Traditional research on the role of higher education in intergenerational mobility scrapes the surface of how complex institutional environments contribute to improved socioeconomic outcomes for students. Drawing from economics, sociology, and higher education research, this study interrogates the complexities of the relationship between students and institutions to understand what factors influence an institution's ability to facilitate upward socioeconomic mobility. Drawing data from Integrated Postsecondary Education Data System, Baccalaureate and Beyond 08/12, and Opportunity Insights data, multi-level structural equation modeling was employed to examine how institutional quality, mediated by peer environment and compositional racial diversity of faculty and staff, explain differences in institutional intergenerational mobility rates across institutions. The findings reveal that higher levels of institutional quality and peer environment were associated with lower levels of intergenerational mobility. In contrast, institutions with higher percentages of faculty and staff of color had higher intergenerational mobility rates. These findings demonstrate the importance of examining institutional factors in relation to intergenerational mobility.