Family office co-investment: who can introduce and who must approve
A family office holding a minority stake can introduce a portfolio company to SourceX, but only the company's authorized officers can agree to a data license. The usual route is the lead sponsor first, then the board, then the CEO or CFO, with nothing shared until a signed agreement.
Can a minority co-investor make the introduction?
Yes, a minority co-investor can make an introduction, but it cannot authorize a data license. Only the company, acting through an owner, CEO, CFO or other authorized representative, can agree to license its records, so the minority investor's job is to reach that person.
The concern behind the question is fair. A family office that took a minority position in a club deal or co-investment has information rights and perhaps a board observer seat, not control. Pushing a licensing idea past management can damage the relationship, and it can create legal exposure if the investor tries to speak for the company.
What is actually true
- The company owns its records. Shareholders, including large ones, do not.
- A license needs the company's authorized signature, plus agreed price and terms. Nothing is binding before that.
- Minority protections, such as consent rights over material contracts or related-party dealings, vary by shareholder agreement. Your documents decide, not general rules. This is general information, not legal, tax or financial advice.
- An introduction is not a commitment. It starts a qualification conversation about size, history, data breadth and rights.
- The investor never handles records. Partners provide basic fit information only.
Who can authorize what in a co-investment?
| Role | Can introduce the idea | Can authorize a license | Typical next step |
|---|---|---|---|
| Minority family office | Yes, to management or the lead sponsor | No | Raise it with the lead sponsor or CEO |
| Lead sponsor or control owner | Yes | Usually only through the company's board or officers | Ask management to screen it |
| Board observer | Yes, as a suggestion | No | Put it on a board agenda through the chair |
| CEO or CFO | Yes | Often, subject to the company's own approvals | Run a preliminary fit screen |
| Co-investment vehicle manager | Yes | No, unless also an officer | Coordinate with the lead before contact |
The three-door route
Use three doors in order. Skip a door only if it does not exist.
- The lead sponsor. Tell the control owner you would like to float the idea, and ask how they prefer it handled. The lead sponsor's operating team is often the right first contact, as described on the page for private equity operating partners.
- The board or investor update. Raise it as an agenda item or a question in the quarterly package, not as a request for a decision.
- The authorized officer. Once the lead agrees, introduce the company to SourceX, or give the CEO or CFO the referral link so the company can apply itself.
Check your co-investment agreement before step three. Some agreements restrict contact with management or require lead consent.
What to say
Family office versus private equity buyer
How a family office behaves differs from a fund with a fixed horizon, which changes how fast a decision is made. The comparison of a family office and a private equity buyer covers what changes for the business. If the company is later sold to a permanent owner, see selling to a holding company.
Records, entities and retention come first
A minority investor can help by asking two questions that cost nothing. Has anyone paused deletion during integration, and which legal entity holds the records? The answers are explained in the guides on data retention after an acquisition and legal entity rationalization.
How rewards work for an investor-partner
Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 cumulative per referred company. Rewards become payable only after the buyer pays and SourceX receives its fee, and none is guaranteed. The reward is a share of SourceX's fee and is never deducted from what the company receives. A family office should check its own governance documents, any conflict policy and its co-investment agreement before accepting a fee connected to a portfolio company, and review the program terms.
When to leave it alone
- The shareholder agreement bars the investor from contacting management directly.
- The lead sponsor says no.
- The company never had 50+ full-time employees at peak (contractors excluded), or the records mainly belong to its clients.
Next step
Run the company through the company fit checker, compare it with the who qualifies baseline, and if the lead sponsor agrees, register as a partner.
- Step 1Share your linkSend your personal link to a company you know.
- Step 2Company appliesThe company applies itself at /apply.
- Step 3Buyer selects and paysThe buyer selects and pays for the data and SourceX receives its fee.
- Step 4You get your rewardYour share of SourceX fees becomes payable.
Common questions
Do I need the majority owner's permission to make an introduction?
Check your shareholder and co-investment agreements. Some restrict contact with management or require lead consent, others do not. Even without a restriction, informing the lead sponsor first protects the relationship and avoids surprises. The company, not the investor, will decide whether to proceed.
Can a minority investor block a license?
Only if the shareholder agreement gives it a veto or consent right over that kind of contract, such as material or related-party agreements. Many minority holders have no such right. Counsel should read the documents. This is general information, not legal advice.
Does the introduction commit the company to anything?
No. An introduction starts a qualification conversation. Nothing is binding until the company agrees price and terms and signs, and the company keeps ownership because data is licensed, not sold. It can stop at any point before signing.
What information can I share with SourceX as an investor?
Basic fit information only: the company's name, rough size, years of operations, industry and an authorized contact. You never export, upload or describe confidential records, and you should avoid sharing anything you hold under an information-rights confidentiality clause.
Can the company apply on its own instead of through me?
Yes. A partner's referral link sends the company to the application page with the referral code attached, so the company applies itself while the partner's credit is preserved. Credit goes to the first valid referrer whose introduction leads to a verified application within the attribution window.
Related pages
- Referral opportunities for private equity operating partners
- Family office or private equity buyer: what changes for your business
- Selling your business to a holding company: what happens to your records
- How to harmonize data retention policies after an acquisition
- Legal entity rationalization: which entity can license which records
- Check Company Fit for Data Licensing
Free resources
- IRR calculator — Internal rate of return on annual cash flows.
- Business valuation calculator — Enterprise and equity value from EBITDA, your multiple, cash and debt.
- Portfolio data opportunity scanner — Screen several companies in one session.
- All free tools · MCP resource center
By SourceX Partnerships Team · Published 2026-10-09 · Updated 2026-10-09
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