Multi-Family Office (MFO)

A Multi-Family Office (MFO) provides comprehensive family office services to multiple wealthy families through a shared platform, combining professional expertise with cost efficiency.

Key Characteristics

Shared Infrastructure

- Professional investment and administrative teams

- Institutional-grade technology and reporting platforms

- Shared office facilities and operational systems

- Economies of scale across multiple families

Professionalized Services

- Dedicated Chief Investment Officer (CIO) and investment committee

- Experienced family office professionals

- Standardized governance and reporting frameworks

- Access to institutional investment opportunities

Cost-Effective Model

- Shared costs across multiple families reduce individual burden

- Professional management without full SFO overhead

- Access to expertise that might be cost-prohibitive for individual families

Service Offerings

Investment Management

- Professional portfolio management and oversight

- Access to alternative investments and private markets

- Risk management and performance monitoring

- Tax-efficient investment strategies

Administrative Services

- Consolidated reporting across all assets

- Cash management and liquidity planning

- Coordination with external service providers

- Technology platforms for family access

Advisory Services

- Estate and tax planning coordination

- Next-generation education and governance

- Philanthropic planning and implementation

- Lifestyle and concierge services (often available)

Ideal For

Asset Threshold: Typically $30M-$100M in investable assets

Family Profile: Families wanting professional management without SFO costs

Service Needs: Desire for comprehensive services with shared infrastructure benefits

Cost Structure

- Management Fees: Typically 0.75-1.5% of assets under management

- Retainer Fees: Often $50K-$500K+ annually for administrative services

- Project Fees: Additional charges for specialized services

- Minimum Fees: Usually $250K-$1M+ annually regardless of asset level

Advantages

- Cost Efficiency: Lower costs than maintaining an SFO

- Professional Management: Access to experienced investment professionals

- Diversified Expertise: Broader range of specialists and services

- Institutional Access: Entry to investments typically reserved for larger institutions

- Reduced Overhead: No need to manage staff and infrastructure

Considerations

- Less Control: Investment decisions may be committee-based

- Shared Resources: Staff attention divided among multiple families

- Standardization: Less customization than SFO model

- Potential Conflicts: Need to manage interests across different families