Should I choose a single or multi-family office?

The choice between single and multi-family office structures depends on your assets, control preferences, and specific needs:

Single Family Office (SFO):

Advantages:

- Complete control over investment decisions and operations

- Maximum customization of services and processes

- Highest level of privacy and confidentiality

- Dedicated team focused solely on your family

- Flexibility to adapt quickly to changing needs

- Direct access to exclusive investment opportunities

Requirements:

- Minimum $100-500 million in investable assets

- Annual costs: $1-5 million minimum

- Willingness to hire and manage staff

- Long-term commitment to structure

Multi-Family Office (MFO):

Advantages:

- Lower cost through shared resources and expertise

- Access to professional management and systems

- Reduced administrative burden

- Broader investment opportunities through scale

- Regulatory compliance handled professionally

- Established infrastructure and processes

Requirements:

- Minimum $25-100 million in investable assets

- Annual costs: 0.5-2% of AUM plus additional fees

- Acceptance of shared resources and less customization

- Comfort with other families in the same structure

Key Decision Factors:

Choose SFO if:

- Assets exceed $250 million

- High need for privacy and control

- Complex family dynamics or unique requirements

- Desire for maximum customization

- Multi-generational wealth transfer focus

Choose MFO if:

- Assets between $25-250 million

- Cost efficiency is important

- Prefer professional management

- Want access to broader investment opportunities

- Simpler family structure and needs

Hybrid Options:

- Virtual family office for $5-25 million families

- Outsourced chief investment officer model

- Partnership with established family office

Many families start with an MFO and transition to an SFO as their wealth and complexity grow over time.