Governance and Management

Does Recent Banking Sector Stress Highlight the Need for Robust Operational Due Diligence?

Yes. A rigorous operational due diligence (ODD) review is a core piece of the investment manager underwriting process that allows limited partners to make informed investment decisions. Recent banking sector events, including yesterday’s collapse of First Republic Bank, highlight the need for a constantly evolving ODD framework capable of identifying and addressing both ongoing and new risks that managers may encounter.

The Work of a Lifetime: Spend-Down Funds

A growing number of institutions and families are choosing to spend down assets over a limited time, rather than investing in perpetuity. There are valid arguments for—and against—using a spend-down approach to achieve philanthropic and investment goals. This paper provides historical context for spend-down funds, considers nuances for achieving good governance, and suggests an approach for dynamic asset allocation strategy, with case studies as illustrations.

Sustainable and Impact Investing 2022: Insights and Perspectives

In our 2022 Sustainable and Impact Investing Survey, we reached out to Cambridge Associates clients for insights into how investors are thinking about sustainable and impact investing, as well as to identify changes in the field over the past two years and to understand possible future trends. Of the 144 clients who responded, 93 reported engaging in sustainable and impact investing, and this chart book explores trends in the investment structure, implementation strategies, and governance and measurement of sustainable and impact investing.

Endowment Governance: Aligning Foundation Investments and Mission

Drawing on research that Cambridge Associates has conducted with major grant-making foundations, this paper discusses the shifting mission-aligned investment landscape and the importance of governance in developing and overseeing a mission-aligned investment program. We lay out important steps in the mission-alignment process to define the scope of the commitment, structure, key milestones, and measures of success.

Solvency Beyond Relief: Unlocking the Full Potential of SFA Program Assets

The American Rescue Plan Act of 2021 included substantial relief funds for the most troubled US multiemployer pension plans through its Special Financial Assistance (SFA) program. This paper looks at how multiemployer plans have a unique opportunity to improve their solvency through 2051 and beyond by optimizing how they invest both SFA relief funds and their existing plan assets.

Optimizing Wealth Transfer for Families: A Focus on Next Gen Investors

Most families of significant wealth inevitably grapple with intergenerational wealth transitions. While shifting the responsibility for a family’s long-term financial health can be a challenging endeavor, generational transfers are also an opportunity for families to take a fresh look at their financial goals. With this in mind, we advocate a three-part framework for families seeking to integrate members of the next generation into the wealth management process, which focuses on engagement, education, and empowerment.