A single family office (SFO) is an organisation dedicated to one family; a multi-family office (MFO) serves several families and shares costs across them. Neither is objectively better — the choice depends on asset scale, desired control and family stage. This guide provides a practical decision framework.
Three-dimension comparison
| Dimension | Single family office | Multi-family office |
|---|---|---|
| Clients served | One family exclusively | Multiple families |
| Annual cost | About 0.5%–1% of assets | About 0.2%–0.5% of assets |
| Typical asset scale | Usually above US$100 million | US$10–100 million range |
| Control | Full autonomy, dedicated team | Shared team, standardised |
| Entry barrier | High — build team and compliance | Low — subscribe and start |
| Privacy | Highest | High but shared |
Where the cost gap comes from
SFO costs concentrate in the team: the year-round payroll of a CEO/CIO, investments, legal and tax, and family relations functions, plus office and compliance spend, typically consuming 0.5%–1% of investable assets. An MFO spreads these costs across families, charging 0.2%–0.5%, at the price of standardised, less bespoke service.
A three-question framework
- Are investable assets above US$100 million? If so, the SFO scale economics start to work.
- Is the family willing and able to run a professional team? An SFO is effectively managing a small company.
- How bespoke are the needs? Highly customised requirements — complex cross-border structures, foundations — favour an SFO.
The transition path: MFO first, SFO later
For families between US$10 million and US$100 million, the pragmatic route is to start with an MFO to build governance experience and reporting, then spin up an SFO when scale justifies it. The path is well trodden: the global family office market is projected to grow at a 7.1% CAGR from 2026 to 2035 (Research Nester), and service supply is expanding in step.
FAQ
Does Hong Kong cap or gate SFOs?
There is no cap on setting up an SFO. For residency, families can consider CIES — its residential threshold fell to HK$30 million in 2025. The Singapore route is 13O (S$20 million) or 13U (S$50 million).
What is a virtual family office?
A virtual family office assembles investment, legal and tax services through outsourcing instead of hiring a full-time team — cheaper, and suited to families just starting or preferring a light structure.
Further reading
For hands-on setup, see how to set up an SFO in Hong Kong; for jurisdiction choice, see the Hong Kong vs Singapore comparison; and for joining China Family Office, see the membership guide.