Allocator Type
Multi-Family Office (MFO)
A Multi-Family Office manages investment and wealth services for multiple UHNW families, often acting as an allocator and gatekeeper to private markets. Allocators and managers evaluate MFOs through mandate clarity, decision authority, and due diligence standards.
MFOs pool expertise, sourcing, and diligence across multiple families. From a GP’s perspective, MFOs vary widely: some are centralized allocators, others are advisory with family-by-family decision-making.
How allocators define MFO behavior
Segmentation includes:
- Decision model: centralized IC vs family-by-family opt-in
- Product access: direct funds, FoFs, co-invests, SMAs
- Risk posture: preservation vs growth, liquidity preference
- Diligence rigor: process depth, third-party research reliance
- Speed and governance: timeline, approval layers, legal requirements
Allocator framing:
“Is there a single decision-maker—and what is the diligence threshold?”
What slows decisions
- Unclear decision authority
- Fragmented family mandates
- Long legal/compliance cycles without clear milestones
- Limited transparency on how allocations are decided
Key allocator questions
- Who owns the decision and what is the timeline?
- Is the ticket centralized or per-family?
- What diligence framework is used and what blocks approval?
- How is liquidity handled and reported?
Key Takeaways
- MFOs are not uniform; governance model matters
- Clear decision authority determines speed and close probability
- Match quality beats mass outreach