For investment managers seeking commitments from institutional investors, understanding the distinctions between the different categories in this universe is important.

The term “institutional investor” can be a misnomer. A number of types of institutions invest, from foundations and endowments to corporate and public pensions to insurance companies and sovereign wealth funds, and each has its own particular mandate, or “DNA,” that influences its investments — some invest on behalf of retirees, others for citizens of a country, and yet others for social and humanitarian goals.

In a post on the CFA Institute’s website titled “The Seven Kinds of Asset Owner Institutions,” Thomas Brigandi and Sloane Ortel explain these investor distinctions. The authors run through the seven types of investors that make up not only the institutional investors universe but other investor classes such as high-net-worth and family office investors.

Brigandi and Ortel w