Next-Generation (Next-Gen)
Next-gen refers to the successor generation of the family involved in governance, education, and future decision authority.
Definition
Definition “Next-gen” typically describes family members being prepared for increasing responsibility over wealth decisions. This can involve investment education, participation in governance forums, and gradual expansion of voting or approval rights. Allocator Context Next-gen involvement often changes risk appetite and time horizon, sometimes increasing interest in innovation or impact themes, and sometimes increasing risk control due to reputation concerns. It can also slow decision cycles if approvals become multi-stakeholder. Decision Authority Next-gen may start with advisory influence, progressing to shared or formal authority depending on governance structure. Why It Matters for Fundraising Managers building long-term relationships benefit from understanding who is “future power.” Trust built early can shape re-ups and future allocations. Key Takeaways Signals succession planning and governance evolution Can change preferences over time May add stakeholders to approvals Matters for multi-fund relationship building