Family Charter

Definition

Definition A family charter is a practical governance document describing roles, decision rules, investment priorities, risk boundaries, and sometimes dispute resolution. Unlike fund documents, it’s internal—but it often dictates how the family office behaves over cycles and how much discretion the CIO truly has. Allocator Context Not every family has a charter. When one exists, it usually signals higher governance maturity and more consistent decision-making. It also often clarifies what matters: preservation vs growth, liquidity needs, acceptable exposures, and reputational priorities. Decision Authority A charter doesn’t replace the principal’s authority, but it often becomes the reference point for approvals—especially when multiple family members are involved. Why It Matters for Fundraising If the family runs on a charter, you win by mapping clearly to it: role in portfolio, liquidity reality, reputational exposure, and time horizon. You lose by treating the family like an institutional allocator with generic materials. Key Takeaways Signals mature governance and consistent constraints Clarifies discretion vs veto structure Useful for positioning and expectation-setting Reduces “surprise” late-stage objections