strategic relationships, co-investment opportunities, or conviction situations
Common Misconceptions
"Bigger AUM = bigger checks always" → Some large FOs maintain diversification through many small positions; size ≠ concentration. "Check size is fixed" → Varies by conviction, strategic fit, relationship strength, and vintage pacing. "Minimum always excludes smaller FOs" → Some smaller FOs syndicate or co-invest to reach minimums for compelling opportunities.
Key Takeaways
- Estimate check size using AUM (1-5% rule), historical allocations, and portfolio concentration before qualification
- Check size varies by investment type, conviction, relationships—don't exclude FOs at edges of range for strategic opportunities
- Fund minimum must align with FO check size range; forcing undersized commitments damages relationships