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Family Offices are private wealth management advisory firms serving very wealthy families, offering a wide range of personalized services from investment management to philanthropic planning. With approximately $10 trillion in global assets, Family Offices are a growing source of patient capital and strategic guidance for entrepreneurs.
A quick search for Ron Diamond will reveal TEDx talkskeynote speeches and podcast episodes where he discusses the evolution of Family Offices, the importance of trust and integrity, and strategic philanthropy.
Having worked closely with Ron Diamond, I have gained unique insight into the man behind the thought leadership.
His story covers a range of experiences, from his early influences and corporate beginnings to his influential mentorships and ongoing commitment to education and community engagement.
1. Balancing legacy with humility
Ron was born and raised in Chicago, where his father and grandfather served as chairmen of prominent financial institutions such as Heller Financial and American National Bank.
While his father and grandfather were very successful in banking, his father prioritize family time despite his demanding career. He dedicated his weekends to his family, demonstrating the importance of balancing work with your personal life and family.
For Ron, the ability to stay humble and keeping one's ego in check is an invaluable asset regardless of industry. The most important lesson he learned from his father was to work hard and take work seriously while remaining humble.
Related: Don't let your ego make you a controlling leader. Here's how.
2. Learning from failure
Ron entered the finance industry right out of college. He accepted an offer to join Drexel Burnham in his junior year at Northwestern University. It was the early to mid 80's and Drexel Burnham was the most profitable firm on Wall Street.
At the same time, Ron's father had just published his first book, “Leverage purchases.” The publication explored the emerging field of what is now known as private equity. “My father wanted me to meet John Canning, who was starting Madison Dearborn — now a top private equity firm globally,” Ron recalled. Despite the this opportunity, Ron chose Drexel, attracted by its prestige and the chance to work under the legendary Michael Milken.
The firm faced a catastrophic collapse just two years after Ron joined Drexel Burnham. Ron had a front row seat, witnessing first hand the decline of what was once a great institution and watching seasoned professionals lose their jobs overnight. This event had a profound effect on Ron's perspective on impermanence and infinity even from the most highly regarded financial firms. From that moment on, Ron decided to put his loyalty to people over corporations. Any firm may collapse, but personal relationships will endure.
Related: The F-Word: Why Failure Is an Indispensable Key to Success
3. Impactful Mentoring: Insights from Michael Milken
Milken's visionary approach to business and philanthropy, focusing on personal connections over simple transactions, left a lasting impression on Ron, whom he saw as brilliant and thoughtful.
“I would just listen intently in meetings, soaking up his knowledge like a sponge, recognizing his precocious brilliance,” Ron recalls.
This deep mentorship shaped Ron's professional outlook, emphasizing the importance of loyalty and deep connections, values that he has carried forward in his career.
Years later, Milken's strategic approach extended to him philanthropic effortsparticularly in his innovative response to his diagnosis of prostate cancer. Instead of following traditional treatment paths, Milken applied a venture capital mentality to medical research, strategically investing in various initiatives to maximize impact.
Inspired by Milken's model, Ron embraced a similar approach in his ventures, focusing on strategic impact investing.
4. The business of relationships
Ron's next move was to found Pinnacle Capital. With $3 million raised from friends and family, he quickly grew the firm's assets to $250 million in the second year. This growth was driven by the continued performance of the S&P 500, gaining the confidence and satisfaction of its investors.
In the 1990s, the term “Family Office” was not yet common; Ron's early investors were known simply as “rich people”. This group would evolve into what is now known as Family Office – private wealth management advisory firms serving very wealthy families. Ron's transition into the Family Office space was marked by his ability to create strong, relationships based on trust with his clients, aligning with the ethics of personal connection and long-term strategic engagement of the Family Office.
Through Pinnacle Capital, Ron not only expanded his influence in the financial sector, but also laid a foundation for his future initiatives.
Focus on building relationships based on trust and providing personalized financial management. By prioritizing personal connections and long-term engagement, you can achieve significant growth and establish yourself as a trusted advisor in your industry.
Related: How your entrepreneurial spirit can lead the way in a crisis
5. Family Offices: Where Prosperity Meets Purpose
Ron's approach evolved as he realized that Family Offices prioritize trust and integrity over sheer financial acumen. “With Family Offices, the first thing they want to know is if they can trust me, if I'm a good person. Financial models and strategies come later,” he explained. This shift from transactional interactions to relationship-driven interactions marked an important transformation in his career.
This marked a shift from transactional interactions to relationship-driven interactions, in stark contrast to institutional investors, who prioritized financial history data. After selling Pinnacle Capital, Ron founded Diamond Wealth.
He drew parallels between his resources and the ability to tackle broader societal challenges. This perspective was reinforced by observing influential figures such as Michael Milken and Bill Gates, who used their resources to tackle large-scale challenges through innovative and targeted impact investing.
Related: 5 Myths About What It Takes to Become a Rich Franchise
As an active keynote speaker and participant at Family Office conferences around the world, Ron continues to share his knowledge and experiences. Notably, his TEDx Talk on Family Offices has further cemented his role as an industry thought leader. In addition, the Family Office World podcast and newsletter provide ongoing insights and updates, fostering ongoing learning and engagement within the community.
Ron's latest venture, Family Office World, was inspired after a key conference at Stanford University in 2019. Ron explains how the success of this event highlighted a widespread demand for knowledge sharing in an industry often burdened by siled information and inefficiency.
Next Webinar: Work with Family Offices to Raise Capital and Grow Your Business
If you're looking to learn more about how Family Offices work and learn directly from industry leaders, don't miss the upcoming Entrepreneur Workshop on Wednesday, October 30th at 2pm ET.
Speakers such as Ron Diamond, Eric Becker, Pete Kadens and Mike Gamson will share insights on raising capital, creating strategic connections and driving business growth through Family Offices.