Investment Committee (IC)
An investment committee is the governance body responsible for approving allocations, enforcing policy constraints, and overseeing investment risk.
Definition
An investment committee (IC) is a formal decision-making body that approves investment actions within a defined governance framework. It sets guardrails around risk, mandate adherence, and accountability, particularly for large allocations or strategy changes. Allocator Context ICs are common across pensions, endowments, foundations, and larger family offices. They may include trustees, executives, external advisors, and CIO leadership. Meeting cadence and decision rules shape speed and predictability of approvals. Decision Authority IC authority is typically highest for new manager approvals, allocation increases, liquidity exceptions, and strategy shifts. CIO discretion often exists below predefined thresholds, with escalations required above them. Why It Matters for Fundraising Many fundraising processes fail because managers target the “right person” but ignore the approval path. Understanding IC cadence and thresholds determines realistic timelines and next steps. Key Takeaways ICs are the final approval layer for many allocators Cadence and thresholds dictate speed Governance structure matters more than titles Fundraising requires mapping the approval path