Understanding Family Office Models: A Comprehensive Guide
Single Family Office (SFO)
Pioneered by the Rockefellers, the SFO model offers:
Characteristics:
- Dedicated team of professionals
- Ultimate collaboration level
- Complete focus on one family
- Comprehensive service integration
Requirements:
- Typically $200M+ net worth
- $50K+ establishment costs
- $300K+ annual operating costs
- Full-time dedicated staff
Multi-Family Office (MFO)
A more accessible model serving multiple families:
Structure:
- Shared professional team
- 5-20 client families
- Integrated service delivery
- Combined expertise under one roof
Economics:
- Client net worth: $20M+
- Annual fees: $25K-$100K
- Additional implementation fees
- Asset management revenue
Virtual Family Office (VFO)
The modern, flexible approach:
Key Features:
- Independent professionals collaborating
- Technology-enabled coordination
- Olympic team analogy - best in class
- Lower overhead, greater flexibility
Accessibility:
- Starting at $1M+ net worth
- Annual fees: $5K-$25K
- Advanced planning: $50K+
- Scalable service model
Multi-Disciplinary Firm (MDF)
A hybrid approach offering:
- Multiple services under one roof
- Integrated professional expertise
- Combined with VFO capabilities
- Flexible service delivery
The Future of Family Offices
The trend is moving toward:
- Hybrid models combining approaches
- Technology-enabled collaboration
- Lower cost access points
- Greater service flexibility
The most successful approaches will likely combine:
- Core in-house expertise
- Virtual specialist networks
- Technology integration
- Scalable service models
The future belongs to firms that can deliver comprehensive service while maintaining flexibility and cost-effectiveness through strategic combinations of these models.
