Principal
The principal is the individual or family member whose wealth the family office manages and who often holds final decision authority.
Definition
Definition The principal is the wealth creator or controlling family decision-maker behind the family office. In many family offices, the principal’s preferences define the risk profile, investment style, and governance approach. Even when there is a CIO and professional team, the principal often retains veto power on major allocations, illiquid commitments, or reputationally sensitive deals. Allocator Context From a fundraising perspective, principals can be decisive and fast, but also highly preference-driven. They may care about trust, mission, and relationships as much as technical performance. Some principals want direct access to GPs and portfolio companies; others delegate fully to a CIO. Decision Authority Often the final stop. A CIO may run diligence, but approvals can require principal comfort, especially for first-time relationships or larger ticket sizes. Why It Matters for Fundraising Managers should know whether they are selling to a CIO process or a principal relationship. Confusing the two leads to wrong materials, wrong cadence, and slow or stalled decisions. Key Takeaways Principal influence is often the real gate Preferences matter: liquidity, control, reputation Relationship quality can be decisive Know whether the process is delegated or principal-led