Family Office CIO

A Family Office CIO is the investment lead responsible for portfolio construction, manager selection, and risk oversight. In some SFOs the CIO is the ultimate decision-maker; in others, the CIO is a senior operator who must secure principal approval, especially for larger commitments or illiquid exposure.

From a GP perspective, “CIO” is not a guarantee of authority. The key is mapping who controls the decision at each ticket size and structure.

How allocators define CIO authority drivers

Allocators evaluate a CIO’s practical authority through:

• Signature authority: who signs the subscription and wires
• Ticket-size thresholds: what the CIO can approve independently
• Mandate ownership: whether the CIO owns IPS and pacing rules
• Committee dynamics: whether the CIO leads votes or only recommends
• Access to principals: frequency, trust, and alignment
• Portfolio visibility: whether the CIO sees full family balance sheet
• Operational control: legal, tax, and execution resources
• Track record: repeat manager commitments and exits

Allocator framing:
“Is the CIO a true allocator — or an investment advisor inside a family governance structure?”

Where CIO authority matters most

• re-ups and manager retention decisions
• co-invest allocations requiring quick turnaround
• concentrated direct investments
• portfolio risk reductions during drawdowns

How CIO structure changes outcomes

High-authority CIO model:

• faster decisions and cleaner communication
• consistent mandate application
• stronger manager relationships and re-up rates

Low-authority CIO model:

• longer cycles and higher reversal risk
• “two-step” diligence (CIO then family)
• higher probability of late-stage no’s

What slows decision-making

• unclear ticket-size authority
• principals wanting involvement without structured cadence
• CIO not owning pacing or liquidity planning
• execution bottlenecks (legal/tax capacity)

Common misconceptions

• “CIO equals decision-maker.” → not always; threshold-based authority is common.
• “More experience means more authority.” → trust with principals matters more.
• “CIOs want every deal.” → most want mandate-fit, not volume.

Key questions during diligence

• What can you approve independently, and what requires principal sign-off?
• What is the core mandate (asset class, geo, ticket, structure)?
• How do you think about pacing and liquidity over time?
• What would make you re-up vs pass after a first commitment?
• Who needs to be involved before we invest time into full diligence?