Do you know what really holds a family office together — who does what, how decisions are made, or why billionaires bother with layers of staff and roles?
Most only see the wealth, not the system quietly working behind it.
Hence, in this article, we’ll break down the complete structure of a family office; its roles, reporting lines, internal teams, decision hierarchies, and how top families build systems that are designed to last generations.
The family office model exists in two primary forms:
i) Single family organizational structure
ii) Multi family organizational structure
A Single-family office is worth setting up if you’re ultra-wealthy (usually $100M+—$150M+ in the U.S./U.K., $50M+ in Singapore or Dubai). This office of yours would then be fully controlled, funded, and operated by either you and your own family or a holding entity (think: a private company or trust set up to manage everything from investments and taxes to inheritance and lifestyle).
The internal structure from there on looks something like this:
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The two main structural components of a single family office are its core employees (and functions) together with division and workflow
A functioning SFO typically requires 8–25 full-time employees depending on asset complexity, jurisdictions involved, and family size.
Key positions include:
Dept: Executive Office
Background: Ex–private banker, PE partner, or family office lead (15–25 yrs)
Salary: $400K–$1.2M (US/UK) | $350K–$800K (Dubai/Singapore)
Role: Sets strategic direction (e.g., deciding between establishing a Singapore vs. Jersey trust structure, or shifting asset focus toward impact investing), oversees all divisions (e.g., investments, tax, philanthropy, estate, and lifestyle management), and reports to the family directly (typically via a Family Council, matriarch/patriarch, or the board of the family holding company).
Gregg Lemkau was appointed CEO of Michael Dell’s family office DFO Management (formerly MSD Capital) in 2021, transitioning from his role as a Goldman Sachs executive
Dept: Investment Division
Background: CFA/CAIA, 10–20 yrs in hedge funds, MFOs, or asset management
Salary: $300K–$1M+ (US/UK) | $250K–$700K (Dubai/Singapore)
Role: Designs and manages the global investment portfolio (e.g., allocating a $500M pool across 40% global equities, 20% VC funds, 30% real estate, and 10% collectibles like classic cars or art; overseeing direct private equity investments via SPVs or feeder funds).
Angela De Giacomo became CIO at eValue AG, the SFO of entrepreneur Thomas Falk, overseeing a VC portfolio of approximately 80 investments
Dept: Legal & Compliance
Background: Magic Circle/AmLaw trained lawyer, 12+ yrs in tax/trust law
Salary: $250K–$800K (US/UK) | $220K–$600K (Dubai/Singapore)
Role: Oversees legal structuring (e.g., holding companies in Luxembourg, BVI trusts, or Delaware LLCs for asset segregation), risk (e.g., liability shielding for family members or operating companies), compliance (e.g., FATCA, CRS, AML/KYC policies across entities), and multi-jurisdictional regulations (e.g., ensuring Liechtenstein foundations or Jersey trusts comply with EU/U.S. tax treaties).
SFOs commonly hire Magic‑Circle or AmLaw lawyers (i.e., Linklaters LLP or Baker McKenzie) to structure global entities (e.g., Jersey trusts, Singapore foundations), as noted in family office governance research
Dept: Finance & Tax
Background: CPA/Big 4 alum, 10–15 yrs in HNW reporting, FATCA/CRS/GAAP
Pay: $200K–$600K (US/UK) | $180K–$500K (Dubai/Singapore)
Role: Manages tax strategy (e.g., optimizing capital gains through tax-loss harvesting across jurisdictions), reporting (e.g., consolidated family-level financial statements), entity books (e.g., separate ledgers for operating companies, SPVs, and personal trusts), and global compliance (e.g., reporting under FATCA/CRS for U.S. citizens or dual nationals).
Callan Family Office recently appointed Jeffrey Getty (formerly of Key Private Bank) as “Chief Tax Strategist” to improve tax-aware investing and international structuring
Dept: Legal / Governance
Background: JD, LLM, or TEP with 10+ yrs in wealth transfer and legacy planning
Salary: $180K–$450K (US/UK) | $160K–$400K (Dubai/Singapore)
Role: Crafts family constitutions (e.g., outlining decision rights, family values, and conflict resolution mechanisms), succession blueprints (e.g., planning for generational control over a $1B family conglomerate or investment entities), and wealth transition vehicles (e.g., GRATs in the U.S., usufruct arrangements in civil-law countries, or private foundations in Austria or Liechtenstein).
Single-family offices deploy TEP-certified planners (like Susan Hartley‑Moss from Cerity Partners, USA, or Heather Flanagan from Wealthspire Advisors, USA) to build intergenerational asset transmission systems.
Dept: Philanthropy & Foundation Mgmt
Background: MA/MS in social impact; 8–12 yrs with foundations or NGOs
Salary: $150K–$350K (US/UK) | $120K–$300K (Dubai/Singapore)
Role: Designs giving strategies (e.g., 5% annual payout under U.S. private foundation rules or establishing DAFs in Canada), manages foundations (e.g., coordinating grant distributions, board meetings, and mission alignment), and aligns philanthropy with family values (e.g., ESG-aligned initiatives, education scholarships, or funding medical research in the family name).
Leading SFOs (like the Rausing family) embed philanthropy specialists (such as Jenny Santi at UBS Asia‑Pacific and Rockefeller Philanthropy Advisors teams) to manage family foundations with multi-million‑dollar grantmaking programs.
Dept: Operations / Lifestyle
Background: Ex-UHNW estate manager, concierge, or private staff lead (8–15 yrs)
Salary: $120K–$300K (US/UK) | $100K–$250K (Dubai/Singapore)
Role: Oversees travel (e.g., private jet scheduling, multi-country vacation logistics), estates (e.g., maintenance and staffing for residences in London, Gstaad, and Dubai), staff (e.g., hiring/firing private chefs, drivers, tutors), security (e.g., coordinating with family security firms or local authorities), and concierge (e.g., managing exclusive event access, medical appointments, and private shopping).
SFOs increasingly hire former UHNW estate managers (e.g., Jennifer Laurence of Luxury Lifestyle Logistics) to oversee global logistics (e.g., property staff, travel, and security) though specific hires are often confidential.
Dept: Tech / Investment Ops
Background: Fintech expert with 5–10 yrs in wealth dashboards (Addepar, PowerBI, etc.)
Salary: $150K–$350K (US/UK) | $120K–$280K (Dubai/Singapore)
Role: Builds dashboards (e.g., real-time tracking of portfolio NAV, cash flows, and alternative assets like art or wine collections), manages reporting architecture (e.g., syncing data across custodians, tax advisors, and fund managers), and supports investment visibility (e.g., flagging risk exposures across private equity, crypto, and real estate in one central system).
Single family offices are rapidly adopting wealthtech platforms (e.g., MC² Finance) and hiring cybersecurity/tech leads (like Phil Venables [former CISO at Goldman Sachs, now at Google Cloud] and Rinki Sethi [ex-CISO at Twitter, IBM, Rubrik]) to modernize reporting infrastructure
💡 Read more about the primary role of a family office and how much it costs to set it up
The SFO structure often resembles a pyramid of interlinked functional areas, with everything working toward the long-term goals of wealth preservation, capital appreciation, and generational continuity.
The key operating divisions typically include:
Handles asset allocation, investment research, portfolio construction, and performance monitoring across asset classes (public equities, private equity, real estate, VC, hedge funds, etc.).
“A good wealth manager isn’t earning their fee by beating the market, they are doing it by increasing tax efficiency, Estate planning, and by reducing errors that investors make.” u/BranTheMuffinMan
💰 How it helps SFOs get paid:
1. Avoids third-party manager fees by managing portfolios in-house
(Saves ~1–2% AUM annually or 20% carry: 🇺🇸 $1M–$5M, 🇸🇬 S$1M–S$4M, 🇩🇪 €800K–€3M on large portfolios)
2. Accesses exclusive co-investment deals that outperform standard fund allocations
(Can outperform funds by 3–8% IRR: 🇺🇸 12–18% IRR avg., 🇸🇬 10–16%, 🇩🇪 8–14%)
3. Builds bespoke strategies that align with tax residency, values, and goals
(Reduces mismatch losses; potential improvement in portfolio ROI by 1–2% annually)
4. Generates alpha through VC/private equity
(Early-stage deals can yield 3–10x returns: 🇺🇸 25–40% IRR, 🇸🇬 20–30%, 🇩🇪 15–25%)
Manages trusts, foundations, SPVs, and tax optimization; ensures FATCA, CRS, DAC6 compliance.
“Generally, most people should expect to pay between $3,500 and $10,000 for estate planning. If there's business succession planning, tax planning …” u/Dingbatdingbat
💰 How it helps SFOs get paid:
1. Cuts tax liabilities through efficient structuring (SPVs, trusts, treaties)
(Savings of 10–30% in tax exposure annually: 🇺🇸 $1M–$10M+, 🇸🇬 S$2M+, 🇩🇪 €500K–€5M)
2. Avoids costly fines and overreporting through proactive compliance
(Preserves capital and avoids €10K–€50K fines per violation in 🇩🇪, SGD 1M in 🇸🇬, $50K+ in 🇺🇸)
3. Shields privacy and limits liability
(Preserves reputational value and security of assets, particularly important in 🇩🇪 and 🇸🇬)
4. Enables capital movement across borders
(Saves 5–15% in friction/losses across investments via treaty access and local exemptions)
Manages financial tracking, audit coordination, cash flow oversight, and real-time performance analysis.
“We hired a local fee based fiduciary to review all our finances, goals, etc. and come up with a plan for investing, retirement, excess cash flow…” u/itstheschwifschwifty
💰 How it helps SFOs get paid:
1. Improves decision-making by exposing underperformers and idle assets
(Potential to recover 0.5–2% in portfolio drag annually: 🇺🇸 $500K+, 🇩🇪 €200K+, 🇸🇬 S$1M+)
2. Triggers timely exits or reinvestments
(Can improve CAGR by 1–3% through informed action)
3. Prevents fraud or asset leakage
(Protects tens of millions in diversified portfolios from internal or external abuse)
4. Quantifies risk-adjusted performance
(Builds investor-grade reporting; opens future co-investment or institutional engagement)
Monitors financial, regulatory, operational, and reputational risks; builds defense systems.
“If you're not capable of resisting the urge to play with stocks, then the premium you pay to the wealth manager is the price to save you from yourself.” u/[Anonymous]
💰 How it helps SFOs get paid:
1. Prevents loss through regulation breaches or reputational damage
(Avoids potential losses of 🇺🇸 $1M–$10M, 🇸🇬 S$1.5M+, 🇩🇪 €2M+ per event)
2. Preserves elite network access
(A clean risk profile unlocks top-tier fund invites, co-investments, and deal flow)
3. Detects financial/cyber fraud before it’s costly
(Avoids ~2–5% AUM exposure risk in high-complexity structures)
4. Builds investor-grade governance
(Improves investability of family projects and funds by institutions)
Secures intergenerational wealth transfer through legal vehicles and governance frameworks.
“You can nominate a trusted family member / friend as your Executor… they were able to do many of the Executor duties on my own and kept lawyer fees to an absolute minimum.” u/Tugboat_Tim
💰 How it helps SFOs get paid:
1. Minimizes estate/inheritance taxes
(Savings of 30–50% of estate value: 🇺🇸 $10M–$50M+, 🇩🇪 €2M–€10M, 🇸🇬 S$5M+ in tax-free transfer)
2. Prevents family litigation and asset dilution
(Preserves entire estate continuity worth hundreds of millions through documented governance)
3. Enables long-term capital compounding
(Ensures long-dated structures continue to grow AUM across 2–3 generations tax-efficiently)
4. Attracts future institutional partners via legacy credibility
(Better governance boosts credibility among banks, funds, and future co-investors)
Oversees mission-aligned giving, foundations, ESG investing, and legacy initiatives.
“It's very simple, you pay an estate planning attorney the $5,000‑$8,000 it will cost to set it up correctly.” u/zqvolster
💰 How it helps SFOs get paid:
1. Unlocks tax deductions
(🇺🇸 Up to 60% AGI deductible, 🇸🇬 250% deduction, 🇩🇪 Partial but useful foundation deductions)
2. Builds positive media and brand reputation
(Can translate to partnerships, land deals, and social capital advantages worth millions)
3. Achieves return + impact (“double bottom line”)
(🇺🇸 8–15% IRR typical in impact funds, 🇸🇬 6–12%, 🇩🇪 5–10%)
4. Attracts ESG-aligned co-investors or LPs
(Can reduce capital costs or open exclusive pools of mission capital)
Manages real estate, staffing, art, travel, education logistics, and high-end services.
“Look for a fee‑only planner that has a fiduciary duty… they should recommend ETFs [like MCSOL], give additional advice around succession planning, access to good lawyers/accountants.” u/OpenPresentation6808
💰 How it helps SFOs get paid:
1. Prevents value erosion of luxury assets
(Well-managed art/jets/yachts retain or appreciate: 🇩🇪 €100K+/year, 🇺🇸 $200K+, 🇸🇬 S$300K+)
2. Unlocks tax write-offs via asset classification
(Private residences restructured as investments or operating costs: varies by jurisdiction)
3. Frees up principal time for high-yield ventures
(Indirectly adds value by enabling principals to earn more; e.g. 🇺🇸 founder earning $10M+/yr)
4. Loyal internal staff = lower fraud, higher efficiency
(Can save 15–25% vs. relying on inconsistent outsourced vendors)
Develops heirs, leadership structures, and decision-making systems across generations.
“This is why I told my parents that I won’t do their estate planning… bring up decades‑old stories to illustrate how OP is the favorite child.” u/Wonderful_Shallot_42
💰 How it helps SFOs get paid:
1. Prepares next-gen leaders to grow wealth, not dilute it
(Ensures $100M+ estates stay intact vs. being divided/destroyed by heirs)
2. Builds stable family councils and governance bodies
(Improves investment decision quality; prevents multi-branch disputes costing €1M+ per case)
3. Creates family-run investment committees or ventures
(Enables internal capital deployment to outperform external fund investments by 2–5% CAGR)
4. Preserves continuity in family vision
(Strategic alignment prevents splintering that can reduce NAV by 20–40% long-term)
While Single-Family Offices serve one ultra-wealthy family, multi-family offices (MFOs) are built to support 10 to 50+ families, typically with net worths between $25M and $500M. Instead of being family-controlled, MFOs are professionally run firms that operate like a hybrid between a private bank, asset manager, and legal/tax advisory boutique.
Here's what their typical setup looks like:
Like SFOs, MFOs too have two main structural components:
Multi-Family Offices function like elite hybrid firms — part private bank, part asset manager, part law firm, part concierge service.
They serve 10–50+ ultra-wealthy families (typically $25M–$500M each) under one roof, so the team is built for scalability, risk control, and multi-client efficiency — not deep personalization like an SFO.
Role: Sets strategy and manages top client relationships (e.g., onboarding $100M+ families, securing fund access, or launching family platforms).
Background: Ex–private bank MD, Big Four senior partner, hedge fund COO.
Salary: $450K–$1.5M (US/UK) | $350K–$900K (Dubai/Singapore)
Delivery model: Firm-facing — oversees all families, not embedded.
Michael Zeuner, Managing Partner at WE Family Offices, oversees around 100 families and ~$20 billion AUM. He guides private capital allocation, tailoring strategies to individual family profiles.
Role: Act as personal CFOs (e.g., coordinating investment reviews, cashflows, tax filings, and trust/legal tasks for each family).
Background: 8–15 yrs in UHNW advisory, private banking, or trust/family office services.
Salary: $180K–$500K (US/UK) | $140K–$400K (Dubai/Singapore)
Delivery model: Client-facing — usually 1–2 advisors per family.
Brown Brothers Harriman recently hired Bob Ludricks, a Managing Director and Senior Relationship Manager in their New York Multi‑Family Office, to oversee ultra‑high‑net‑worth families.
Role: Build portfolios and lead co-investments (e.g., private equity feeders, direct real estate, private credit, and hedge fund access).
Background: CFA charterholders, ex–buy-side, fund research, or family office investment roles.
Salary:
Delivery model: Firm-facing with strategy overlays per client family.
At Rockefeller Capital Management, CIO Greg Fleming leads a deep investment team managing both public and private portfolios across multiple family clients under the MFO umbrella.
Role: Manage structuring (e.g., Jersey trusts, U.S. GRATs, EU holding companies), estate plans, and intergenerational governance.
Background: JD/LLM, TEP, or private client firm background.
Salary: $220K–$600K (US/UK) | $180K–$500K (Dubai/Singapore)
Delivery model: Often in-house; sometimes outsourced and white-labeled.
Stonehage Fleming, a global MFO born in 2014, boasts a full-time legal team (including Colin Bird, Managing Partner in Isle of Man) that establishes trusts across multiple jurisdictions, serves family governance needs, and handles cross-border legal structures.
Role: Execute filings and tax strategies (e.g., CRS/FATCA compliance, PFIC planning, treaty optimization for cross-border wealth).
Background: CPA/CA, ex–Big Four international tax team, 7–15 yrs.
Salary: $200K–$500K (US/UK) | $160K–$400K (Dubai/Singapore)
Delivery model: Centralized with firewalls between client accounts.
WE Family Offices internally staff CPAs (e.g., Natalia Hoyos and Santiago Ulloa) and international tax experts (Brigitte Alepin) to handle global tax strategies.
Role: Run logistics (e.g., property maintenance, medical travel, school admissions, luxury concierge, domestic staff management).
Background: Hospitality, UHNW concierge, or elite estate management.
Salary: $100K–$250K (US/UK) | $80K–$200K (Dubai/Singapore)
Delivery model: Assigned per family — especially for global or mobile households.
Versant Capital Management, with offices in Dallas and Phoenix, hired Jennifer Kirksey as Chief Operating Officer; she also spearheads wealthtech platform implementation for family reporting systems.
Role: Build wealth dashboards (e.g., Addepar, Black Diamond, Mirador), automate performance tracking, document vaults, and compliance analytics.
Background: Fintech/wealthtech engineers or BI developers with family office platform experience.
Salary: $150K–$400K (US/UK) | $120K–$300K (Dubai/Singapore)
Delivery model: Firm-facing — supports all families with secure customization.
Cresset Capital, a $55 billion MFO in Chicago, appointed Jessica Malkin as Chief Growth Officer; she leads client experience, digital strategy, and concierge initiatives to deepen engagement across wealthy families.
💡 Want to learn more about the disadvantages of family offices?
Unlike SFOs, MFO staff are not embedded within a single family.
Instead, they operate on segregated access protocols (MFO teams serve multiple clients with data walls and limited visibility into each family's affairs — while SFO teams are fully integrated and dedicated solely to one family’s needs).
They follow professional services firm dynamics (MFOs work more like law or consulting firms: standardized processes, billable hours, rotating specialists; whereas SFOs function like private departments with long-term continuity and deep family insight).
This makes MFOs more efficient (lower overheads, shared resources, and standardized workflows) but less intimate (they lack the deep-rooted, 24/7 availability and trust that comes from being solely dedicated to one family, like in an SFO).
Because MFOs are client-facing firms, their architecture is built for scale, control, and revenue generation, while still allowing personalization.
Typical divisions include:
The investment team oversees discretionary portfolios, fund allocations, and direct co-investments (e.g., PE deals with KKR or Blackstone). They also manage hedge funds, VC, and real estate assets.
“The way I would describe us is essentially a co‑op owned by our clients for our clients. We and other family office outfits tend to provide full service offerings (estate planning, tax, investment, trust servicing, bill pay, financial education, handling multiple generations of a family, etc).” u/fatFIRE
💰 How it helps MFOs get paid:
1. AUM-based fees on managed portfolios
(🇺🇸 0.50%–1.00%, 🇬🇧 0.40%–0.85%, 🇸🇬 0.40%–0.75%, 🇩🇪 0.40%–0.85%)
2. Performance fees on private deals (carry or profit-sharing)
(Standard 10%–20% globally, with hurdle rates of 6–8%)
3. Placement fees for introducing clients to private funds
(1%–2.5% of committed capital across all markets)
4. Flat retainers for custom mandates (investment strategy, portfolio design)
(🇺🇸 $50K–$250K, 🇬🇧 £40K–£200K, 🇸🇬 S$60K–S$300K, 🇩🇪 €45K–€200K)
Creates tax-efficient vehicles (SPVs, FLPs, trusts), manages regulatory compliance (FATCA, CRS, DAC6), and facilitates cross-border capital flow.
“I spent 4 years at a multi‑family office and loved it. We did tax, charitable, and estate planning. Investments were handled by the ...” u/PsychologicalAd243
💰 How it helps MFOs get paid:
1. Project-based fees for setting up legal/tax structures
(🇺🇸 $15K–$50K+, 🇬🇧 £10K–£40K+, 🇸🇬 S$20K–S$80K+, 🇩🇪 €12K–€50K+)
2. Ongoing retainers for advisory services (compliance, structuring, planning)
(🇺🇸 $25K–$100K/year, 🇬🇧 £20K–£75K, 🇸🇬 S$30K–S$120K, 🇩🇪 €25K–€90K)
3. Bundled premium tiers in family office service packages
(Typically adds $50K–$200K+ to annual MFO revenue per client)
Develops long-term governance, family constitutions, next-gen education, and succession plans to ensure cohesion.
“Generational wealth loses against each other but wins against us [the average person].” u/Gorge2012
💰 How it helps MFOs get paid:
1. Fixed planning fees for family charters, governance structures, or succession plans
(🇺🇸 $25K–$100K, 🇬🇧 £20K–£80K, 🇸🇬 S$35K–S$120K, 🇩🇪 €25K–€90K)
2. Tier-based ongoing support (family meetings, next-gen training, constitutions)
(🇺🇸 $50K–$200K/year, 🇬🇧 £40K–£160K, 🇸🇬 S$70K–S$250K, 🇩🇪 €60K–€200K)
3. Premium positioning for relationship stickiness
(Often used to justify top-tier pricing and long-term client retention)
Manages charitable giving strategies, foundation setup, and impact investing for legacy preservation.
“Philanthropy [also] exists as a way to launder reputation to the rich in a morally bankrupt society.” u/LateStageCapitalism
💰 How it helps MFOs get paid:
1. AUM-based admin fees on charitable portfolios
(0.25%–0.50% annually across 🇺🇸 🇬🇧 🇩🇪 🇸🇬)
2. Project-based consulting on giving strategies, grantmaking, and foundation design
(🇺🇸 $20K–$75K, 🇬🇧 £15K–£60K, 🇸🇬 S$30K–S$100K, 🇩🇪 €20K–€70K)
3. Bundled legacy retainers for family-aligned ESG, giving, and brand enhancement
(Annual revenue: 🇺🇸 $30K–$120K+, often included in broader mandates)
Manages logistics like payroll, vendor coordination, reporting, concierge services, and real estate/foundation admin.
“I am trying to figure out the best option to get it organized and administered smoothly going forward. Bill pay, bookkeeping, banking, logistics, property mgmt, insurances, etc. … More just pure back‑office type assistance.” u/fatFIRE
💰 How it helps MFOs get paid:
1. Monthly or annual retainers for ongoing admin and operations
(🇺🇸 $5K–$25K/month, 🇬🇧 £4K–£20K, 🇸🇬 S$6K–S$30K, 🇩🇪 €5K–€22K)
2. Hourly consulting for ad hoc needs like onboarding staff, contract reviews, or relocation
(🇺🇸 $200–$800/hr, 🇬🇧 £150–£600/hr, 🇸🇬 S$250–S$900/hr, 🇩🇪 €180–€750/hr)
3. “White-glove” service tiers for VIP clients with extensive complexity
(High-end bundled service plans: 🇺🇸 $100K–$500K/year, 🇸🇬 S$150K–S$600K, 🇩🇪 €100K–€400K)
Family offices (single or multi) are powerful tools for preserving and growing wealth, but come with steep entry barriers (e.g., $100M+ for SFOs, $25M–$50M for MFOs), complex setups (trusts, offshore vehicles, cross-border tax compliance), and high running costs (staffing, legal, investment teams — often millions annually).
But today, you don’t need a dedicated CIO or full concierge team to secure your financial future. What matters isn’t owning the structure; it’s accessing the benefits: long-term vision, smart diversification, efficient tax planning, and multi-generational protection.
That’s why we are proud of MCSOL ETF/ETP.
Designed for modern investors who want the power of a family office without the cost, MCSOL offers expertly managed, blockchain-native strategies that mirror how the ultra-wealthy think — using smart contracts instead of staff, and automation instead of administration.
Read more about what ETFs/ETPs are in crypto and their difference.
A foundation is a nonprofit entity created exclusively for charitable purposes, with a lean structure typically consisting of a board of directors, a foundation director, program officers, and legal advisors. It operates under strict regulatory oversight and must follow specific distribution rules (like the 5% rule in the U.S.).
A family office, on the other hand, is a private wealth management structure designed to serve the financial, legal, tax, and lifestyle needs of a single (SFO) or multiple families (MFO). While philanthropy may be a key service in both, it is only one division within a family office, whereas it's the core mission of a foundation.
A governance typology study by Lungeanu & Ward (2012) found that third-generation family foundations (typically managed by the grandchildren of the founder) often suffer from reduced cohesion and strategic clarity, unlike first-generation foundations, which are more unified and mission-focused
Structurally, family offices have internal divisions such as investment management, tax planning, estate structuring, and concierge services, with specialized full-time staff (CIOs, lawyers, accountants). However, foundations maintain a mission-driven governance model with limited operational departments (aka no investment mandate beyond managing endowment fund).
A holding company is a passive legal entity that exists primarily to own and control other companies or assets. Its structure is typically limited to a board, a legal registration, and perhaps a finance officer (i.e., it doesn’t manage wealth, it just shelters it). A family office, by contrast, is an active service platform, especially in the case of an SFO, which might oversee dozens of entities including holding companies.
The SFO will have dedicated teams for legal structuring, asset management, compliance, and reporting, often with real-time dashboards and audit-ready documentation. In MFOs, the office may administer the holding companies of various families, but still through a centralized legal and compliance division.
The University of Vigo study (Rivo López et al., 2011) found Spanish family offices operate in three tiers: service-only, service + investment, and investment-only; unlike holding companies, which are passive legal shells with no active wealth management.
The key structural distinction is that holding companies hold assets with minimal infrastructure, while family offices manage and optimize those assets through deep internal teams.
A fund is a pooled investment vehicle (like a private equity or hedge fund) with a standardized structure: general partners (GPs) who manage, and limited partners (LPs) who invest capital. The organization is deal-driven, with analysts, portfolio managers, and compliance staff focused solely on performance. A family office, however, is not product-focused; it is a service entity built to protect and grow private family capital.
An SFO has an internal investment division with CIOs, PMs, and due diligence analysts, but it manages only the family's money and makes decisions aligned with long-term goals, not external return targets. MFOs may offer access to co-investment opportunities and pooled vehicles, but still operate with segregated teams for each family and provide legal, estate, and reporting services that funds do not.
Graziela Fortunato et al. (2025) reported that MFOs are increasingly adopting behavioral finance models to structure portfolio decisions, prioritizing long-term trust, communication, and behavioral awareness over traditional fund benchmarks.
Structurally, funds are single-purpose financial machines, whereas family offices are multi-layered wealth platforms with verticals beyond investing.
A business exists to generate income through commercial activity. It has departments like sales, marketing, operations, and customer service, with a focus on revenue generation and scalability. A family office, however, is built to protect, allocate, and manage existing wealth, not to earn it from the market.
In an SFO, the organizational chart mirrors that of a boutique bank and law firm combined: it includes divisions for investment management, legal, tax, reporting, succession planning, and lifestyle coordination. An MFO looks more like a traditional firm with department heads, service lines, and client teams, but it still doesn’t operate to sell products or services externally. Instead, it earns fees by providing internalized professional services to ultra-high-net-worth families.
In Brazil, Orth et al. (2014) showed that 92% of single-family offices were created post-business exit to separate personal/family wealth from company finances and enhance tax optimization and succession planning.
Hence, structurally, a business serves customers and a family office serves itself, often managing the wealth generated from past business exits.
A private bank is a commercial institution offering financial services like asset management, credit, custody, and estate planning. The focus is typically on selling financial products. It’s structured with relationship managers, product desks, compliance teams, and revenue quotas.
A family office, particularly an SFO, is the inverse: it may hire former bankers, but it buys services, doesn’t sell them. Its structure includes an internal CIO, in-house counsel, tax planners, and operational staff, all acting purely in the family’s best interests. MFOs resemble private banks superficially, with client service teams and investment platforms, but they offer a wider scope (e.g., concierge, family governance, legacy planning) and operate on a fee-for-service model rather than commission-based sales.
According to (PWC, cited in Kenyon-Rouvinez & Park, 2020), 75% of UHNW families consider private banks’ incentives "misaligned" due to their sales-based revenue models, prompting a shift toward family offices for fiduciary neutrality.
The fundamental structural difference is that banks are product distributors with profit goals, while family offices are client-controlled infrastructures with loyalty to the wealth owner.
Wealth management firms offer financial advice, usually through personal financial advisors or planners, and often outsource specialized functions like legal or tax. Their structure is typically flat: a lead advisor, a client associate, and access to external partners.
In contrast, an SFO has fully built-out internal divisions for every major function, including investment, legal, tax, estate, philanthropy, education, and concierge. MFOs bridge the gap by offering many of these services in-house but across multiple clients, supported by a structured team of CIOs, RMs, tax/legal heads, and operations officers. The key difference in structure is that wealth managers suggest, but family offices implement.
Kenyon-Rouvinez & Park (2020) from the International Institute for Management Development (IMD) found that family offices formally train the next generation, unlike most wealth managers who rarely include family governance education.
Thus, family offices operate as a complete, vertically integrated institution managing all aspects of family capital, while wealth managers are typically a single touchpoint with multiple outsourced backends.
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