Family Office Mandate
A family office mandate defines what the family is willing to invest in, and what role each allocation should play.
Definition
Definition A family office mandate is the set of boundaries and objectives that guide capital allocation: target return, acceptable volatility, liquidity needs, preferred asset classes, geography, sector restrictions, and concentration caps. Mandates can be written (formal IPS) or unwritten (pattern-based rules shaped by the principal). Allocator Context Mandates at family offices are often more personalized than institutions. They may reflect a founder’s operating background (real estate, energy, tech), a preference for control and tangible assets, or a strong aversion to reputational risk. Many family offices also define “must-have” features like co-invest access, transparency, and direct relationships with GPs. Decision Authority The mandate is typically set by the principal with the CIO executing within it. Changes to mandate—new sectors, more illiquidity, higher risk—often require principal-level approval. Why It Matters for Fundraising Pitching without mandate fit wastes time. Managers who quickly map their strategy to a family’s mandate—and explicitly state what they don’t do—build trust and shorten the path to a decision. Key Takeaways Mandates can be formal or implicit Liquidity and concentration are usually binding constraints Co-invest and transparency often matter more than brand names Clear mandate fit drives faster conversion