What is the difference between single family and multi-family offices?

Families managing significant wealth often face a key decision: create a single-family office, join a multi-family office, or partner with a private bank.

Single-family offices offer maximum control and customization but can be costly and complex. Multi-family offices provide personalized service with shared resources and efficiency. Private banks deliver a wide range of services—advisory, investment, credit, trust, and more—backed by strong financial stability, deep expertise and innovative technology. They offer economies of scale and flexible engagement, though with less direct control than family offices. Understanding these differences helps families choose the best fit for their unique needs and goals.

What is a single family office?

A single-family office is a  privately owned and managed organization created to serve one family’s financial, administrative and strategic needs. This model is designed to centralize oversight, streamline decision-making, and provide a tailored suite of services that reflect the family’s values, goals and legacy plans. A single-family office may take different legal forms—from simple LLCs to more complex models.

Staffing typically includes professionals dedicated to investment management, financial administration, accounting, and legal and tax matters. Some families also employ specialists in philanthropy, technology or lifestyle management, depending on their requirements. The structure is highly adaptable, allowing families to build in-house expertise or selectively outsource functions. Many smaller single-family offices rely on a hub-and-spoke approach whereby a small team of direct employees oversee and manage services from a variety of third-party providers including outside investment managers, accountants and legal professionals.

Single-family offices are most common among families with over $100 million in assets and complex financial lives, often spanning multiple generations and jurisdictions. The ability to customize every aspect of the office—from reporting frameworks to governance policies—makes this model particularly attractive to those seeking maximum privacy and control.

What is a multi-family office?

A multi-family office delivers many of the same core services as a single-family office, but through a shared infrastructure that supports several families. Rather than constructing a dedicated entity, families access a platform with established systems, experienced advisors, and institutional-grade resources. It’s important to note that many registered investment advisors (RIAs) are marketed as “multi-family offices.” While these firms may provide investment and wealth planning advice, they often lack the deep resources, lending capabilities, and robust balance sheet that a private bank platform can offer.

This model offers a high level of professional support, including investment oversight, reporting, planning, and administrative coordination. While the experience is not as individually tailored as a single-family office, multi-family offices provide meaningful personalization and flexibility, often at a lower cost and with less operational responsibility.

Multi-family offices are well-suited for families that value coordinated expertise and efficiency, but prefer not to manage the complexities of staffing, compliance and technology on their own.

Benefits of a single-family office

A single-family office provides several meaningful advantages, particularly in customization, confidentiality and control:

• Customization: Every process, policy and service is tailored to the family’s unique needs and preferences, ensuring a truly personalized approach.
• Confidentiality: Sensitive information and decision-making remain within a closed circle, minimizing external exposure and safeguarding privacy.
• Control: The family retains direct oversight over all aspects of wealth management, enabling long-term alignment in investment philosophy, governance and family values across generations.
• Exclusive resources: All staff and systems are dedicated solely to the family, ensuring focused attention and responsiveness.

Factors to consider with a single-family office

While the single-family office model offers unmatched customization, it also comes with important responsibilities:

• Significant investment: Building and maintaining a single-family office requires a substantial financial commitment—typically between 1% and 2% of assets under management (AUM). Actual costs will vary based on the office’s scope (administrative, investment-focused, or full service), number of staff, and the complexity of assets overseen.
• Talent management: Families must oversee recruitment, retention and compensation for employees, as well as manage vendor relationships.
• Governance structure: Clear policies and decision-making frameworks are essential to ensure effective management and succession planning.

Families should carefully assess their readiness to invest the time, resources and leadership required to sustain a single-family office.

Benefits of a multi-family office

Multi-family offices provide a compelling alternative for families seeking professional support with less administrative burden:

• Shared expertise: Access to seasoned professionals and robust systems without the need to build them independently.
• Cost sharing: Expenses are distributed among multiple families, making the model more accessible.
• Operational simplicity: The platform typically manages compliance, reporting and technology, reducing day-to-day oversight for families.
• Service flexibility: Families can select the level of support that matches their needs and adjust as circumstances change.

Factors to consider with a multi-family office

Despite their advantages, multi-family offices may present some tradeoffs:

• Limited customization: Services are tailored, but not to the same degree as a dedicated office.
• Shared governance: Families operate within an established framework, which may limit control over certain processes.
• Variable specialization: The depth of expertise and service offerings can differ across providers, and some families may require additional external advisors.
• Operational considerations: Many RIAs marketed as multi-family offices must custody assets with third parties, often lack in-house fiduciary capabilities, and may introduce additional layers of fees.

For many, the benefits of scale, efficiency, and reduced management responsibilities outweigh these limitations.

J.P. Morgan Private Bank can help decide if a family office is right for you

Selecting the right family office structure is a nuanced process, shaped by your family’s complexity, priorities and vision for the future. J.P. Morgan Private Bank partners with families at every stage, helping them assess their needs, compare options, and design governance and investment frameworks that support long-term success.

Our team collaborates with clients to provide insights, resources and guidance—empowering families to make informed choices about structure, oversight and the services that best advance their objectives.

Contact us today to learn how we can support your family's financial goals and create a lasting impact for generations to come.