Understanding multi-family offices: A complete guide

In the realm of wealth management, the term "multi-family office" has been gaining significant traction. But what exactly is a multi-family office (MFO), and why are HNWIs (high net worth individuals) increasingly turning to them?

A multi family office is not just a financial services provider – it is a centralized, full-service wealth management hub designed to handle the complex financial lives of multiple wealthy families under one organizational umbrella. These families typically share similar needs in investment management, tax strategy, succession planning, and philanthropy, making the MFO model a cost-effective and scalable solution.

The growing popularity of multi family offices reflects broader shifts in the financial landscape: rising intergenerational wealth transfers, increasing global investment complexity, and a strong demand for institutional-grade advisory services tailored to private families.

MFOs differ substantially from traditional wealth managers and private banks by offering holistic and often interdisciplinary services that integrate legal, tax, estate, and lifestyle management under one roof.

In this article, we’ll explore the concept of multi-family offices, the types of services they provide, and why they’ve become a cornerstone of sophisticated wealth management strategies.

What is a multi-family office?

An MFO is a specialized wealth management firm that provides a wide range of comprehensive financial services to multiple high-net-worth families. Unlike single-family offices (SFOs), which are dedicated to serving only one ultra-wealthy family, MFOs pool the resources of several families to deliver institutional-quality solutions with greater cost efficiency, professional depth, and operational scalability.

MFOs typically cater to families with $25 million or more in net worth, though thresholds can vary significantly based on jurisdiction and the service model offered. By spreading operational costs across multiple clients, multi-family offices allow families to access high-caliber financial expertise, legal and tax planning, family governance, and lifestyle services without having to build and manage a dedicated infrastructure themselves.

In essence, an MFO offers the customization and privacy of a private office while delivering the shared efficiencies of a collective model. Many MFOs also act as fiduciaries, meaning they are legally obligated to put client interests first, which enhances trust and transparency.

MFOs are often structured as independent advisory firms, bank-affiliated platforms, or evolved single-family offices that have opened their doors to other families.

By using an MFO for wealth management, you can get a highly personalized, holistic service without the heavy responsibility or overhead of running an SFO yourself.

You can read more about different family office structures, including virtual and hybrid models, in our article: The family office structure: A comprehensive guide.

An overview of multi-family office services

MFOs offer a long list of integrated services aimed at preserving, growing, and transferring family wealth across generations.

These services are highly customized to meet the complex financial, legal, and lifestyle needs of affluent families. The goal of a multi-family office is to act as a central hub that simplifies the management of family wealth, supports legacy planning, and protects assets across jurisdictions and generations.

Here are some of the key multi-family office services:

Investment management: Crafting bespoke investment strategies to align with each family's risk tolerance, return objectives, time horizons, and impact preferences. MFOs often provide access to alternative investments, private equity, and institutional-grade funds typically unavailable to retail investors.

Estate planning: Ensuring that family wealth is transferred efficiently and tax-advantageously through wills, trusts, and generational gifting strategies. MFOs also help with succession planning to maintain family harmony and ensure governance continuity.

Tax services: Providing proactive, international tax planning and ongoing compliance support. This includes income tax optimization, estate tax minimization, gift tax planning, and jurisdiction-specific structuring.

Philanthropy: Assisting families in achieving their charitable goals through structured giving strategies such as donor-advised funds, private foundations, and impact philanthropy.

Lifestyle management: Offering concierge-level services including luxury asset acquisition, staffing, travel planning, real estate management, and family education programs.

In addition to the above, some multi family offices offer family governance advisory, cybersecurity consulting, risk management, and next-generation education to prepare heirs for stewardship responsibilities. These services are often delivered through in-house teams and a curated network of external advisors.

Many people wonder what the multi-family office minimum net worth is. The simple answer is that most MFO clients have a net worth of more than $25 million though in some countries or with modular service models, this threshold may start as low as $10 million.

Families should assess both the cost structure and service depth when considering if an MFO is appropriate for them.

The rise of multi-family office wealth management

Multi-family office wealth management has become a cornerstone service for HNWIs seeking comprehensive and sophisticated financial solutions. The growing popularity of MFOs can be attributed to several key factors:

• Cost efficiency: By serving multiple families, MFOs can share the costs of high-end services and robust infrastructure – such as technology platforms, cybersecurity, and talent – making them a cost-effective alternative to standalone SFOs.

• Expertise access: MFOs often employ or access specialists across domains – such as tax advisors, estate planners, governance experts, and private markets professionals – delivering a sophisticated one‑stop-shop for all wealth management needs.

• Tailored personalization: Despite serving multiple clients, MFOs offer highly customized services. Dedicated teams craft bespoke wealth strategies aligned with each family’s values, risk appetite, legacy goals, and succession plan.

The rise of multi family offices is also closely linked to macro trends. The number of family offices globally has surged, driven by rapid wealth creation, particularly in technology sectors, and the urgency of intergenerational wealth transfer. This boom has outpaced traditional wealth-management offerings and elevated MFOs as scalable yet deeply personalized solutions.

MFOs also benefit from cross-fertilization of ideas, enabling them to provide innovative investment, governance, and philanthropic solutions through their collective expertise and exposure to diverse family dynamics.

Additionally, MFOs are increasingly becoming global by design, managing cross-border wealth with jurisdictional expertise and local partnerships – a critical advantage for globally mobile HNWI families.

The multi family office model offers a compelling balance: institutional-grade service, operational efficiency, and deeply personalized family-centric strategies in an environment of escalating wealth complexity.

Moving on to various types of fee structures used in MFOs.

Understanding multi-family office fees

Multi-family office fees can vary widely depending on the range and complexity of services provided. Here are some of the most common multi-family office fee structures:

Flat fees

Some MFOs charge a flat annual retainer for their suite of services. This fee is usually based on the expected scope of work and level of access required to manage the family's wealth.

Flat fees offer cost predictability and budgeting ease, but they may not align with actual usage, meaning families may pay for services they don’t fully leverage.

Asset-based fees

Many MFOs utilize a fee structure based on a percentage of the assets under management (AUM). This model aligns the multi-family office's interests with those of the family – the greater the family’s portfolio growth, the more both parties benefit.

Typical ranges fall between 0.5% to 2% of AUM annually, with lower rates achievable for higher asset tiers or leaner service models.

Service-based fees

Some MFOs bill families for specific services delivered such as financial planning, legal and tax advice, estate planning, or philanthropic structuring.

This modular approach provides flexibility and transparency, allowing families to tailor the fee structure to their unique priorities.

Performance-based fees

Emerging among modern multi family offices, performance-based fees link compensation to investment performance. If returns exceed a predefined benchmark, the MFO receives a percentage of those gains.

This structure creates strong alignment but may encourage higher-risk behavior and requires careful benchmark setting and transparency.

Hybrid fee structures

Many MFOs adopt hybrid models, combining elements like a base flat fee with performance incentives or blending service-based charges with asset-based rates.

This flexibility ensures families receive custom-aligned pricing, reflecting both the depth of service and outcomes delivered.

Fee transparency

To aid decision-making, the most client-centric multi-family offices provide itemized fee schedules, scenario-based cost projections, and detailed comparison tools that align fees with services rendered.

Benchmarking costs

Families can benchmark MFO costs against industry norms (such as 0.5%-1% of AUM for full-service packages) and consider how firm structure (e.g., bank-affiliated vs. independent) affects pricing dynamics.

Hidden costs to consider

Beyond stated fees, families should account for possible additional costs, including service reload fees, short-notice transaction surcharges, or fees for bespoke governance workshops and educational programming.

Fee vs. value assessment

The most strategic families evaluate MFO cost not in isolation but in terms of return on governance, intergenerational continuity impact, and overall operational cohesion they receive from their chosen structure.

The role of technology in multi-family office private services

A critical factor in the effectiveness of MFOs is the use of advanced multi-family office software and multi-family office fintech solutions to streamline operations, enhance transparency, and deliver real-time insights to clients. Technology empowers MFOs to manage increasingly complex portfolios and multi-generational dynamics with efficiency and precision.

Leading multi-family office software platforms such as Aleta provide centralized dashboards for portfolio tracking, performance attribution, document storage, and risk monitoring. These tools help consolidate reporting across multiple custodians, asset classes, and family members, delivering a single source of truth.

Technology also enables cross-border compliance management, automated tax reporting, cybersecurity safeguards, and workflow automation for service delivery. This infrastructure is particularly valuable when managing families with complex entity structures, offshore trusts, and international assets.

MFOs are increasingly adopting client-facing portals, giving family members (especially next-gen heirs) mobile access to real-time financial data, learning resources, and secure communication tools.

Additionally, AI-powered analytics and predictive modeling tools are being used to support scenario planning, cash flow forecasting, and risk-adjusted portfolio rebalancing.

These advanced multi-family office fintech solutions are essential. They not only enhance operational efficiency but also elevate the client experience by making wealth management more interactive, transparent, and future-ready.

The future of multi-family offices

The future of multi-family offices (MFOs) is set for significant change, driven by digital advancements, the Great Wealth Transfer, and shifting client expectations. As 30% of global wealth is expected to change hands within the next decade, MFOs must adapt to stay competitive.

Digitalization is key, with next-gen clients demanding seamless tech integration for real-time access and personalized advice. However, combining technology with human insight will be crucial as the human aspect remains vital in building and maintaining strong client relationships.

Sustainability and ESG factors are also crucial, as the next generation prioritizes impactful investments. MFOs that offer sustainable investment options and comprehensive ESG reporting will attract and retain these socially conscious clients.

Client education and communication also are becoming more important. MFOs will need to invest in educating their clients about complex financial topics and maintaining open, transparent communication to build long-term trust.

Additionally, the evolving multi-family office landscape is being shaped by the increasing institutionalization of family wealth. Many MFOs are adopting private equity-style structures, launching co-investment vehicles, and building internal deal teams to access direct investment opportunities for clients.

The rise of global families – with cross-border assets, multi-jurisdictional tax exposures, and international heirs – is creating demand for MFOs with in-house expertise in international estate structuring, regulatory compliance, and dual citizenship planning.

With many families now operating as multi-generational enterprises, the future MFO will be expected to offer services beyond asset management – including family governance frameworks, succession planning, conflict resolution, and next-gen leadership development.

We also see a surge in MFO interest from first-generation entrepreneurs in tech, healthcare, and clean energy who demand more agile, impact-driven, and tech-enabled advisory models. This is pushing MFOs to reimagine traditional service structures with modular and customizable offerings.

As competition in the space intensifies, differentiation will hinge on each multi family office’s ability to deliver not just performance – but purpose, clarity, and continuity.

At Aleta, we’re dedicated to sharing our knowledge with both wealth management professionals and HNWIs in our knowledge hub. Under the “Academy” theme you’ll find a series of articles specifically aimed at explaining concrete investment terms and metrics.

Competition in the MFO sector is growing. To be considered one of the best multi family offices, MFOs will need to differentiate themselves through innovative service offerings, superior client experience, and a strong focus on client-specific needs.