Governance & Succession
Single vs multi-family office: a breakeven model
The single- vs multi-family office choice is, at one level, a cost structure: a dedicated office carries fixed overhead a shared one spreads across many families. This model shows where the lines cross for your assets and scope. It is a framework for structuring the question, not investment, tax, or legal advice.
Order-of-magnitude. Round figures are fine.
Investment + ops staff combined. Min 2.
Salary + benefits + bonus. Senior CIO benchmark: $400K–$600K.
Modelled cost comparison
SFO annual cost
$2.0M
MFO annual cost
$1.6M
Breakeven AUM
$333.1M
An MFO is likely cheaper today.
Your modelled SFO cost exceeds the MFO fee by a meaningful margin. Worth pressure-testing scope before any structural decision.
Methodology notes
- Modelled at AUM $250M, SFO headcount 5, loaded cost $350K/FTE, extended scope.
- MFO schedule is a typical SFO-grade band (core: 22–50 bps, extended: 35–75 bps, concierge: 55–110 bps). Bespoke proposals will vary.
- Cost is rarely the deciding factor. Privacy, talent retention, deal access, and family fit drive outcomes more than basis-point differentials.
Reading the result
Cost breakeven is necessary but not sufficient: control, privacy, talent, continuity, and conflict-of-interest considerations all bear on the decision and rarely reduce to a number. Use the breakeven as the financial floor of the conversation, then weigh the qualitative factors covered across the governance & succession pillar.