Free private markets document template
Family Office Investment Policy Statement Template
Create a family office private markets policy covering allocation, liquidity, direct investments, governance, concentration and family objectives.
01
Purpose & scope
This policy governs private markets investing for Family Office Investment Team and establishes a consistent framework for external funds, direct investments, co-investments and secondaries.
02
Family capital context
The family oversees $1.1bn of investable assets with a Multi-generational orientation. The program should balance compounding, family control, liquidity and intergenerational stewardship.
03
Investment objectives
The private markets program targets a 8%-10% net nominal return outcome over a Multi-generational horizon, with emphasis on durable value creation and access to differentiated managers and businesses.
04
Spending & liquidity
Annual family spending is $22m plus taxes and family distributions. Maintain a liquidity reserve equal to Five years of family spending, taxes and expected net capital calls before making incremental illiquid commitments.
05
Allocation policy
Private markets has a 30% target and a 25%-35% policy range. Evaluate exposure using NAV, unfunded commitments and direct investment reserves.
06
Portfolio construction
Permitted strategies are buyout, venture, growth, private credit, real assets, secondaries and co-investments. Diversify across managers, vintages, geographies, sectors and investment structures.
07
Direct & co-investments
Direct and co-investments require sector expertise, governance rights and a documented exit path
08
Family governance
Family Investment Committee approves policy and direct investments; CIO approves funds within pacing budget
09
Risk limits
The family will apply the following concentration controls: 5% of total family assets per direct investment and 10% per external manager. Exceptions require explicit Investment Committee documentation.
10
Values & restrictions
Investment decisions should reflect Long-term ownership, responsible governance and avoidance of tobacco and predatory lending. Values-based restrictions must be documented without compromising fiduciary clarity.
11
Monitoring
The program will follow Quarterly monitoring and annual family policy approval, including allocation, liquidity, performance, concentration and governance reporting.