Building wealth is a highly personal journey, and as Americans grapple with the ever-changing economy, it becomes more critical to have an experienced advisor helping you manage your wealth. For some, wealth comes naturally either through generational inheritance, retiring from a long-term career, or being an entrepreneur who has successfully sold a business.
However, for others, it may be something that comes overnight – such as becoming an early partner of an acquired start-up. Regardless of how an individual becomes wealthy, a multi-family office (MFO) can ensure that your assets are built to sustain multiple generations.
Who an MFO Serves
As of 2025, the top 1% of American individuals have an average net worth of over $11.6 million. This elite bracket controls approximately 30% of the nation’s entire wealth. To maintain their status, ultra-high-net-worth individuals and families must lean on a diverse balance sheet that includes private investments, real estate, and alternative investments that are not tied to public stocks and bonds.
An MFO is beneficial for these families that are looking to manage complex financial dynamics that align with the goals of multiple generations – looking towards the long term. They are private wealth advisory firms that cater to ultra-high-net-worth families with their financial, personal, and legacy needs at the front of mind. While doing so, they provide access to competitive investment opportunities, tax and estate planning, charitable giving, and help with family governance. MFOs are more than wealth managers; they are long-term partners helping families manage their entire balance sheet.
If one or more of the following five signs resonate with your situation and desires, it is time to consider an MFO.
1. Gaining Financial Literacy
Financial literacy is critical to setting and reaching financial goals. If you have yet to establish goals for current or future wealth, then an MFO could be right for your financial circumstances. MFOs work directly beside you to develop a comprehensive plan that addresses both short-term liquidity needs and long-term wealth goals. Additionally, they can help you monitor and stay on track with your plan – evolving it as needed. MFO advisors provide comprehensive reports and analysis to alleviate the stress of managing your balance sheet, promoting peace of mind.
The process of converting the windfall from selling a lucrative business worth tens of millions of dollars not only takes time but is extraordinarily complex. Much of the planning that needs to be done has to be put into motion well before a transaction happens. Otherwise, a seller could forfeit millions in taxes.
Complicating matters is that many sellers are ostensibly mass affluent up to that point, rich on paper but cash poor, never having to deal with things like making generational wealth last, intricate tax strategies and preserving enough capital to tackle their next set of goals.
MFOs specialize in providing comprehensive financial planning services, including those that deal in the complexities of a liquidity event, from risk exposure to tax management and beyond.
2. Accessing Wide Investment Ranges
MFOs can manage typical portfolios that include stocks, bonds, cash, and more traditional assets that are in the public market. Greater wealth, however, requires exposure to additional types of private investments. These can include venture capital, private credit, and private equity. MFOs often have relationships that provide their clients with such opportunities – in most cases highly tailored to their specific needs and at attractive entry points.
Even as the retail market has seen an influx of alternative investment providers, most wealth managers have limitations in the quality of investments they can access. And it should be noted that many are incentivized to only provide products that they can benefit from. Unlike a big bank, an MFO has fewer limitations on investment types and products they can support.
3. Maintaining and Building Generational Wealth
One of the major setbacks when trying to grow generational wealth is a lack of communication and coordination between family members. MFOs can oversee family governance issues and act as an impartial third-party facilitator.
An MFO works closely with you and your family regarding the broader family dynamics to ensure everyone’s interests and goals are in mind while keeping conflicts minimal. This mitigation of conflict helps wealth stay in the family from generation to generation.
Wealth can quickly be lost from generation to generation, especially if there is a lack of financial literacy among those who will inherit their family’s wealth. An MFO empowers families with the education they need to ensure their wealth remains intact or, better yet, grows for generations to come.
4. Navigating a Major Liquidity or Business Event
The process of converting the windfall from selling a lucrative business worth tens of millions of dollars is not only time-consuming but also extraordinarily complex. Much of the planning should be initiated well before the transaction occurs. Otherwise, a seller could forfeit millions in taxes.
Complicating matters is that many sellers are theoretically mass affluent up to that point. They are rich on paper but cash poor, never having to deal with things like making generational wealth last, intricate tax strategies, and preserving enough capital to tackle their next set of goals. MFOs specialize in providing comprehensive financial planning and managing risk exposure through tax management and more through events such as the sale of a business.
5. Becoming a Changemaker
For many successful families, wealth is a means to an end – and the goal isn’t tangible, like buying another house, joining an additional country club or pursuing some other luxury. Instead, they want to make a difference and support causes that align with their values that they hold close.
Experienced MFOs help in this area by doing everything from performing due diligence on charitable organizations to structuring investments and donations for maximum impact (without sacrificing returns). MFOs can arm clients with a strategic philanthropy plan that aligns with their goals and ensures what they give has a meaningful impact.
Find the Right MFO
The economic landscape is dynamic, complex and fraught with challenges, which is why working with a multi-family office is a compelling choice for those looking for comprehensive, high-touch and effective wealth management. Whether you want to be a pillar in impact investing or are looking to solidify your wealth for generations to come, an MFO can get you on track to set and meet consistent financial goals.
If, after reading this article, you believe a multi-family office might be right for you, contact Caprock to learn more.
©2023 Caprock. All rights reserved. The Caprock Group, LLC (“Caprock”) is an SEC Registered Investment Advisor. This article is intended to provide general information about Caprock and is not a solicitation or offer to sell investment advisory services except in states where we are registered or where an exemption or exclusion from such registration exists. All content is for informational purposes only and may not constitute a complete description of available investment services. Registration with the SEC does not imply a certain level of skill or training.
