Wealth can happen in a flash. From selling a business to receiving an inheritance to going pro, life can make millionaires and even billionaires overnight. Facing tremendous opportunity, responsibility, and complexity, families in this position—newly minted members of the high-net-worth—are often left wondering how to manage it all. If you find yourself in this position, navigating substantial wealth for the first time, you may be asking who can be trusted to act in your best interests. A multi-family office may be the answer.
At a Glance
In short, a multi-family office is a way for families to manage financial complexity while aligning long-term goals across generations. They are private wealth advisory firms that help ultra-high-net-worth families with their financial, personal, and legacy needs, while also providing access to highly sought-after investments, tax and estate planning, charitable giving strategies, and family governance. Multi-family offices are designed for families who want expert advice, long-term partnership, and the confidence that comes from having a cohesive strategy across their entire balance sheet—without the costs of building and staffing a single-family office team themselves.
Who Needs a Multi-family Office?
Families who work with an MFO aren’t looking for simple investment advice. They seek partnership at a major inflection point in their lives. For example:
- A business owner selling their company may work with an MFO to help manage liquidity, tax strategies, and long-term planning.
- A family inheriting generational wealth for the first time may turn to an MFO for guidance on governance, investment oversight, and responsible stewardship.
- A couple seeking to preserve wealth for their children and future generations might engage an MFO for support in managing the financial aspects of their estate and trusts.
- A philanthropist building a structured giving strategy can benefit from an MFO’s experience in charitable planning, foundation management, and impact investing.
- A newly wealthy individual following a liquidity event, such as an IPO, may look to an MFO for comprehensive wealth planning and tax mitigation strategies.
One thing they all have in common is that they aren’t looking for simple investment advice—they’re looking for clarity, partnership, and purpose.
Why Do Multi-Family Offices Exist?
Once a family reaches a certain level of wealth, traditional banks and financial services become limiting or too narrow in scope. An MFO solves this by handling the full financial picture.
In addition to managing portfolios, an MFO provides integrated financial oversight, customized investment access beyond public markets, support for generational transition and philanthropy, and coordination across legal, tax, and estate matters. They offer comprehensive strategy, alignment, and stewardship, all under one roof.
What Does a Multi-Family Office Do?
An MFO typically provides:
- Investment oversight and bespoke portfolio management across public and private markets, including direct investments, funds, real estate, and alternative investments.
- Estate and tax coordination, including strategic planning with accountants and estate attorneys to minimize taxes and preserve multi-generational wealth across generations.
- Philanthropy and impact for structuring charitable giving and foundations and aligning impact investing strategies with family values.
- Consolidated reporting to provide a clear view of financial holdings, performance, and risk across the entire balance sheet.
- Family governance to support legacy planning, preparing heirs, and fostering healthy communication around the responsibility of wealth.
What Is the Best Family Office Structure for Multi-Generational Wealth?
There is no one-size-fits-all solution for multi-generational wealth. For many families, an MFO – versus a Single-Family Office – presents the most sustainable and strategic model to preserve and grow wealth for decades to come.
The best structure will depend on the complexity of the family’s wealth, their liquidity needs, philanthropic ambitions, and the involvement of future generations in managing that wealth. For families under the $1 billion threshold, an MFO provides access to resources typically reserved for billionaires.
The model provides continuity by engaging a seasoned team that can work across generations to ensure core values and strategies are upheld. It offers scalability, adapting to the evolving needs of a growing family and increasing complexity. MFOs also support education and governance by helping families develop legacy plans, implement governance structures, and prepare the next generation for responsible wealth management. Pooled resources and scale unlock access to private market investment opportunities and institutional-quality oversight.
The right structure supports long-term thinking, integrates personal values with financial strategy, and removes administrative burdens so families can focus on what matters most.
The MFO Advantage: More Than Just Investment Advice
When comparing an MFO vs. a big bank or private wealth manager, breadth of service and fiduciary alignment are critical distinctions.
A true MFO is independent, not tied to proprietary investment products or incentives. As a fiduciary, an MFO is legally and ethically committed to act in your best interest. It’s capable of providing a holistic investment strategy with tax, estate, and family planning. And it’s aligned, working with families through every stage of life, over generations.
Caprock’s strategy isn’t driven by conflicting revenue streams or outside incentives. The team is structured to focus solely on the long-term goals you have for yourself and your family.
When to Start Exploring a Multi-Family Office
If you have more than $10 million in investable assets, now is the time to engage a multi-family office to support the preservation and management of your wealth.
For those anticipating their windfall, timing matters. Early planning leads to better results.
Caprock can help you prepare by structuring assets pre-liquidity to maximize tax efficiency and creating a plan for deploying capital across personal, philanthropic, and investment goals.
Dedicated Wealth Management for Complex Wealth
Whether you’re entering a new phase of life after selling a business, the recipient of a major inheritance, or thinking about how to protect and grow what you’ve earned, choosing an MFO could be one of the most important decisions you make.
Managing substantial wealth is about more than financial advice and return on investment. At Caprock, we bring intention. We bring clarity to the complex. We align wealth with values to create an enduring legacy.
