A family office is an organization that coordinates financial and other services for a wealthy family. A single-family office serves one family, while a multi-family office serves several. Some families use a small in-house team and outsource other work; others build a larger staff. The right setup depends on the family's needs and resources.
What does a family office do?
A family office helps a family organize its financial affairs over time. Depending on the family, that can include overseeing investments, coordinating professional services, and planning how the office itself will operate. There is no single structure that fits every family: some use a few in-house professionals and outsource other services, while others build a larger team.
One description in a Family Office Club book excerpt is a single-family office with one or two full-time professionals, and no more than three, handling the work while other services are outsourced. That lean structure can be an option for families who find a larger staff too expensive.
Single-family and multi-family offices
A single-family office (SFO) works for one family. A multi-family office (MFO) serves more than one family. Families can also use a "virtual" arrangement, with a small core team coordinating outside providers instead of employing a full staff. These labels describe different ways to organize the work; they do not determine which one a family should choose.
The scale of the sector varies with the definition and source. Deloitte estimated 8,030 single-family offices worldwide in 2024, up from 6,130 in 2019. That estimate counts offices, not wealthy families, and it is distinct from estimates of the number of people with very high wealth. (Deloitte Private, 2024)
When might a family consider one?
A family may consider a family office when its financial affairs and service needs become difficult to coordinate through existing arrangements. Wealth alone does not settle the question: the family's needs, desired level of control, and comfort with ongoing staff and operating costs all matter.
A Family Office Club book excerpt offers one perspective rather than a universal threshold: it says a family with $50 million may or may not need its own office, while some choose a lean virtual setup; it says a family with $100 million "almost always" needs some type of single or virtual family office. That is the author's view, not a rule that applies to every family.
From Family Office Club events
"From that point, we realized that there's some people who have never heard the term family office. In fact, most people, most ultra wealthy people globally have never heard the term."
Sources
- Deloitte Private, Family Office Insights Series: Global Edition 2024. deloitte.com
- Family Office Club book excerpt.
- Family Office Club event transcript
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