Single Family Office vs Multi-Family Office #
A Single Family Office (SFO) serves one affluent family. It is established to manage all aspects of that family’s wealth, investments, succession planning, and legacy goals with a personalized approach.1 A Multi-Family Office (MFO) supports several unrelated families, providing similar services but pooling resources, staff, and infrastructure for efficiency and broader service access.2 The choice between SFO and MFO depends on the family’s asset size, complexity, desire for privacy, and costs.
Key Features & Differences #
- Control & Customization: SFOs offer total control, maximum privacy, and bespoke solutions, whereas MFOs provide professional management at reduced cost but less customization.3
- Cost Efficiency: MFOs help families with smaller fortunes (<$150 million AUM) benefit from economies of scale and specialist staff.4
- Governance: SFOs implement governance, succession, and management tailored to family values. MFOs balance interests across multiple families, often requiring alignment in risk appetite and investment strategy.5
- Regulatory Considerations: MFOs are typically subject to more formal regulations due to their quasi-institutional role.6
- Service Range: Both can provide investment, administrative, tax, legal, concierge, and philanthropic services, but only larger offices extend to true institutional-grade capabilities.7
Families seeking total privacy, flexibility, and legacy stewardship may favor an SFO if their asset base and operational needs justify it. Others opt for an MFO to access world-class expertise without the full expense or administrative burden.8
Best Practices & Considerations #
- Match office type to family size, wealth, governance needs, and long-term objectives
- Regularly review costs, services, and regulatory exposure for suitability
- Consider hybrid models or partnerships for specialized needs
- Prioritize transparent reporting, conflict management, and clarity in operations
- Use professional external providers where in-house capabilities are limited
See Also #
- Definition of a Family Office
- History of Family Offices
- Legal Structures and Jurisdictions
- Roles of Family Members vs Professionals
