Family Office Decision Velocity
The speed at which family offices move from introduction to commitment, typically faster than institutions (weeks to months vs 6-18 months) due to fewer approval layers.
Understanding velocity patterns helps set realistic fundraising timelines and prevents mistaking "fast meeting" for "fast decision"—principals can pause indefinitely despite initial speed.
Expanded Definition
Decision velocity varies by FO maturity and structure. Direct principal models can commit in days or weeks when conviction is high. Committee-driven FOs move in 1-3 months. Advisor-mediated structures take 2-6 months due to coordination complexity. Despite potential for speed, FOs can also pause indefinitely—principal availability, family priorities, or governance discussions can freeze decisions.
Velocity also varies by allocation type: smaller checks (<$5M) often move faster through delegated authority; larger allocations require principal or committee approval regardless of urgency. Strategic or passion-aligned opportunities accelerate; purely financial allocations follow normal pace.
Signals & Evidence
Velocity pattern indicators:
- Fast decision structure: Principal-led, minimal gatekeepers, delegated authority for smaller checks
- Moderate velocity: CIO or IC exists but meets frequently; clear decision criteria; responsive communication
- Slow decision structure: Committee-only, infrequent IC meetings, multiple approval layers, advisor coordination required
- Acceleration signals: Upcoming liquidity event, declared allocation target, team capacity expansion
- Deceleration signals: Principal travel, family transitions, competing priorities, governance discussions
Decision Framework
- Velocity assessment: Evaluate structure (principal vs committee), delegation thresholds, IC meeting frequency before setting expectations
- Acceleration tactics: Warm intros, principal passion alignment, co-investor social proof, allocation scarcity can compress timelines
- Patience required: Even fast-moving FOs can pause indefinitely; maintain relationship during dormant periods
Common Misconceptions
"FOs always move faster than institutions" → Committee-driven FOs can be as slow as pensions; structure matters more than FO label. "Fast first meeting = fast decision" → Principals often take exploratory meetings quickly but still deliberate extensively before committing. "Velocity is constant" → Changes dramatically based on check size, strategic fit, principal availability, and competing priorities.
Key Takeaways
- Decision velocity depends on structure (principal-led = fastest, committee-driven = slower, advisor-mediated = slowest coordination)
- Fast initial engagement doesn't guarantee fast commitment—principals can pause indefinitely despite early enthusiasm
- Monitor acceleration/deceleration signals (liquidity events, team changes, family priorities) to time follow-ups appropriately