What Is a Family Office?

Operating costs for a single-family office typically range from 0.5% to 1.5% of assets under management annually, with smaller offices often experiencing higher percentage costs. Major expenses include personnel salaries (investment professionals, CFOs, tax advisors, operations staff), technology and infrastructure, professional services (legal, audit, compliance), and office space. A basic SFO might cost $1-3 million annually, while comprehensive operations can exceed $5-10 million.

A family office makes sense when your wealth has reached sufficient scale ($100+ million), your financial affairs are complex enough to justify dedicated expertise, and you value privacy, customisation, and centralised control over your family's financial and non-financial needs. Consider whether you need coordinated management across multiple entities, jurisdictions, or asset classes; whether you want to integrate philanthropy, family governance, and next-generation education; and whether you have the resources and commitment to build and sustain a dedicated team.

There’s no fixed threshold, but most experts suggest a single family office becomes viable at around $100 million in net worth. Multi-family offices may suit families with $10 million or more in investable assets, depending on complexity and service needs.

Traditionally, these were the two main options in terms of management structures and there was a correlation to the level of wealth, with the single family office coming at a higher price. Today however this speaks more of the client focus, either dedicated to a single client, serving a closed group or clients, or open to bringing on new clients on an ongoing basis. Multi-family offices are often more cost-effective for families with lower thresholds of investable wealth.

Core services include investment management, financial planning, tax strategy, estate and succession planning, risk management, and reporting. Many also handle philanthropy, family governance, lifestyle management (travel, property, security), and next-generation education. The scope depends on the family's needs and the office's structure.