Women Pioneering the Role of CIOs in Family Offices

The investment landscape for family offices is evolving, as evidenced by an increasing number of women stepping into leadership positions, particularly as Chief Investment Officers (CIOs). Elizabeth Lilly, who established her own asset management firm in 2017, exemplifies this trend. With a long-held aspiration to create her firm, Lilly drew upon experience gained over 30 years in the industry, including invaluable lessons learned from renowned investors.

Transitioning to a Family Office

In just a short time after founding her firm, Lilly received a compelling offer from the Pohlad family, known for owning Major League Baseball’s Minnesota Twins. They sought a CIO to manage their diverse investment portfolio that includes both public equities and investments in burgeoning sectors like health tech and manufacturing. Despite initial hesitations about relinquishing her independence, Lilly recognized the opportunity to deepen her expertise in private equity and direct investments as a pivotal career moment.

A Shifting Dynamic in Family Offices

Lilly is one of several women now leading family offices, a trend that has gained momentum in recent years. High-profile appointments include Jane Simpson at James Dyson’s family office, Weybourne, as well as Alisa Mall and Marie Young, who became CIOs for Michael Dell and Sergey Brin, respectively. “I’m just surprised at the number of women CIOs there are, and it’s wonderful,” Lilly remarked, reflecting on the notable changes since she entered the financial industry in the mid-1980s.

Investment Approach and Characteristics

According to Lilly, one factor contributing to women’s success in CIO roles may be their generally more conservative investment strategies. Family offices often engage in patient capital, making investments with a long-term outlook. Women investors tend to remain even-tempered, leading to less impulsive decision-making, which aligns well with the patient nature of family office investing.

Statistical Insights

A survey conducted by Botoff Consulting reveals that women occupy 29% of executive roles in family offices, surpassing their representation in many corporate sectors. However, only 16% of surveyed family offices reported having a female CIO, illustrating a significant opportunity for future growth.

The Power of Networking

Women in these roles often rely on tight-knit networks to navigate challenges in a predominantly male-dominated industry. For example, Margo Doyle, CIO of S-Cubed Capital, is actively involved in a WhatsApp group for female CIOs, fostering collaboration through events and shared experiences. Kristin Gilbertson, who serves as CIO at Access Industries, described the family office environment as a collegial one, where sharing insights and knowledge is essential in managing external allocations.

Personal Experiences in the Family Office Sector

Gilbertson, who joined Access Industries in 2013, acknowledged that her expertise in endowment management was a vital asset. She shared that her role in this family office environment has allowed her to focus on her skills without being defined by her gender. Similarly, Noelle Laing, now at Builders Vision, noted the satisfaction of concentrating on a singular vision after moving from serving numerous clients to one principal.

Building a Family Office

For pursuing professionals in the family office space, Doyle emphasizes the importance of adaptability. Her journey with S-Cubed Capital reflects the necessity of aligning investment strategies with a family’s unique risk appetites and liquidity requirements, an aspect essential for successful leadership in this arena.

Conclusion

The rise of women in CIO positions at family offices marks a significant shift in the financial landscape. With a combination of experience, conservative investment approaches, and strong collaborative networks, women like Lilly, Doyle, and Gilbertson are paving the way for future leaders in the investment management sector.