SFO and MFO: Difference between single and multiple family offices

There are two main types of family offices: single-family offices (SFOs) and multi-family offices (MFOs). The primary difference between the two is the number of families they serve.

A single-family office (SFO) is a dedicated organization that serves the needs of a single ultra-high-net-worth family. The SFO is fully customized to meet the specific needs and preferences of that family, providing personalized wealth management services that are tailored to their unique circumstances. The family members have complete control over the decision-making process and can choose to outsource certain tasks or keep them in-house.

On the other hand, a multi-family office (MFO) serves the needs of multiple high-net-worth families. MFOs offer similar services to SFOs, but they work with several families simultaneously, sharing resources and costs. This allows for economies of scale and greater access to specialized expertise that may not be available to a single family. MFOs also provide opportunities for families to network and collaborate on shared interests, such as philanthropic initiatives or investment opportunities.

While SFOs are fully dedicated to meeting the specific needs of a single family, MFOs offer the benefits of shared resources and a broader range of expertise. However, MFOs may not provide the same level of customization and personalization that SFOs can offer. Ultimately, the choice between an SFO and MFO depends on the needs and preferences of each family.