Decision Authority
Decision authority is who can approve, who can veto, and what can be decided without escalation.
Definition
Definition Decision authority describes the distribution of power inside a family office investment process. It includes who has final approval rights, who can block progress, and which decisions are delegated versus escalated. Context In family offices, decision authority may be principal-centric even when a CIO exists. Delegation varies by family culture, governance maturity, and risk tolerance. Authority can also be situational: a CIO may have discretion within a sleeve, while the principal retains control for illiquid or reputationally sensitive investments. Understanding authority requires more than org charts—it requires mapping what actually happens. Why It Matters These distinctions drive fundraising success. If you don’t understand authority, you waste time with the wrong stakeholders or push for a commitment that cannot be approved under the current delegation model. Key Takeaways Authority is about real approval power, not titles Delegation differs by family and investment type Veto points can be informal but decisive Understanding authority improves routing and timelines