A Growing Number of Women Take the Helm of Family Offices

Elizabeth Lilly, a seasoned investor, started her own asset management firm in 2017, a dream she had been working towards for over three decades. However, she didn’t get to run it for long. Less than two years later, she was offered a chief investment officer position by one of her clients, the Pohlad family, owners of the Minnesota Twins. This opportunity was too good to pass up, and Lilly decided to broaden her horizons.

A Growing Trend of Female CIOs

Lilly is one of a growing number of women taking the helm of prominent family offices, the private investment arms of wealthy families. Last summer, James Dyson appointed Jane Simpson as chief investment officer of his family office, Weybourne. In 2022, billionaires Michael Dell and Sergey Brin named Alisa Mall and Marie Young, respectively, as CIOs of their family offices.

Why Women Thrive in Family Offices

Lilly attributes the growing number of female CIOs to the fact that women are generally more conservative in their financial decision-making. She notes that family offices have patient capital, deploying funds only when the right opportunities arise and measuring performance in years, not quarters. “I think it’s a matter of temperament, maybe,” she said. “Women investors, if you look at all the studies, are more even-keeled, and their investment decisions are less impulsive.”

The Benefits of a Female Perspective

According to a survey by Botoff Consulting, women hold 29% of executive positions in family offices, greater than that of corporate America and finance sectors like private equity. Four female CIOs who spoke with CNBC said that their tight-knit networks make up for what the space lacks in numbers.

Collaborative Environment

Margo Doyle, CIO of S-Cubed Capital, is part of a WhatsApp group for female CIOs and hosts dinners and cocktail events for other family offices in the San Francisco Bay Area. Kristin Gilbertson, CIO of Len Blavatnik’s Access Industries, described the family office industry as collegial. “When you’re allocating to external managers, it’s a bit of a team sport,” she said. “We share references, we share experiences, we leverage each other’s expertise.”

Conclusion

The growing number of women taking the helm of family offices is a positive trend, driven by their unique perspective and conservative approach to financial decision-making. As the industry continues to evolve, it will be interesting to see how these women leaders shape the future of family office investing.

FAQs

Q: What is a family office?
A: A family office is the private investment arm of a wealthy family, responsible for managing their wealth and investments.

Q: What is a CIO (Chief Investment Officer)?
A: A CIO is the highest-ranking executive responsible for overseeing a family office’s investment strategies and decisions.

Q: What are some characteristics of female CIOs in family offices?
A: According to Elizabeth Lilly, female CIOs tend to be more conservative in their financial decision-making and have a more even-keeled approach to investing.