{"id":124388,"date":"2025-09-06T14:07:23","date_gmt":"2025-09-06T14:07:23","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/124388\/"},"modified":"2025-09-06T14:07:23","modified_gmt":"2025-09-06T14:07:23","slug":"so-you-want-to-run-a-multi-family-office","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/124388\/","title":{"rendered":"So, you want to run a multi-family office?"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Advisors launching an MFO need to be aware that their role will be multifaceted and more like a quarterback who guides other advisors.sommart\/iStockPhoto \/ Getty Images<\/p>\n

Multi-family offices (MFOs) are thriving as high-net-worth families seek personalized advice on how to manage their wealth and preserve their legacy. <\/p>\n

While single-family offices (SFOs) are reserved for the wealthiest, MFOs offer similar investment management, estate, tax and philanthropic services for multiple families at a lower cost than SFOs.<\/p>\n

For advisors, the payoff can be significantly higher compensation. But the role comes with big demands: a higher level of customer service, an innate sense of what families need, greater sophistication, and lots of discretion. <\/p>\n

Plus, advisors launching an MFO need to be aware that their role will be multifaceted and more like a quarterback who guides other advisors.<\/p>\n

\u201cThe person at the MFO is a co-ordinator who brings all these outside people around the table and makes sure everybody knows exactly what the client wants,\u201d says Patricia Saputo, executive chairperson and strategic advisor to Crysalia Inc., a family office consultancy in Montreal.<\/p>\n

And it\u2019s all about going the extra mile. \u201cAdvisors have to understand that when they\u2019re on vacation, sometimes some families will say, \u2018No, you have to be on 24\/7 because we need you,\u2019\u201d she says.<\/p>\n

Amanda Bassin, president and founder of Persuit Group, a Toronto-based executive search firm that helps find talent for MFOs, says evolving into an MFO is a much larger shift than many expect.<\/p>\n

\u201cIt\u2019s not just about managing capital \u2013 it\u2019s about helping manage the full family system,\u201d she says. \u201cIt\u2019s a practical shift, but more than anything, it\u2019s a mindset shift.\u201d<\/p>\n

How to pivot to an MFO<\/p>\n

The families served by MFOs tend to have complex needs: liquidity events, intergenerational planning, governance and philanthropy, Ms. Bassin says. Those needs require a sophisticated set of skills.<\/p>\n

\u201cThe MFO model is best suited to advisors who are holistic in their thinking, deeply relationship-driven, and collaborative by nature,\u201d says Martha Simmons, chief administrative officer and chief compliance officer at Forthlane Partners, a Toronto-based MFO.<\/p>\n

For advisors who feel they have that set of skills and want to move toward an MFO model, here are a few things to keep in mind.<\/p>\n

Set ground rules: Many advisors who start MFOs fail to set ground rules around access, Ms. Saputo says, and end up being on call around the clock. She suggests negotiating with clients at the beginning of the relationship to manage expectations and avoid misunderstandings. <\/p>\n

Communicate constantly: Each client has their own goals and needs. Establishing those aims through frequent check-ins with families is key. <\/p>\n

MFO advisors also have to ensure all advisors on the team are in the loop. <\/p>\n

\u201cWhen you\u2019re having meetings and estate planning and professional planning, you bring all these outside people around the table and make sure that everybody knows exactly what the client wants,\u201d Ms. Saputo says.<\/p>\n

Determine your focus: Your goals as an MFO will shape the type of team you hire. \u201cIf you are seeking a full-service MFO, a very broad team will be required,\u201d Ms. Simmons says. <\/p>\n

\u201cIf, on the other hand, you are more focused on a single aspect, such as investing, you will need a team with considerable depth in that area, including non-traditional asset classes,\u201d she adds. <\/p>\n

Stay current: Advisors have to stay current and constantly be up to date on political events, investment trends, real estate developments and changing regulations, Ms. Saputo says, as many clients rely on family office advisors for guidance. <\/p>\n

Outsourcing: When starting an MFO, outsourcing can be an effective way of bringing in expertise at a fraction of the cost. <\/p>\n

\u201cYou don\u2019t need to hire a 15-person team out of the gate \u2013 but you do need to know where to invest early, and exactly where to bring in trusted partners,\u201d Ms. Bassin says. <\/p>\n

Estate, tax and philanthropy advisors are often outsourced initially and then brought in-house at a later date. <\/p>\n

Consider cost: Offering multi-disciplinary, high-touch services requires significant investment in talent, technology, compliance and infrastructure. <\/p>\n

Ms. Simmons says the initial setup can take a long time and can be expensive, particularly when it comes to registration.<\/p>\n

Ramp up security: Cybersecurity needs to be a focal point for anyone setting up an MFO, Ms. Saputo says. That involves setting firewalls and safeguarding information to prevent information leaks. <\/p>\n

\u201cMake sure you triple check callers\u2019 identities,\u201d she says, and that \u201crisks are mitigated in any way you can.\u201d <\/p>\n

If you\u2019re not hiring an IT person, consider outsourcing IT to a reputable firm with family office experience, she adds.<\/p>\n

Focus on individuals<\/p>\n

All in all, being an advisor at an MFO is not a part-time gig, Ms. Saputo says. <\/p>\n

\u201cIt\u2019s somebody who\u2019s really devoted to serving individuals and feeling that they\u2019re making a difference in their lives,\u201d she says.<\/p>\n

Ms. Simmons adds: \u201cMany advisors are drawn to the MFO model because it enables them to build a more enduring, impactful, and valuable practice \u2013 for both their clients and themselves.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Advisors launching an MFO need to be aware that their role will be…\n","protected":false},"author":2,"featured_media":124389,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[1397,45,49,48,133,5266,131,132],"class_list":["post-124388","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-appwebview","tag-business","tag-ca","tag-canada","tag-finance","tag-globe-advisor","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/124388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=124388"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/124388\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/124389"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=124388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=124388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=124388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}