For families with substantial and growing wealth, there comes a point where managing it starts to look less like a series of individual decisions and more like running an organisation. Investments, tax, property, philanthropy, succession and the needs of the next generation all begin to interact, and coordinating them becomes a job in itself.
The family office is the structure that has traditionally answered that problem. Once the preserve of a small number of dynastic families, it is now a fast-growing model, and a far broader group of High-Net-Worth and Ultra-High-Net-Worth families are asking whether some version of it is right for them.
This article explains what a family office actually is, the different forms it takes, what one costs, and how to judge whether you need one.
What you'll find in this article
A family office is a private organisation that coordinates the financial affairs of one or more wealthy families, bringing investment management, tax, estate planning, administration and often lifestyle services under a single roof. This article defines the family office and the difference between a single-family office and a multi-family office, sets out what a family office does day to day, and looks honestly at the wealth levels and costs involved. It then explains how a modern, technology-led model is making family-office-style coordination available to families below the traditional threshold, and where Cadro fits in for UK investors who want the benefit of some family office services without the cost and complexity of building one from scratch.
What is a family office?
A family office is a private organisation set up to manage and coordinate the financial affairs of one or more wealthy families. Rather than dealing with a bank for investments, a separate accountant for tax, a lawyer for estate planning and yet another party for administration, a family office brings these functions together and coordinates them around a single family's objectives.
The model has grown quickly. According to Deloitte, there were an estimated 8,030 single-family offices worldwide in 2024, up 31% since 2019, with the number projected to reach around 10,720 by 2030. Europe accounts for roughly 2,020 of them. The growth reflects both a rise in the number of wealthy families and a recognition that, past a certain level, wealth is easier to protect when it is coordinated rather than fragmented.
Single-family office vs multi-family office
The two main forms of family office differ in how many families they serve.
A single-family office (SFO) serves one family exclusively. It is a dedicated organisation, often with its own staff, built entirely around that family's assets, goals and preferences. It offers the most control and the most bespoke service, but the family bears the full cost of running it.
A multi-family office (MFO) serves several families at once, sharing its team and infrastructure across them. Each family gives up some exclusivity, but in return gains access to professional coordination at a fraction of the cost of building a dedicated office. For most families, the practical choice is not "single-family office or nothing" but whether a multi-family office or a coordinated wealth service meets the need.
What does a family office do?
The exact remit varies by family, but a family office typically coordinates some or all of the following:
- Investment management across public and private markets, and oversight of external managers
- A consolidated view of total wealth across accounts, assets and structures
- Tax coordination and liaison with tax specialists
- Estate planning and succession, including preparing the next generation
- Administration, reporting and record-keeping
- Philanthropy and, in larger offices, lifestyle and concierge services
The common thread is coordination. The value of a family office is less in any single service than in making sure the services work together, so that an investment decision, a tax position and an estate plan are not made in isolation from one another.
Do you need a family office? The wealth levels involved
This is where realism matters. A traditional single-family office is expensive to run. Industry guidance commonly puts the threshold at which a dedicated single-family office becomes cost-effective at around US$100 million or more in investable wealth, with annual running costs frequently cited at US$1 million to US$2 million. Below that level, the running cost consumes too large a share of the wealth to justify itself.
To make that concrete, consider an illustrative example. If a single-family office costs £1.5 million a year to run, that is 1.5% of a £100 million fortune but a prohibitive 7.5% of a £20 million one. (This example is illustrative only: actual costs and appropriate structures vary with circumstances.)
This is precisely why multi-family offices and coordinated wealth services exist. They give families the coordination and oversight of a family office at wealth levels, often cited from around US$30 million upwards, where running a dedicated office would not make sense.
The modern family office
The traditional trade-off, full coordination only if you can afford to build a dedicated office, is being reshaped by technology.
A modern, technology-led model can deliver much of what a family office provides, a single view of total wealth, coordinated investment, tax and planning, and professional oversight, without each family bearing the cost of a standalone organisation. Sometimes described as a virtual or modern family office, this approach combines a coordinated professional team with technology that consolidates the full picture in one place.
For families whose wealth has grown beyond what a conventional wealth manager comfortably handles, but who are some distance from the scale that justifies a dedicated single-family office, this middle path is often the most sensible answer.
Family office vs wealth manager
A conventional wealth manager focuses primarily on managing a portfolio. A family office, or a coordinated service modelled on one, takes a wider view, bringing investment together with tax, estate planning, reporting and administration so that the whole picture is managed as one.
The distinction is coordination. As wealth becomes more complex, the risk is not usually poor investment performance in isolation, but decisions made in separate places that do not add up to a coherent whole. A family office exists to close that gap.
Where Cadro fits in
Disclaimer: Cadro is not a tax adviser, and the following is general information rather than advice; confirm your position with a qualified specialist or HMRC. In addition to discretionary wealth management services, Cadro provides specific facilities that can form aspects of a wider family office strategy, but Cadro does not provide holistic family office solutions that may, for example, include specialist tax and financial planning services. All investment comes with risk, the value of your portfolio might go down as well as up, and you may get back less than you originally invested.
Cadro is a modern, tech-enabled wealth manager that works with High and Ultra-High-Net-Worth individuals and families to build investment solutions based on a client's specific risk appetite, circumstances and long-term objectives. The firm also provides some aspects of traditional family office services, including bespoke portfolio construction across public and private markets, strategic advice, and the ability to coordinate with and work alongside a client's existing specialist financial service providers such as tax planners, accountancy services and corporate directorships.
This may be beneficial for individuals and families who wish to gain access to a centralised view of their wealth and links to specialists, without the cost and complexity of building a family office from scratch. The aim is to give families a clear view of everything they own and its long term potential, rather than a set of providers working in isolation.
If your wealth has grown to the point where coordination matters as much as performance, and you would like to understand what a modern family-office approach could look like for you, speak to the Cadro team.
FAQs about family offices
What is a family office in simple terms?
A family office is a private organisation that manages and coordinates the financial affairs of one or more wealthy families, bringing investment, tax, estate planning and administration together under one roof and around a single family's goals.
What is the difference between a single-family office and a multi-family office?
A single-family office serves one family exclusively and is funded entirely by that family. A multi-family office serves several families at once, sharing its team and infrastructure so that each family gains professional coordination at a lower cost than running a dedicated office.
How much money do you need for a family office?
A dedicated single-family office is generally considered cost-effective only at around US$100 million or more in investable wealth, given annual running costs commonly cited at US$1 million to US$2 million. Multi-family offices and coordinated wealth services extend a similar model to families with lower levels of wealth, often cited from around US$30 million.
What does a family office do?
A family office typically coordinates investment management, a consolidated view of total wealth, tax coordination, estate planning and succession, administration and reporting, and sometimes philanthropy and lifestyle services. Its defining feature is coordinating these functions rather than leaving them to operate separately.
Do I need a family office?
It depends on the scale and complexity of your wealth. If your affairs span multiple assets, structures and advisers and coordinating them has become a burden, a family office or a coordinated wealth service may help. For many families below the threshold for a dedicated office, a modern multi-family office or technology-led service achieves the same coordination at lower cost.
Disclaimer: This article is intended for informational purposes only and does not constitute investment, legal or tax advice, nor a recommendation to engage in any investment activity. It does not take into account the investment objectives, financial situation or particular needs of any individual. Capital at risk. The value of your portfolio can go down as well as up and you may get back less than you invest.
