Should you set up your own single-family office?

MFO Insights
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05/2025

SFOs were, and sometimes still are, established for prestige reasons, even when the asset base does not justify the complexity and cost. Furthermore, many SFOs established in the past may no longer be the most suitable solution due to evolving family dynamics, differing needs of the next generation, or new regulatory requirements.

Today, the concept of the multi-family office (MFO) is well established, having proven its benefits over time. In fact, it can often be the most appropriate solution – combining the advantages of personalized service, specialist expertise, professional governance, and operational efficiency.

At first glance, having your own proprietary SFO team may seem to offer greater independence. However, the reality is more nuanced. SFO staff may avoid raising sensitive topics out of concern for their job security. Moreover, single-family offices also often have family members in executive positions, a situation that does not always foster candor. This is less common in an MFO, particularly when it is owned and operated by active partners serving multiple families. These professionals are not beholden to a single family, or one family member and their potentially subjective preferences. They are more likely to be objective and can draw on their experience in strategic and operational issues, gained in serving other families. Also, they understand the virtue of adhering to best practices, often also driven by regulatory requirements.

Other issues to consider when contemplating a single- or a multi-family office are costs and resources. To staff your single-family office, you need a small team covering investments, accounting and administration, possibly outsourcing tax, legal and family governance advice. Assuming you succeed in hiring a good team – noting that quality people command a stiff market price for a job where loyalty and discretion are paramount and career perspectives quite limited – personnel costs can quickly become excessive. In fact, in our opinion, they can only be justified by an asset base of above one billion. Joining a multi-family office does not mean an additional layer of costs. On the contrary, it replaces the ongoing expense of running an SFO with its own employees, including salaries, social security contributions, IT systems, office space and more. Thanks to economies of scale and enhanced negotiation power with external service providers, overall costs are usually lower.

Succession and continuity planning remain essential, regardless of the structure. A well-established MFO offers a robust mix of professional capabilities, experiences, and generational perspectives. This breadth creates a holistic platform for wealth-related governance that surpasses what any SFO can offer on its own. Moreover, a well-structured MFO ensures long-term continuity and better back-up solutions. SFOs often depend on a handful of individuals, which can create serious knowledge and operational gaps if those employees depart.

Personalized attention and bespoke solutions are also ensured in a multi-family office set-up, particularly when building your single-family office structure under the umbrella of a multi-family office.

Economies of scale also apply to fee pricing for investments as well as for other services, such as custodian banking and trade execution. The larger the volume of a family office, the more pronounced its clout for negotiating third-party fees and services. By joining a multi-family office, you benefit from the greater pricing power of the group.

Additionally, through existing relationships and pooled investments a multi-family office gives access to more favorable share classes and, importantly, access to top-tier managers in asset classes such as Hedge Funds or Private Markets.

Governance and influence within an SFO may seem more direct, but this does not always translate into better oversight. High-quality MFOs actively include a family’s trusted advisors in decision-making to ensure checks and balances without conflicts of interest. Operational burden is another factor to weigh. The responsibility of managing a single-family office can be overwhelming, demanding time and effort from family members and their advisors. Furthermore, too strong an involvement of principals, often fostered in a SFO set-up, can lead to deviations from defined investment principles and to pro-cyclical behavior.

Conclusion

We think for most wealthy families, a dedicated multi-family office is the best way to assure objective, independent strategic wealth governance, management, and handover to the next generation.

While both single-family offices and multi-family offices have their merits, many wealthy families are increasingly leaning towards a dedicated multi-family office due to their cost efficiency, access to a broad range of expertise, and the ability to share best practices. The multi-family office model allows families to enjoy sophisticated wealth management services without the substantial financial and operational burdens of maintaining a single-family office while ensuring a setup for long term preservation and growth of their wealth across generations.

Ultimately, the right choice depends on the specific circumstances of each family. However, for many, the compelling benefits of a multi-family office make it the ideal solution for optimizing their wealth management, in our view.

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Wilhelm von Stotzingen

Senior Partner
Über MFO
Marcuard Family Office wurde 1998 in Zürich gegründet und ist ein unabhängiges, partnergeführtes Multi-Family Office.
Warum?
Als Family Office kümmern wir uns umfassend um alle relevanten Vermögensthemen. Damit Ihnen Zeit bleibt für andere Dinge.
Wann?
Ganz gleich, ob Sie Ihr Unternehmen verkaufen, die aktuelle Situation restrukturieren, oder schwierige familiäre Verhältnisse meistern – die damit verbundenen Herausforderungen können überwältigend sein. Als erfahrene Berater begleiten wir Sie professionell durch Phasen des Übergangs und auch durch ruhigere Zeiten.
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