Family Office Investment Committee
A family office investment committee is the decision group that approves investments and sets risk boundaries for the family’s capital.
Definition
Definition A family office investment committee (IC) is the formal or informal body that evaluates and approves investments on behalf of the family. Depending on the family, the IC may include the principal, family members, the CIO, external advisors, and sometimes trusted operating executives. The IC’s role is to define acceptable risk, approve allocations, enforce concentration limits, and align investing decisions with the family’s long-term goals. Allocator Context Unlike institutional ICs, family office committees vary widely in structure. Some operate with institutional discipline (agenda, minutes, policy documents), while others are relationship-driven with fewer formal controls. Decision-making may incorporate non-financial considerations such as values, reputational risk, and legacy goals. Timelines can be faster than institutions, but approvals can also be unpredictable when decisions are principal-driven. Decision Authority Authority typically sits with the principal or a small group around the principal. The CIO or advisor may recommend, but final approval often depends on trust, perceived downside risk, and how clearly the investment fits the family’s stated priorities. Why It Matters for Fundraising Managers raise capital faster when they understand who truly decides and what “approval” looks like. For family offices, the right memo isn’t always the longest one—it’s the one that makes risk and fit obvious to the person who owns the decision. Key Takeaways Family office ICs range from institutional to relationship-led Principal influence often dominates governance Reputational and values alignment can be as important as returns Fundraising improves when decision authority is mapped correctly