How Blurred Boundaries Are Creating New Opportunities—and New Challenges—in the Family Office Landscape

In the past, the distinction between a Single-Family Office (SFO) and a Multi-Family Office (MFO) was relatively clear. SFOs were private, purpose-built structures managing the affairs of one wealthy family. MFOs were commercial service platforms supporting many families—typically offering investment oversight and integrated financial services.

But in today’s evolving wealth environment, those lines are starting to blur.

We’re seeing a convergence of SFO and MFO models—and it’s changing the way advisory firms, administrative service providers, and even families themselves approach the structure and delivery of family office services.

Let’s explore what’s driving this convergence and how advisory firms can navigate the shift.

Traditional Definitions—And Why They’re Evolving

• SFO (Single-Family Office): A dedicated entity or team that serves the needs of one family. Typically housed within the family’s business or wealth structure, SFOs are customized, private, and often high-touch.
• MFO (Multi-Family Office): A firm that provides services to multiple families, often through standardized or modular offerings. MFOs may have investment platforms, trust services, and administrative capabilities under one roof.

So, what’s changing?

In short: families want the best of both worlds—customization without complexity, privacy without isolation, and integrated services without unnecessary infrastructure.

Drivers Behind the Convergence

1. Cost Efficiency

Running an SFO can be expensive—often requiring dedicated staff for investments, accounting, legal, and operations. For families with under $250 million, maintaining this infrastructure in-house may not be sustainable or fiscally logical.

MFO-style service models allow families to access professional-grade support without having to build and manage it all themselves.

2. Talent Scarcity

Qualified staff—especially on the administrative and operational side—are increasingly hard to find and retain. Families are turning to outsourced providers and shared service platforms that resemble MFOs in function, even if the family maintains its own office.

3. Demand for Flexibility

Families want access to best-in-class services across disciplines—without being locked into a single provider. Many are assembling hybrid models: in-house staff for core needs, with external partners filling in gaps.

This mirrors the MFO’s multi-service capability but maintains SFO-like customization and control.

4. Complexity Management

As family structures grow more complex—multiple generations, businesses, foundations, and global assets—SFOs are seeking outside support that can offer standardized processes, institutional-grade systems, and intergenerational continuity.

MFO providers, in turn, are developing boutique-style services for larger families, resembling SFOs in both relationship depth and customization.

What This Means for Advisory Firms

For investment advisors, accountants, estate planners, and family consultants, the SFO-MFO convergence introduces both opportunities and responsibilities.

1. Increased Collaboration Expectations

Families now expect advisors to work across organizational models—coordinating with an SFO’s internal team, plugging into an MFO platform, or supporting hybrid structures. Clear communication and shared reporting frameworks are essential.

2. Expanded Service Scope

Advisory firms that once focused narrowly on investment or legal strategy may be asked to participate in cash flow management, document structuring, philanthropic oversight, or operational guidance. Administrative fluency becomes a differentiator.

3. Infrastructure Demands

As families seek more integrated services, firms may need to upgrade their systems, workflows, and internal processes to match expectations. This includes secure data environments, standardized reporting templates, and the ability to coordinate across multiple advisors or entities.

4. A Shift in How Value Is Defined

With less focus on AUM and more attention on coordination, continuity, and customized service, advisory firms must consider how they articulate their value—particularly when they are one piece of a larger family office puzzle.

How Firms Can Respond Strategically

• Clarify Your Role: Know where your firm fits within a family’s broader ecosystem and make your scope explicit.
• Invest in Advisor Collaboration: Build systems and habits for sharing information securely and timely with other providers.
• Develop Administrative Awareness: Understand what’s happening behind the scenes—bookkeeping, bill pay, payroll—even if you don’t deliver it yourself.
• Create Flexible Engagement Models: Be prepared to support both long-term ongoing clients and project-based work within family office environments.
• Educate Clients on Structure Options: Help families understand what they can build internally versus outsource, and how to scale over time.

In Summary

The convergence of SFOs and MFOs reflects a broader shift in how wealth is managed: from rigid organizational boundaries to flexible, functional ecosystems. Families are no longer choosing one model—they’re designing their own.

For advisory firms, this convergence presents a powerful opportunity: to support families not just with technical expertise, but with insight into how modern family offices actually operate.

Those who adapt will not only stay relevant—they’ll become indispensable partners in the evolving world of family office service.