Single family office vs multi-family office: which is right?

How the two structures differ

An SFO is organized around one family's needs. The family can set its priorities, choose its advisers, and decide how much work to handle internally. That can mean a staffed office, or a lean setup with a small core team and outsourced specialists. In a book excerpt, Richard C. Wilson describes "one or two-no more than three-full-time professionals" with other services outsourced.

An MFO works with multiple families and pools some staff, expertise, and infrastructure. That can make it easier to access services such as investment management, tax, legal, and wealth structuring without hiring a separate team for each family. In an event excerpt, a speaker describes an organization that grew from an investment boutique into a multi-family office with investment, tax, legal, multigenerational, and cross-border services. Actual services and costs vary by provider, so ask what is included and how fees are charged.

Which one fits your family?

Consider an SFO when your family wants close control over decisions, a dedicated team, and services designed around your circumstances. The tradeoff is responsibility for staffing, oversight, and the office's operating costs. A lean or virtual structure can reduce the in-house team, while still coordinating outside professionals.

Consider an MFO when you want access to a shared professional team and would rather not build and manage every function yourself. Ask how the provider handles conflicts between client families, who makes investment decisions, whether advice is independent, and how the fee model works. A family may also use an MFO for some functions while keeping other advisers or investment decisions separate.

There is no single wealth threshold that determines the answer. Deloitte estimated 8,030 single family offices worldwide in 2024, with a projection of 10,720 by 2030 (Deloitte Private, 2024). Those estimates describe office counts, not a recommended entry point for an individual family. The practical test is whether the value of control and dedicated capacity justifies the cost and management time.

A practical way to decide

List the services your family needs, how often you need them, and which decisions require direct family oversight. Then compare the annual cost and responsibilities of an SFO with the services and governance offered by an MFO. Ask each provider for a clear breakdown of fees, staffing, reporting, confidentiality practices, and how your family can change or end the arrangement.

A family that needs a few coordinated specialists may prefer an MFO or a lean virtual office. A family with complex needs, strong preferences about control, and capacity to oversee a dedicated team may choose an SFO. Revisit the choice as the family's needs and circumstances change.