Family Office Guide

For families managing significant wealth, financial success can bring a new set of challenges. A business sale, inheritance, retirement, marital transition, or other liquidity event can create meaningful opportunities while also introducing greater financial, administrative, and governance complexity, often requiring a more coordinated approach. This is where a family office can play an important role.

Family offices have become one of the fastest-growing segments of the wealth management industry. Collectively managing more than $3 trillion in assets, the market is projected to grow to approximately $5.4 trillion by 2030.

While no two family offices are alike, common areas of support may include:

The right approach depends on a family’s goals, circumstances, and the complexity of its financial affairs. Some may benefit from a highly customized organization dedicated to their specific needs, while others may prefer a more flexible, technology-enabled model that provides access to select services and expertise at a lower cost.

Understanding the different approaches and how they align with a family’s needs is an important first step in determining whether a family office may be appropriate.

Below is a breakdown of these different structures, and who they may be best suited for:

Single Family Office:

A single family office (SFO) serves one family exclusively and provides the highest level of personalization, privacy, and control. Typically staffed by a carefully selected team of professionals, an SFO operates much like a private company dedicated solely to managing the family's financial affairs. 

Key characteristics of an SFO include:

Services of an SFO often rival those offered by leading private banks and investment firms while allowing the family complete control over operations and decision-making, including:

Best suited for: Families with substantial wealth (typically exceeding $500 million) and complex financial needs who value maximum customization and are willing to support the higher operating costs.

Multi Family Office:

A multi-family office (MFO) serves multiple families through a shared platform, providing institutional-quality services at a significantly lower cost than establishing a dedicated family office. 

Key characteristics of an MFO include:

These firms offer broad expertise across investments, tax planning, estate planning, and administration while allowing families to benefit from shared resources and experienced professionals. Typical services include:

Best suited for: Families that have accumulated wealth ranging from $100-$500 million, and are seeking comprehensive wealth management and family office services without the expense of building their own organization.

Administrative Family Office:

An administrative family office (AFO) focuses primarily on the operational side of wealth management rather than making investment decisions. 

Key characteristics of an AFO are:

Investment management is generally handled by outside advisors, while the administrative office serves as the central point of organization. Typical services include:

Best suited for: Families that have accumulated wealth ranging from $20-$100 million who already have trusted investment professionals, but want help simplifying day-to-day financial administration.

Virtual Family Office:

A Virtual Family Office (VFO) combines technology with a carefully curated network of outside professionals to deliver many of the benefits of a traditional family office without the expense of maintaining a dedicated in-house staff.

This model coordinates investment professionals, accountants, attorneys, insurance specialists, and other advisors through a centralized platform, offering flexibility and scalability as family needs evolve. Key characteristics of a VFO include:

Virtual models typically require lower overhead while providing access to specialized expertise. Typical services include:

Best suited for: Families who have accumulated wealth ranging from $20-$50 million, who are seeking sophisticated family office services with greater flexibility, lower operating costs, and access to specialized expertise.

Choosing a Family Office:

Family offices exist along a spectrum of service models, each designed to address different levels of wealth complexity and family needs. The right structure depends on several factors, including:

Ultimately, there is no one-size-fits-all approach. The most effective Family Office structure is one that aligns with a family’s unique circumstances, priorities, and long-term objectives.

Regardless of the structure, a Family Office can serve as an important strategic resource that helps families bring greater organization to their financial affairs, coordinate the professionals supporting them, and make more informed decisions as their needs evolve.

Reach out to your Oppenheimer Advisor or our Family Office Solutions team today to discuss preserving your legacy, and explore our Family Office Solutions page to learn more.

Frequently Asked Questions About Family Office: