T The terms single-family office and multi-family office are increasingly used, but they can still be vague for some. What is a family office? How does it work? What are the advantages of working with a multi-family office? For Monaco Économie, Philippe Feller, founder and managing director of PF MFO—a leading company in comprehensive wealth management—wanted to clarify this important and timely topic.
Could you explain what a Multi-Family Office is?
A multi-family office acts as a coordinator at the family level. It brings its experience and network to handle the tax, wealth, and family-related needs of each family it serves.
What types of services does a Multi-Family Office offer?
A multi-family office offers a very broad range of services, such as wealth consolidation, financial planning, portfolio and real estate management, estate and tax planning, philanthropy, and more.
How are multi-family offices structured and organized?
Generally, multi-family offices rely on two pillars. Internally, the team consists of experienced professionals in their respective fields (banking, real estate, taxation, etc.), and externally, they collaborate with specialized firms depending on the family’s needs.
What are the selection criteria to become a client of a multi-family office?
Families that turn to multi-family offices typically have significant wealth and are looking for a coordinator to manage it through a long-term relationship. They seek support in financial, tax, and estate matters.
How do multi-family offices manage their clients’ investments?
Multi-family offices are often founded by wealth management professionals—such as private bankers, lawyers, and fund managers—who have the network needed to help clients manage their wealth effectively. They have access to exclusive investments, preferential negotiation rates, and greater diversification of investment portfolios.
What is the difference between a single-family office and a multi-family office?
Multi-family offices manage the assets of several families, unlike a single-family office which serves only one family.
How do multi-family offices ensure the confidentiality and security of their clients’ information?
They implement internal procedures to secure information. Employees and service providers are bound by confidentiality agreements. Communication software is secured, and risks are regularly assessed to ensure the confidentiality and security of client information.
What are the advantages of working with a multi-family office instead of managing investments independently?
Multi-family offices offer a network of professionals capable of managing each family’s wealth while considering their specific needs. They also benefit from favorable conditions with the professionals they work with, which they can pass on to their clients. Finally, a significant advantage is the reduction in costs and resources compared to a single-family office.
How do multi-family offices evaluate investment opportunities for their clients?
The multi-family office assesses investment opportunities by analyzing the client’s needs, risk tolerance, and especially their goals. Then, they consult with investment professionals to develop a strategy that meets the client’s expectations.
