Multi-Family Office

A Multi-Family Office (MFO) is a shared wealth management platform that serves multiple ultra-wealthy families, providing comprehensive services while achieving economies of scale.

Key Characteristics:

Shared Service Model:

- Serves multiple wealthy families

- Shared costs and resources

- Professional management team

- Standardized processes with customization

Service Offerings:

- Investment management and advisory

- Tax planning and compliance

- Estate and succession planning

- Family office administration

- Philanthropic services

- Limited lifestyle services

Organizational Structure:

- Independent ownership or bank-affiliated

- Professional management team

- Shared infrastructure and technology

- Client advisory committees

Financial Requirements:

- Minimum net worth: $25-100 million

- Investable assets: $10-50 million

- Annual costs: Lower than single family office

- Management fees: 0.5-2% of assets under management

Advantages:

- Lower cost structure than single family office

- Access to institutional-quality services

- Shared expertise and resources

- Professional governance and oversight

- Peer learning opportunities

Disadvantages:

- Less customization than single family office

- Shared resources and attention

- Limited privacy compared to SFO

- Potential conflicts of interest

- Less family control

Types of Multi-Family Offices:

- Independent MFOs (privately owned)

- Bank-affiliated MFOs (part of large banks)

- Boutique MFOs (specialized focus)

- Virtual MFOs (technology-enabled)

Typical Client Profile:

- High-net-worth to ultra-high-net-worth families

- Seeking professional management

- Cost-conscious families

- Prefer shared governance model

- Value peer relationships

Multi-family offices are ideal for families seeking sophisticated wealth management services at a lower cost than single family offices, while still maintaining access to institutional-quality resources and expertise.