Family Governance
Family governance is the framework for decision-making, roles, and conflict resolution across family members and generations.
Definition
Definition Family governance includes the rules and structures that determine who makes decisions, how disagreements are resolved, and how the family’s financial objectives are maintained over time. This can include family councils, voting rules, investment charters, and policies on liquidity, spending, and risk. Allocator Context Governance maturity impacts investment behavior. Strong governance improves consistency, reduces reactive decisions, and supports long-term allocation plans. Weak governance often results in sudden shifts—risk-on to risk-off—driven by family dynamics rather than market conditions. Decision Authority Governance determines who can say yes and who can veto. For managers, the key is understanding whether approvals come from one person or a structured group. Why It Matters for Fundraising Funds that require multi-year commitment often lose momentum when governance is unclear. Managers who respect governance constraints and provide decision-ready materials reduce internal friction. Key Takeaways Governance maturity affects consistency and speed Weak governance increases unpredictable allocation shifts Knowing veto points matters more than knowing titles Long-duration strategies require governance readiness