Threshold Group has launched an investment advisory program tailored to private family foundations, seeking to integrate the philanthropic and investment sides, and deal with the family dynamics issues that affect boards.

Threshold Group, the multi-family office, has launched an investment advisory program tailored to private family foundations, seeking to integrate the philanthropic and investment sides, and deal with the family dynamics issues that affect boards.

During the firm’s work with wealthy families, Threshold said it recognized a need for the family foundation to work more closely with the family’s other advisors, so that the family’s philanthropic wishes can inform their investment strategies – or at least ensure the two are not counter-productive.

In response to this, Threshold’s new offering will emphasize investment strategies, planning and execution that are in concert with a family’s goals and philanthropic wishes. It will also include partnering on family dynamics and the interpersonal issues that affect family boards, as well as advice on the decision-making process in family-run organizations.

“Like families, many family foundations … want to do the responsible thing with their investments, but they also see themselves as vastly different from the broader universe of corporate or community foundations,” said Craig Muska, director of investment management for Threshold’s foundation services division.  

The family office also said it would seek to address the problems arising from the “human factor” of foundations’ boards and investment committees, which are subject to emotional decision-making. To counter this, the firm will implement a “human awareness” approach to investment management for foundations, employing a goals-based approach and aiming to minimize the effects of human emotion on portfolio performance.

Threshold Group has offices in Washington, Philadelphia and Oregon.