How to Choose an Advisor to Turn Around Family Office Private Investments

Intro

Selecting the right advisor is one of the most important decisions a family office makes when addressing underperforming private assets. This guide lists the capabilities to prioritize, questions to ask during evaluation, and red flags that should prompt caution.

Core capabilities to look for

An effective turnaround advisor blends investment structuring, operational know how, and stakeholder management. Look for evidence in these areas.

Must have capabilities

• Track record of working with family offices or similar principals
• Operational experience or access to sector specialists
• Credible capital solutions, including bridges, restructurings, and minority recap tools
• Governance and board level experience to implement oversight quickly
• Ability to provide anonymized case examples and measurable outcomes

Preferable attributes

• Small, senior led team you can reach directly
• Clear fee structures aligned with outcomes
• Public content or thought leadership that demonstrates methodology

Questions to ask any potential advisor

A short set of focused questions will reveal how the advisor approaches turns and how transparent they will be.

Diagnostic questions

• Describe a similar engagement, outcome, and your role, anonymized if needed
• How do you prioritize between operational fixes and capital changes
• What is your typical timeline and cost budgeting approach
• Who on the team will lead the effort and what are their credentials
• How do you manage co investor or lender relationships in sensitive situations

Ask for a sample engagement plan and a list of references who can confirm process and conduct.

Fee structures and alignment

Advisors use a mix of hourly fees, fixed retainers, and success fees. Aim for alignment with outcomes while keeping urgency and governance intact.

Fee models to consider

• Fixed fee for diagnostic, success fee for outcome, capped monthly retainer for execution
• Equity or carry as partial alignment for longer term recoveries
• Clear caps on expense reimbursement and third party vendor spend

Red flags and final checklist

Watch for these warning signs during evaluation.

Red flags

• No anonymized case studies or references
• Overly theoretical proposals without concrete milestones
• Lack of clarity on fees or insistence on large up front payments
• No plan for stakeholder communications or lender engagement

Final checklist

• Confirm team, timeline, deliverables, and exit options in writing
• Ask for a short pilot diagnostic before committing to full execution
• Verify references and request a sample decision memo

If you want a short list of vetted questions customized to your holding, Maya Capital Partners can prepare a tailored advisor evaluation template and run a confidential capability screen.