Family Council

Definition

Definition A family council is a structured forum where family members coordinate on wealth-related priorities—governance rules, spending expectations, philanthropic direction, and succession topics. It is not always an “investment committee,” but it often shapes investment constraints indirectly by defining what the family wants the capital to do and what reputational or values boundaries exist. Allocator Context Family offices that operate across multiple generations often use a family council to reduce conflict and keep decision-making consistent. For external managers, the key point is that investment decisions may be influenced by family dynamics even when a CIO runs the portfolio. A “no” may reflect governance alignment, not strategy quality. Decision Authority A family council typically does not execute trades, but it can set guardrails (restricted sectors, liquidity comfort levels, headline risk tolerance) that the investment team must follow. Why It Matters for Fundraising Managers that ignore family governance often misread timelines and veto points. Understanding the council’s role helps you position the strategy in a way the family can support, not just the CIO. Key Takeaways Shapes guardrails even if it doesn’t pick managers More common in multi-generation families Reduces decision volatility when governance is mature Explains “non-financial” vetoes that appear late in the process