Elizabeth Lilly embarked on an inspiring journey in the world of finance when she established her own asset management firm in 2017. This milestone was the culmination of a dream that had been three decades in the making. From her early days as an equity analyst, Lilly meticulously documented her aspirations and insights in a composition notebook. She drew inspiration from financial luminaries like value investor Robert Bruce and turnaround expert Jack Byrne, envisioning the future of her firm and the impact she would have in the industry.
However, less than two years after launching her firm, Lilly faced an unexpected opportunity that led her to pivot her career. The Pohlad family, renowned for owning MLB's Minnesota Twins, approached her with an irresistible offer to become their chief investment officer. Tasked with overseeing a vast portfolio, which included public equities and direct investments in healthtech and manufacturing, Lilly was initially hesitant about leaving her newfound independence. Nonetheless, she recognized the potential for growth and learning that this role presented.
Lilly reflected, “I was doing small-cap public equities, and I weighed that with what I would get to learn about private equity funds and direct investing. I thought to myself, 'This is a point in my life where I don't know when I'll ever get this opportunity again.'” Her decision not only broadened her horizons but also positioned her within a rapidly evolving landscape of family offices.
Elizabeth Lilly is part of a growing movement of women stepping into prominent roles within family offices, the private investment arms of wealthy families. This trend is highlighted by recent appointments of female chief investment officers (CIOs) across various family offices. For instance, James Dyson appointed Jane Simpson as CIO of his family office, Weybourne, while billionaires Michael Dell and Sergey Brin named Alisa Mall and Marie Young as CIOs of their respective family offices in 2022.
Lilly expressed her surprise at the increasing number of women in these influential roles, noting, “Compared to where I started in the business in 1985, there has been a huge change.” She suggested that women may excel in these positions due to a more conservative approach to financial decision-making. Family offices often have patient capital, deploying funds only when the right opportunities arise and measuring performance over years, not quarters, which aligns with the temperament of many female investors.
According to a survey by Botoff Consulting, women hold 29% of executive positions in family offices, significantly higher than their representation in corporate America and sectors like finance and private equity. However, the survey also revealed that only 16% of the 433 firms surveyed reported having a female CIO. This disparity highlights both the progress made and the work still needed to achieve gender parity in leadership roles.
Four female CIOs recently interviewed by CNBC emphasized the importance of their tight-knit networks in an industry where numbers can feel sparse. For example, Margo Doyle, CIO of S-Cubed Capital, is part of a WhatsApp group for female CIOs that organizes dinners and events to foster collaboration among family offices in the San Francisco Bay Area. Kristin Gilbertson, CIO of Access Industries, described the family office industry as collegial, stating, “When you're allocating to external managers, it's a bit of a team sport.”
Gilbertson joined Access Industries in 2013 after a career in traditionally male-dominated sectors, including managing pension investments at the World Bank and overseeing endowments at both Stanford University and the University of Pennsylvania. She noted that her experience at Access has been refreshing, allowing her to focus on her expertise without the constant reminder of her gender.
Noelle Laing, another prominent female CIO, transitioned to Builders Vision after managing impact investments at Cambridge Associates. She highlighted the fulfillment that comes from focusing on a single principal's vision, which allows for a more concentrated effort in achieving investment goals. Conversely, Margo Doyle sought to work with first-generation family offices and was hired by billionaire venture capitalist Mark Stevens to lead S-Cubed Capital's portfolio after a rigorous selection process.
Doyle emphasized the importance of building personal relationships within family offices, stating, “When you're coming into this high-level position, it's a very personal relationship that you're developing.” She also advised aspiring family office CIOs to be adaptable, considering varying risk tolerances and liquidity needs among family members.
The rise of women like Elizabeth Lilly and her peers in family office leadership roles marks a significant evolution in the financial landscape. As more women assume the role of CIOs, they bring unique perspectives and approaches to investment strategies, proving that diversity in leadership is not just beneficial but essential for the future of family office management.
