What is a multi-family office?

Summary 

• Multi-family offices offer the kind of integration and deep expertise that many families need. 
• Multi-family offices offer custom services designed for high- and ultra-high net worth individuals, but are more cost-effective because the costs are spread among many unrelated families.
• Multi-family offices are best for families with a net worth between $25 and $100 million. 
• Unbiased can connect you to a financial advisor to answer all your questions about how to manage family wealth.  

What is a multi-family office?

A multi-family office offers highly personalized and private wealth management services for multiple high-net-worth families. 

A team of experts provides a wide range of services, including tax planning, investments, risk management, succession, estate planning, business continuity, and more. 

It’s different from traditional wealth management services for its vertical integration among all financial and legal services, personalization for ultra-high-net-worth families, and risk management. 

What services does a multi-family office offer?

A multi-family office has a breadth of services. The services are often integrated to protect wealth and transfer it more efficiently. They may include the following. 

Financial and wealth planning

The family office may oversee financial planning, retirement, education, cash flow, and funding other life events. An integrated solution from a multi-family office can help with every aspect of your financial life. 

Investment advisory

A multi-family office can create an investment portfolio to help meet your goals. Alternative investments, property management, asset allocation and a few examples of how a multi-family office customizes investments for high-net-worth families. 

Trust and estate planning

Wealth preservation is top of mind for many families, and a multi-family office may have the expertise to guide you through the process. Whether you’re thinking about the different legal structures you may need to set up or how to pass on the family business, a multi-family office can help you evaluate your options. 

Tax planning and compliance

Taxes can affect your wealth in a significant way. A multi-family office should be able to help you lower your income and estate tax burdens while passing on wealth to the next generation more efficiently. The reporting and compliance burdens for high-net-worth families can be high, so a multi-family office can be immensely helpful. 

Risk management and insurance 

You’ll want help protecting the assets, reputation, businesses, and wealth you’ve built in life. Multi-family offices are equipped to make recommendations for insurance, cybersecurity, and more. 

What are the benefits of a multi-family office?

The structure of a multi-family office has some clear benefits. These include:

• Integrated financial management: A multi-family office offers comprehensive financial services for high- and ultra-high-net-worth families. The unique and complex needs of these families require coordinated services offered by a multi-family office, including estate planning, tax strategy, family governance, alternative investments, asset management, investments, and more. 
• Deep expertise: An established multi-family office can offer a wide range of expertise from a team of specialists. You’re not limited to a single wealth manager or service.
• Institutional-level investments: Multi-family offices can offer access to institutional-level investments that aren’t typically available to most investors. 
• Lower cost than a family office: A multi-family office offers customizable services at a lower price point than a family office because it can spread the cost over multiple families. 
• Scalability: As your family wealth and business grow, you can add more services from a multi-family office as needed.  

What’s the difference between a multi-family office and a single-family office?

There are several key differences between a multi-family office and a single-family office. The differences are summarized in the table below. 

To sum it up, single-family offices are more personalized but more expensive. Multi-family offices offer established systems and a wide range of experts at a lower cost. 

How do I choose a multi-family office?

Choosing a multi-family office often depends on your net worth and need for dedicated financial services. You may also consider a single-family office and general wealth management services. 

Choose a multi-family office if you:

• Have a net worth between $25 and $100 million.
• Need personal services and deep expertise.
• Want to pay less in advisory fees.
• Don’t want to handle the headache of hiring staff for a single-family office.
• Want established systems. 
• Want access to institutional investments. 

Choose a single family office if you:

• Have a net worth of over $100 million. 
• Want exclusivity for your financial services. 
• Have complex financial situations and wealth that need full-time attention.
• Are willing to pay for in-house experts. 
• Are ywilling to take on the challenges of staffing a family office. 
• Need the personal attention of a dedicated staff.
• Need to establish family governance and succession. 

Choose wealth management services if you:

• Have a net worth under $25 million.
• Don’t need full-time employees dedicated to your finances.
• Don’t want to get involved with complex investments.
• Don’t need to talk to an advisor every day. 
• Enjoy managing some aspects of your finances yourself.
• Can make sense of paying for fee-based services. 

Bottom line

A multi-family office has many of the benefits of a family office without the cost or administration burden. 

If you’re looking for the integrated, highly-personalized services offered by a family office without the cost, a multi-family office could have what you need. 

If you need professional advice on which direction to take, Unbiased can connect you with an advisor suited to your needs.