A family that decides to organise its wealth must choose between building its own structure or sharing one with other families. The decision depends less on the size of the wealth than on its complexity, the control desired and the family’s involvement.
Having decided it needs a structure to manage its wealth, a family faces a second choice: set up its own family office, with a dedicated team, or join a multi-family office serving several families. Both models do the same essential work. They differ in cost, control and how the family relates to those managing its wealth.
The single family office
Advantages
- Full control over strategy, team and priorities.
- Maximum confidentiality. Nobody outside the family and the team knows the wealth.
- Complete personalisation, including less usual services — managing collections, supporting philanthropic projects, the family’s personal affairs.
- Alignment: the team works only for the family.
Disadvantages
- High fixed cost, which is only diluted with very large wealth.
- Difficulty recruiting and retaining qualified professionals in a small structure.
- Risk of isolation: without comparison with other families, it is harder to tell whether things are being done well.
- Demanding governance: someone in the family has to oversee the team.
The multi-family office
Advantages
- Shared costs and therefore access to professionals and systems a single family could not justify.
- Access to investment opportunities arising from the scale and network of several families.
- Accumulated experience with similar situations in other families.
- Flexibility: you can start with a narrow scope and broaden it.
Disadvantages
- Less control and less personalisation.
- Possible conflicts of interest, particularly if the multi-family office belongs to a bank or earns commission on products.
- Attention shared with other families.
How to choose
- Size and complexity. Very large and complex wealth — several companies, many properties, multiple jurisdictions — more readily justifies a dedicated structure.
- Control desired. Families that want to decide everything prefer their own model; families that want to delegate prefer the shared one.
- Family involvement. A single family office needs someone in the family with the time and competence to oversee it.
- Independence. In either model, it is worth understanding how the managers are paid and whether they have products of their own to place.
A gradual path
Many families start with a multi-family office or an independent adviser and, as the wealth and complexity grow, build their own structure — sometimes keeping the multi-family office for specific functions. It is not a decision for ever, and starting with the lighter model reduces the risk of building an expensive structure before knowing exactly what it is needed for.
GestInvest helps families choose and set up the right model, and acts as an independent adviser on investment and liquidity decisions. Read more about family office services or about when a family office makes sense.
Frequently asked questions
Can a multi-family office be independent of banks?
Yes. Some multi-family offices are independent and paid only by the families; others are linked to financial institutions. It is worth knowing which is the case.
Can we change model later?
Yes. It is common to start in a shared model and move to a dedicated structure, or the reverse, as the family changes.
What services should we require in any model?
A consolidated view of the wealth, a written investment strategy, regular reporting and independence in selecting products and managers.
