Discover the pros and cons of Single Family Offices (SFOs) and Multi-Family Offices (MFOs) to determine the best structure for your needs.
Choosing between an SFO and MFO depends on your wealth size, desired control, and operational complexity.
- Single Family Office (SFO): Offers full customization and control, but requires higher cost and staff. Best for $100M+ families.
- Multi-Family Office (MFO): Shared resources, economies of scale, access to broader investment platforms. Ideal for families with $10M–$50M net worth. Other differences include:
- Governance: SFOs require internal family oversight.
- Investment Policy: MFOs often provide ready strategies.
- Confidentiality: SFOs offer more privacy.
FAQs:
Q: Can an MFO evolve into an SFO?
A: Yes, many families start with an MFO before scaling into a dedicated SFO.
Q: Are MFOs truly independent?
A: It varies—choose fiduciary MFOs that don’t sell proprietary products.
User Comments:
- “Our MFO gave us access to venture capital deals we couldn’t source alone.”
- “SFO gave us the control to align investments with our family values.”
Editor's Note:
There’s no one-size-fits-all model. Choose based on your goals, not just AUM.
Tags: SFO vs MFO, private wealth, family governance, Asia UHNW, investment structure
(Editors: admin)