From Founder to Investor: Helping Founders Turn Business Success into a Lasting Legacy

We sat down with Mary Jo Palermo, Partner in the Private Client Practice at Cambridge Associates, to discuss the unique journey of founders as they transition from building businesses to building enduring legacies. Over a 35 year career investing alongside founders—both within global institutional frameworks and in private wealth and family office settings—Mary Jo has developed a nuanced understanding of the pivotal transition from owner-operator to whatever comes next.

Mary Jo, you’ve worked with many founders who have just had a major liquidity event, either selling part or all of their business. What’s the first thing you notice about this transition?

Mary Jo: First of all, it’s an amazing achievement and these business owners have done what most only dream of—built something from the ground up. The shift from being an operator—making daily decisions—to the owner of capital is liberating but can also be disorienting. The question becomes: “What do I build next?” It’s not just a change in your balance sheet, it’s a change in your identity. We put ourselves in our clients’ shoes because we know this is a deeply personal transition. We’ve seen it many times, and we understand how important it is to honor the achievement and prepare individuals and their families for the excitement and uncertainty that comes with this evolution.

What are some of the most common questions you hear from first generation founders at this stage?

Mary Jo: The sale creates space for broad strategy. Founders often ask, “What do I want this capital to do for me, my family, my community?” It’s not about retiring; rather, you’re redirecting your energy and vision to architecting something new. And everyone does this in their own time and way. The core is defining your purpose and the impact you want to have. I love helping my clients navigate this process because it’s truly so different for everyone.

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