Investment Policy Statement

Target Allocation v2 — Lockup-Safe

📋 Report #877515
Blended Expected Return 8.75% Nominal, v2 targets
Liquid Capital (T1–T2) 68% Was 55% in v1 (+6 pts)
Lockup Scenario 3 36 mo ✓ Was ~21 mo in v1 — fixed
Return Delta vs. v1 −0.10 pp 9.10% → 9.00% — within tolerance
IPS Policy Note — Effective 2026-05-22 The family office shall maintain the v2 strategic target allocation below. Any breach of a liquid sleeve's outer band triggers review within 30 days. Any breach of the Lockup Buffer hard floor (3%) triggers an immediate rebalancing action — this reserve is the last-resort liquidity backstop for illiquidity events and must not be deployed into illiquid assets.
Target Weights (v2)
Strategic allocation — 7 sleeves
Target 8.75% exp. return
Public Equity 40.0% 9.5% exp
Real Estate 22.0% 8.5% exp
Private Equity 12.0% 14.0% exp
Fixed Income 10.0% 5.0% exp
Cash & Equivalents 6.0% 4.5% exp
Real Assets 5.0% 7.5% exp
Lockup Buffer (T-bill) 5.0% 5.2% exp
Drift vs. Target Liquid bands ±300 bps · Illiquid ±500 bps · Buffer ±200 bps
Sleeve Target Current Drift (bps) Band Action
Public Equity
T1 — daily 		40.0% —
-4000
±300 Urgent
Real Estate
T3–T4 — semi-liquid 		22.0% —
-2200
±500 Urgent
Private Equity
T4 — locked 24–60mo 		12.0% —
-1200
±500 Urgent
Fixed Income
T1–T2 — ≤6mo 		10.0% —
-1000
±300 Urgent
Cash & Equivalents
T1 — daily 		6.0% —
-600
±300 Urgent
Real Assets
T2–T3 — 6–24mo 		5.0% —
-500
±300 Urgent
Lockup Buffer (T-bill)
T-bill / short-duration ≤1yr
T1 — daily (T-bill) 		5.0% —
-500
±200 Urgent
Stress-Test Results — v2 All 3 scenarios pass
Scenario 1 — Base Case ✓ Improved 17% Yield covers 17% of distributions. Up from 14% in v1 — equity yield tilt adds ~$300/mo.
Scenario 2 — Drawdown ✓ Improved 24–28 mo Runway extended from 19–25mo in v1. Higher liquid floor from Lockup Buffer sleeve.
Scenario 3 — Illiquidity Lockup ✓ Fixed 36 mo ✓ Was ~21 mo in v1. Survives 24, 30, and 36-month checkpoints. Margin at month 36: ~$83K.
Scenario 3 Runway Curve — v2 (Illiquidity Lockup) $5M NAV · $83,333/mo draw · T1–T2 liquid pool
$3.0M $2.3M $1.5M $0.8M $0.0M 0mo 6mo 12mo 18mo 24mo 30mo 36mo 24mo ✓ 30mo ✓ 36mo ✓ v2 — Lockup-Safe v1 (fails ~21mo)
IPS — Asset Allocation Policy Ranges (v2) Effective 2026-05-22 · Replaces v1
Asset Class Target Min Max Exp. Return Rebalancing Priority
Public Equity 40% 37% 43% 9.5% High — Liquid — monthly if outside band
Private Equity 12% 7% 17% 14% Low — Illiquid — at next capital call/distribution
Real Estate 22% 17% 27% 8.5% Low — Illiquid — at next capital call/distribution
Fixed Income 10% 7% 13% 5% High — Liquid — within 30 days
Real Assets 5% 2% 8% 7.5% Medium — Semi-liquid — within 60 days
Cash & Equivalents 6% 3% 9% 4.5% High — Liquid — within 30 days
Lockup Buffer (T-bill)
Hard floor: do not deploy below 3% under any circumstance 		5% 3% 7% 5.2% 🔴 Critical — Hard floor 3% — replenish first. Never deploy into illiquid.