Single Family Office (SFO)
A single family office (SFO) is a private organization that manages the wealth of one ultra-high-net-worth family.
Allocator relevance: High-variance allocator type—decision authority and mandate are often personalized, so mapping the decision chain and preferences is essential.
Expanded Definition
SFOs exist to preserve and compound one family’s capital across generations. They may run professional investment teams or remain principal-led. Compared to institutions, SFO mandates can be less formal but still consistent in behavior (risk tolerance, liquidity preferences, sector posture). SFOs can invest directly, through funds, or via co-investments, often with flexible timelines and bespoke criteria.
For fundraising and targeting, the challenge is not finding “a contact”—it’s understanding who decides, who filters, and what “fit” actually means for that specific family.
How It Works in Practice
SFOs source opportunities through networks, managers, banks, and advisors. Decisions may happen through a CIO/IC process or be principal-driven. Reporting expectations vary widely.
Decision Authority and Governance
Governance ranges from informal (principal decides) to institutional (IC, IPS, charters). Role validation and recency are critical because staff changes can completely change routing.
Common Misconceptions
- SFOs always decide quickly.
- SFOs have uniform mandates like institutions.
- The “investment director” is always final authority.
Key Takeaways
- SFOs are relationship- and governance-dependent.
- Decision chain mapping matters more than org charts.
- Recency and verification prevent mis-targeting.