How much does a family office cost?
Family office costs vary significantly based on several factors:
Single Family Office Costs:
- Setup costs: $2-5 million annually minimum
- Ongoing costs: 1-3% of assets under management
- Break-even point: Typically requires $100+ million in assets
Multi-Family Office Costs:
- Management fees: 0.5-2% of assets under management
- Lower setup costs due to shared resources
- Minimum investment: Often $10-50 million
Cost Components:
- Investment management fees
- Administrative expenses
- Professional staff salaries
- Technology and infrastructure
- Compliance and regulatory costs
- Office space and facilities
The total cost depends on the complexity of services, family size, geographic scope, and level of customization required.
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