What multifamily offices charge and why fees vary

Multifamily office fees reflect the services a family receives and how the office charges for that work. Understanding the scope, billing method and separate expenses helps explain why proposals can carry different prices.

What multifamily offices charge and why fees vary

A multifamily office provides services to multiple families, sharing staff and resources across those relationships. Its work may include investment management, financial administration and coordination with outside professionals. The family office label alone does not explain what a particular engagement includes.

Family Office Club research does not establish a standard industry fee. Richard Wilson of Family Office Club says charges vary with the services provided. He notes that concierge services and philanthropic work may carry extra charges, as may legal work or fund work. A quoted fee therefore needs to be read alongside the description of included work.

Service needs can also change. An engagement focused on investment oversight has a different scope from one that includes bill payment, estate coordination and support for family members. A fee comparison becomes clearer when each proposal describes the same responsibilities.

How the main fee models work

Fee models determine how the bill is calculated. They do not, by themselves, establish which services are included.

• A flat fee sets a price for an agreed scope of work. The agreement may provide for changes when that scope expands.
• An asset-based fee uses the value of assets covered by the agreement. A tiered schedule applies different rates to defined asset bands, according to its terms.
• A retainer is a recurring payment for agreed services or access to a team. Its coverage depends on the engagement.
• A performance-only arrangement links compensation to a defined investment result. The calculation and payment conditions are part of the fee terms.

That example illustrates a disclosed approach. It does not establish a market rate or a formula used by every multifamily office.

What may sit outside the quoted fee

A proposal can describe the office's own compensation without capturing every expense connected to the relationship. Separate professional bills, investment product expenses and project charges can affect the total cost. Whether these apply depends on the services and arrangements involved.

Wilson's examples include potentially separate concierge services and philanthropic work, as well as legal work or fund charges. They show how fee boundaries work. Coordination also differs from delivery. An office might coordinate tax or legal work while an outside professional performs it and sends a separate invoice.

A clear scope identifies who performs each task, who bills for it and what triggers another charge. It also explains how unusual requests are priced. Without those details, similar headline fees may cover different amounts of work.

Why fee comparisons need matching definitions

Comparing proposals requires consistent definitions. For an asset-based fee, the relevant terms include which assets count, how they are valued and how tiers apply. For a flat fee or retainer, the terms include covered activities and limits, plus the process for revising the price.

Reporting and access belong in the comparison too. A service description can clarify what information the family receives, how often it arrives and how records can be accessed.

Firm size does not resolve these differences. For fee education, that means connecting the price to the actual work and responsibilities described in the agreement.

Fees, compensation and responsibilities

The stated fee is one part of understanding how an office is paid. Disclosure helps explain whether compensation comes only from the family or also from other sources.

Responsibilities require separate attention. The multifamily office label therefore does not establish that duty across every service. Fee terms, compensation disclosures and the description of responsibilities answer different questions about the relationship.

FAQs

Is there a standard multifamily office fee?

Family Office Club research does not establish one. Richard Wilson of Family Office Club says charges vary by service, with some activities potentially billed separately.

Does a flat fee cover every service?

Coverage depends on the agreement. A flat fee can cover a defined scope while leaving outside professional bills or additional projects payable separately.

Can the fee change without a change in services?

Yes. An asset-based bill can change as covered asset values change. Other adjustments depend on the pricing terms in the engagement.

Sources

• Family Office Club research database
• Family Office Club research database
• Family Office Club research database
• Family Office Club research database
• Family Office Club research database
• Family Office Club research database

Related: all guides, the directory, calculators. For events and peer access, see FamilyOffices.com.