Investment Team Turnover
Investment team turnover is the departure or rotation of key professionals that can affect decision quality, continuity, and outcomes.
Definition
Definition Team turnover refers to changes in the investment team, especially senior decision-makers and key operators. In private markets, continuity matters because investment decisions play out over years. Turnover can disrupt sourcing networks, underwriting standards, portfolio monitoring, and value creation execution. Allocator Context Allocators evaluate whether performance was driven by a stable team and whether the platform has depth. They also look at incentives, succession planning, and whether departures reflect cultural or governance issues. For institutions, turnover is not just a risk—it can change the manager they believed they were underwriting. Decision Authority Material turnover often triggers monitoring escalation and can affect re-up decisions. Some funds have key person clauses that formally restrict activity when certain individuals leave or reduce involvement. Why It Matters for Fundraising Team stability is a trust driver. Managers should communicate changes early, explain decision continuity, and demonstrate that the process is institutionalized rather than dependent on one person. Key Takeaways Continuity matters in long-duration strategies Depth and succession planning reduce risk Turnover can change underwriting reality Transparent communication protects LP trust