Multi-Family Office (MFO)

A Multi-Family Office (MFO) is a wealth management organization that serves multiple ultra-high-net-worth families, sharing resources and expertise.

Key Characteristics:

- Serves multiple wealthy families

- Shared resources and infrastructure

- Professional management structure

- Lower cost than single family office

- Minimum typically $25-100 million per family

Service Model:

Shared Resources:

- Professional investment team

- Administrative infrastructure

- Technology and reporting systems

- Compliance and regulatory support

- Research and due diligence capabilities

Typical Services:

- Investment management and alternatives

- Tax and estate planning

- Family governance advisory

- Philanthropy and impact investing

- Lifestyle and concierge services

- Next-generation education

Advantages:

- Cost efficiency through shared resources

- Professional management and expertise

- Established systems and processes

- Broader investment opportunities

- Regulatory compliance handled

- Peer family interactions

Considerations:

- Less customization than SFO

- Shared attention and resources

- Potential conflicts between families

- Less privacy than dedicated office

- Standardized service packages

Fee Structure:

- Management fees: 0.5-2% of AUM

- Performance fees on alternatives

- Additional fees for specialized services

- Lower total cost than SFO for most families

Types of MFOs:

- Independent MFOs

- Bank-affiliated MFOs

- Converted SFOs

- Boutique specialist MFOs

Selection Criteria:

- Asset minimums and fee structure

- Investment philosophy and performance

- Service breadth and quality

- Cultural fit and values alignment

- Geographic presence and capabilities

MFOs offer professional family office services at lower cost, making them accessible to more families while maintaining high service standards.