What References Should a Family Office Request Before Hiring an Investment Manager?

Ask for references who saw the investment manager work in different conditions, including a loss or disagreement. A polished recommendation says less than a first-hand account of how the manager made decisions, shared problems, and met obligations.

Choose References by What They Observed

Start with former investors who can describe the full relationship, including realized outcomes and capital calls. Ask how reporting went and how the manager handled a difficult period. Speak with current investors too, while keeping in mind that they may want to preserve an ongoing relationship.

Add references who saw different parts of the manager's work, such as prior business partners and colleagues. Lenders and service providers can offer another perspective. A lender may have observed how obligations were handled. A former colleague may have seen how decisions were challenged. A service provider may know whether information and payments arrived as agreed. Ask the manager for a list that covers both successful and unsuccessful situations.

Find People Beyond the Supplied List

Use the manager's references as a starting point. Ask each contact for names of others who worked directly with the manager on the same investment or business relationship. Follow useful leads and record how each person knows the manager. Seek contacts with first-hand knowledge, not general impressions based on reputation.

A consistent hiring process helps keep reviews fair across candidates. My family office hiring guidance recommends contacting at least four references and trying to meet at least one in person or by video. The right number depends on the role and available contacts. See family office governance and partner and service provider selection for related process considerations.

Ask for Specific Examples

Keep calls focused on events the reference personally observed. Ask:

• "Would you work with this manager again, and what would affect that decision?"
• "How did the manager communicate when an investment missed its plan?"
• "Did the manager meet commitments and disclose setbacks promptly?"
• "How did the manager respond to disagreement or a request for supporting records?"
• "What was the most difficult part of working together?"

When a reference gives a broad compliment, ask for an example. Ask about the manager's conduct during the hardest period, not only at closing or after a successful outcome. Follow up on a negative account and give the manager a chance to respond. Treat it as a lead to investigate, not proof on its own.

Compare Accounts and Records

Document who you spoke with, the relationship, examples offered, and limits on the person's knowledge. Compare accounts for consistency, then ask the manager to explain material differences. If a claim remains unclear, request relevant records or another contact. Silence or refusal to provide a reference is not conclusive. Understand the reason and decide whether the gap matters for the role.

References do not replace a review of the manager's work history and results. For supporting records and independent confirmation, see records for claimed investment results and checking a reported track record.

Checklist

• Request former investor contacts with first-hand knowledge of the full relationship.
• Include a reference from a difficult or unsuccessful situation where possible.
• Speak with people who observed the manager in different working roles.
• Ask each reference for additional direct contacts, then follow useful leads.
• Record examples, relationship context, and limits on each reference's knowledge.
• Give the manager a chance to explain material inconsistencies.

Go deeper: What due diligence questions should a family office ask a manager?.

The best rule of thumb I have found is to call and email at least four and try to meet in person with at least one of these references.

Sources: Family Office Club investor due diligence framework, How to Start a Family Office, The Single Family Office. Informational only, not financial, legal or tax advice.