Multi-Family Office (MFO)
A multi-family office (MFO) is an organization that provides investment management and wealth services for multiple families.
Allocator relevance: Often aggregates significant capital but may have diversified mandates and layered decision chains that differ from single-family offices.
Expanded Definition
MFOs vary widely—from boutique advisory firms to large platforms resembling private banks. They may manage discretionary portfolios, advise on manager selection, and coordinate access to private markets. Because they serve multiple families, their investment process can be more standardized than an SFO, but decision authority may sit with committees, CIOs, or individual family clients depending on the service model.
For targeting, it’s essential to distinguish between discretionary (the MFO allocates) and advisory-only (the family decides).
How It Works in Practice
MFOs allocate across asset classes, offer model portfolios, and may run manager diligence and platform offerings. Some operate pooled vehicles; others allocate separately per client.
Decision Authority and Governance
Authority can be centralized (CIO/IC) or distributed (client-specific approvals). Role validation is critical to avoid pitching someone who cannot allocate.
Common Misconceptions
- MFOs behave like SFOs.
- MFO contacts always control capital.
- An MFO mandate is uniform across clients.
Key Takeaways
- Discretionary vs advisory determines true decision authority.
- Mandates can vary by client.
- Governance mapping prevents mis-targeting.