What is a single family office?

A single family office is a private company set up to manage the wealth and affairs of one family. It is, in effect, the family’s own in-house investment and administration team.

The term is used loosely, so it helps to be precise. This is a plain-English guide to what a single family office does, how it differs from other structures, and why it matters to anyone raising capital.

What a single family office does

At its core a single family office looks after a family’s investments. Most also handle related work: tax and legal coordination, reporting, philanthropy, property, and sometimes lifestyle and administrative support. What they cover varies widely from family to family. There is no single template.

The defining feature is that it serves one family. Its priorities are that family’s priorities, and its decisions are made by the family, usually with a small team of professionals.

Single and multi-family offices

A multi-family office serves several families and shares the cost of a professional team between them. A single family office serves one, and pays for its own team. That gives the family greater control and privacy, at a higher cost.

Because of that cost, a single family office is generally thought to make economic sense only above a certain level of wealth or complexity. Figures in the region of £100 million and above are often cited, but there is no fixed rule, and some families set up smaller offices for other reasons.

How single family offices invest

Most invest across a mix of public markets, private equity, venture capital, real estate and other assets. What distinguishes them from institutions is the time horizon and the freedom that comes with it.

There are usually no outside investors to report to and no fund life to work within. That allows patient capital and unusual decisions. It also means the approach differs between families: some invest directly, some through funds, some through co-investments alongside managers they trust. We look at that shift in direct, co-invest, or fund.

Why it matters if you are raising capital

Decisions at a family office are often personal, relationship-led and slower than at an institution. There may be no committee calendar and no standard process, and the values and history of the family can matter as much as the numbers.

For founders and fund managers, that means preparing differently. Understand who actually decides, what the family cares about, and how they prefer to work. Our note on what a family office looks for is a good next step.

This note is general information and not investment, legal or financial advice.