Is it worth building your own single-family office, or should you join an established multi-family structure? The answer depends on more than just assets under management.
While a single-family office (SFO) allows for maximum control and privacy, it requires scale, compliance expertise, and infrastructure.
Multi-family offices (MFOs), on the other hand, offer shared services and institutional-grade operations. A common mistake: wealthy families often underestimate the ongoing cost of building an SFO from scratch. Legal, tax, HR, and cybersecurity layers must all be addressed.
FAQs:
Q: What is the asset threshold for setting up a single-family office?
A: Typically, a minimum of USD 100 million is advisable, but strategic goals also matter.
Q: Are MFOs regulated?
A: Yes, in most jurisdictions they operate under regulatory supervision and professional standards.
User Comments:
Great breakdown — cost and trust are the two biggest issues we faced.
We moved from an MFO to a boutique SFO setup last year. Worth it.
Thanks for clarifying the differences. It's not a one-size-fits-all decision.
(Editors: admin)