The Art of Effective Governance: Avoiding Investment Committee Pitfalls

June 23, 2023

Key Takeaways

  1. Practicing good governance is easier said than done. Despite best intentions, investment committees can easily fall into well-documented traps that derail constructive stewardship.
  2. In GEM’s experience, failings in investment committee effectiveness typically stem from avoidable breakdowns of people, processes, or behaviors; these manifest as either loss of integration with the institution, unhealthy action bias, or a failure to sort what’s relevant from what isn’t.
  3. Avoiding these pitfalls in the first place is the best way to improve an investment committee’s effectiveness.

Read More

Recent Insights

GEM Announces Senior Leadership Promotions

GEM announced the promotion of six senior investors to Managing Director. The promotions reflect the depth and continuity of GEM's investment leadership across buyouts, venture capital, marketable investments, client strategy, and investment sourcing, and reinforce the firm's long-term commitment to leadership development and the pursuit of investment excellence.

Female Dealmakers Launch New Firms Despite Headwinds

As the pipeline of emerging managers continues to grow, Caroline Dallas, a Director in GEM’s Investment Research Group explained to the Wall Street Journal Pro Private Equity why growing investor interest in this cohort could create meaningful tailwinds for the next generation of women-led firms.

How I Invest: Kate Simpson - Inside GEM: How a $12.5 Billion Platform Selects Outlier Funds

Head of Venture Capital, Kate Simpson, joined David Weisburd on the How I Invest podcast to share how GEM evaluates venture managers and builds conviction through disciplined sourcing, rigorous reference work, and thoughtful fund-level underwriting in an increasingly bifurcated market.

Connect with us

Let’s start a conversation about how we can help.