Private Foundation OCIO Evaluation and Search
Client & Objective
A grantmaking foundation with a $65 million endowment engaged North Pier to lead a process to select a new OCIO. Nearly ten years into their existing OCIO relationship, the foundation sought an independent assessment and a broader perspective on identifying the optimal partner.
The Investment Committee was particularly interested in evaluating the alignment of potential OCIOs with the foundation’s mission—both in terms of investment capabilities and firm structure—including focus areas such as local affordable housing and worker cooperatives. The Committee also sought an active thought partner to provide guidance on higher spending rates, mission-driven impact, and long-term perpetuity goals.
Process
After thorough discovery, which included interviews with Finance Committee members and other stakeholders, we drafted a tailored RFP. The RFP incorporated detailed requirements covering mission-aligned credentials and implementation history, private markets capabilities, legacy illiquid oversight, risk management, reporting quality, client service, transition planning, and fees. Minimum thresholds for initial candidates included relevant foundation experience, verifiable performance composites, and staffing depth.
The Committee advanced a slate of finalists for interviews based on decision-ready analysis provided by North Pier. Once finalists were selected, North Pier prepared the candidates, moderated finalist meetings, completed reference checks, and tested reporting samples and private markets workflows. Following the selection, North Pier supported final negotiations and agreement review.
Results
- Selected an OCIO that met the Foundation’s inclusion and impact objectives while preserving existing strengths.
- Aligned the IPS and asset allocation with the Foundation’s mission, including a defined mission-aligned sleeve.
- Established reporting across public and private markets, including legacy illiquids and mission-aligned impact metrics, with clear ownership and timelines.
- Through the process, including detailed exploration by each candidate, the Committee gained confidence in balancing spending rates, impact, and long-term perpetuity goals.