Multi-family office

A multi-family office, often shortened to MFO, offers many of the services of a family office to a number of client families. Some began as the single-family office of one family and later took on others. Others were set up as independent firms, or operate within banks, trust companies or wealth managers.

Services commonly offered include:

• Investment management or oversight of the family’s portfolios.
• Consolidated reporting across accounts, entities and advisors.
• Financial administration, such as accounting and cash management.
• Coordination with the family’s lawyers, accountants and tax advisors.
• Family governance and education, including support for family meetings and next generation programs.
• Philanthropy support.

The exact mix varies from firm to firm, and so does how they are paid. Families comparing options usually look at scope, independence and how fees are structured.

How it differs from a single-family office

A single-family office works for one family only. A multi-family office shares its staff, systems and expertise among several families, which usually lowers the cost to each. The trade-off is less customisation and control than a dedicated office provides.

A multi-family office generally manages the family’s wealth rather than the operating company. It may still be closely involved in succession: helping with ownership questions, coordinating advisors and organising education for younger family members.

Why it matters for the successor

Advisors at a multi-family office often see succession questions early, because they work with both generations. They are in a good position to notice when the structure is ready but the successor is not. How advisors refer a family to a coach looks at how that conversation usually starts.