Choosing between a single-family office (SFO) and multi-family office (MFO) depends on assets under management, complexity of needs, and long-term strategy. This guide helps families assess which model fits best in 2025.
Understanding the Core Differences
SFOs serve one ultra-wealthy family and offer full control, while MFOs cater to multiple families and provide shared services and cost efficiencies.
Cost Considerations
Running an SFO often requires $100M+ in assets. MFOs are more flexible, often with entry thresholds starting at $10M–$25M.
Customization vs. Standardization
SFOs provide tailor-made governance, reporting, and investment models. MFOs rely on standardized processes but increasingly offer modular services.
Risk Management & Privacy
SFOs offer complete discretion but may lack institutional-grade controls. MFOs offer robust frameworks but share infrastructure with others.
Editor's Note:
If you value control, bespoke service, and can justify the cost, SFOs shine. Otherwise, MFOs offer a strong alternative for wealthy families looking to scale without operational burden.
FAQs
- What is the AUM threshold to start an SFO? Typically $100M+, though some start around $50M with lean setups.
- Are MFOs less secure? No. Many have advanced cybersecurity and regulatory compliance, just shared systems.
- Can you convert from MFO to SFO later? Yes. Some families begin with an MFO and spin off an SFO as their needs grow.
- Do MFOs offer estate planning? Most full-service MFOs include estate, tax, and legal advisory as part of their package.
- Are family offices only in the West? Not anymore. Asia, Middle East, and Latin America are seeing strong FO growth.
User Comments
- Thomas L.: This is exactly the debate we’re having now. Very timely.
- Ivy W.: I thought MFOs were only for the ultra-rich. Eye-opener!
- Dan B.: Thanks for outlining the AUM thresholds. That’s always the awkward question.
- Liam P.: We started with an MFO. Eventually moved to a lean SFO—it was worth it.
- Rachel S.: I’d love to see a comparison table between SFO/MFO services.
(Editors: admin)