For ultra-wealthy families, managing wealth effectively goes beyond simple investment management strategies. It involves estate and succession planning, tax structuring, wealth management, philanthropy, and lifestyle services.
While traditional financial institutions offer basic investment services, families with $100 million or more in assets often establish family offices for more comprehensive and customised services.
However, not all family offices are the same. Depending on the complexity of a family's needs and asset size, families typically choose between two main models: Single Family Office (SFO) and Multi-Family Office (MFO). Each offers a distinct approach to wealth management with its own set of advantages and challenges.
This guide will break down the key differences between these models, helping you determine which one best aligns with your family's financial needs and priorities.
Understanding Family Offices: The Basics
A family office is a specialized entity designed to manage, protect, and grow wealth for high-net-worth families. Unlike traditional private banks or wealth management firms, family offices provide holistic financial oversight, handling everything from investments to estate planning and philanthropy.
The Two Main Types of Family Offices
Single Family Office (SFO) – A private firm dedicated to managing one family's wealth and affairs. Offers maximum control but is expensive to maintain.
Multi-Family Office (MFO) – A firm that manages wealth for multiple families, allowing them to share resources and reduce costs.
In recent years, a third model has emerged—a tech-driven, outsourced approach that offers on-demand access to financial experts, professional service providers, and advanced technologies without the need to hire and manage a full-time team. While there is no universal definition for this model yet, it is commonly referred to as a "Family Office Platform."
Each model caters to different levels of wealth, control preferences, and financial complexity.
Key Differences Between Single and Multi, and Virtual Family Offices
| Factor | Single Family Office (SFO) | Multi-Family Office (MFO) | Family Office Platform |
|---|---|---|---|
| Best For | Families with $100M+ in assets | Families with $25M+ in assets | Families with $10M–$50M in assets |
| Structure | Private office with a full-time staff | Shared office serving multiple families | Outsourced financial advisors & tech-based services |
| Control & Customization | Full control over financial decisions | Moderate control, shared services | High flexibility, but less direct oversight |
| Cost | High ($2M+ per year) | Moderate (shared expenses among families) | Lower (pay-as-you-go model) |
| Privacy & Security | Highly confidential | Secure but shared with other families | Secure, but depends on cybersecurity measures |
| Investment Strategy | Fully tailored to the family’s goals | Customized but follows firm-wide strategies | Flexible, can engage different experts |
| Estate Planning & Philanthropy | Comprehensive, designed for long-term family governance | Included, but not always as tailored | Available, but relies on external legal advisors |
| Lifestyle & Concierge Services | Includes real estate, security, travel, and private staffing | Available but shared with other families | Limited, unless specifically outsourced |
| Operational Complexity | High – Requires hiring & managing a full team | Moderate – Managed by professional advisors | Low – Minimal overhead, pay only for needed services |
Which Family Office Model Is Right for You?
If your family has over $100M and wants maximum control, privacy, and tailored services, an SFO is the best option.
If your family has at least $25M and seeks comprehensive financial services without the high costs, an MFO provides a balanced approach.
If your family has $10M–$100M and prefers the flexibility and customization of a SFO at lower costs, a Family Office Platform offers expert solutions without a full-time team.
1. Single Family Offices: Maximum Control, Maximum Cost
A Single Family Office is a privately owned financial institution that serves only one family. This structure provides complete autonomy over investment strategies, estate planning, and lifestyle services.
Advantages of an SFO
Full Control – Families make decisions without external influence.
Privacy & Security – All financial matters remain confidential within the family office.
Highly Personalized Services – Investments, philanthropy, and estate planning are fully customized.
Long-Term Focus – Ideal for intergenerational wealth preservation.
Challenges of an SFO
High Costs – Running a full-time office can exceed $2M per year.
Operational Complexity – Requires hiring investment managers, tax advisors, estate planners, and personal staff.
Regulatory Burden – Compliance with global tax and financial laws is a continuous challenge.
Best For: Families with $100M+ in assets who require full control over their financial affairs.
2. Multi-Family Offices: A Cost-Effective Middle Ground
A Multi-Family Office serves several wealthy families under one umbrella, providing access to top-tier experts without the high costs of running an SFO.
Advantages of an MFO
Lower Costs – Expenses are shared among multiple families.
Access to Top Experts – Wealth management is handled by seasoned professionals.
Comprehensive Services – Investment management, tax structuring, and philanthropy are included.
Challenges of an MFO
Less Control – Families must share decision-making with the firm.
Potential Conflicts of Interest – Some firms promote financial products that benefit them.
Not Fully Customized – Services are personalized but not exclusive to one family.
Best For: Families with $25M+ in assets who want a better alternative to private banking.
3. Family Office Platforms: A Lean, Flexible Approach
A Family Office Platform is a fully outsourced, technology-driven model that connects families with investment managers, tax planners, and legal advisors on demand.
Advantages of a Family Office Platforms
Lower Costs – Families pay only for the services they need.
Highly Flexible – Services can evolve based on changing financial needs.
Global Access – Families can work with specialists from different regions.
Challenges of a VFO
Limited Direct Control – Requires ongoing coordination with multiple advisors.
Variable Service Quality – Depends on the expertise of chosen professionals.
Increased Oversight – Needs active monitoring and communication across advisors.
Best For: Families with $10M–$100M in assets who value flexibility and cost efficiency while staying actively involved in decision-making.
Final Thoughts: Which Family Office Model Is Right for You?
The decision between a Single, Multi, or Platform model depends on your family’s needs including complexities, priorities, and desired level of control.
An SFO is best for ultra-high-net-worth families seeking full customization, privacy, and in-house staff.
An MFO is ideal for those who need comprehensive wealth management an alternative to private banking.
A Family Office Platform is perfect for families wanting flexibility, control, expert access, and lower overhead expenses.
Each model has its strengths, and the right choice depends on how much control, customization, and cost efficiency your family values.
