Episode 6 of 10

How to Shortlist Multifamily Office Firms

A strong shortlist makes every later conversation easier. Start with your family’s needs, compare firms on the same facts, and keep the list small enough for real diligence.

Family Office Service Providers & Partners - What to Know

Start with your decision brief

Before reviewing firms, write a one-page brief. List the family members and entities the office may serve, the locations that matter, the services you expect, and the decisions you want help making. Include investment oversight, reporting, estate coordination, philanthropy, family governance, education, risk management, and administration where relevant. Separate required services from optional ones. State whether you want one lead relationship or several specialist providers. If a firm cannot explain how it would cover a required service, remove it from the shortlist. Our questions library can help you turn family priorities into interview questions. You can also review 30 learning guides before the first call.

Build a comparable long list

Use several discovery channels. Search the firms directory by service and location, review relevant locations, and ask trusted professional advisers for introductions. A referral is a starting point, not proof of fit. Record the same facts for every candidate: ownership, primary office, client profile, stated minimum relationship size, services delivered directly, services provided through partners, and the person who would lead your relationship. Check whether the firm describes itself as a multifamily office, a wealth manager, a trust company, a registered investment adviser, or another type of provider. Labels vary, so compare actual responsibilities. Keep eight to twelve firms on the long list, then reduce it to three to five firms for meetings.

Use a simple scoring grid

Score each candidate against the same categories. Give the highest weight to fit with your family’s needs and the quality of the proposed team. Then score service coverage, experience with similar complexity, geographic reach, communication practices, technology and reporting, fee clarity, and cultural fit. Ask for examples of how the firm coordinates with outside attorneys, accountants, custodians, and investment managers. Do not award points for a polished presentation alone. Ask who would actually do the work, how often senior people attend meetings, and what happens when a key employee leaves. Save your notes in one shared file. The tools section includes calculators that may help frame fees, liquidity, or other planning assumptions.

Check public records before interviews

Regulatory records can identify avoidable questions early. Registered investment advisers generally file Form ADV, which describes their business, ownership, services, fees, and certain conflicts. The SEC provides public adviser information through its Investment Adviser Public Disclosure database. Review the firm’s current brochure and compare its stated services with your brief. If a candidate or its representatives are broker-dealers or registered representatives, review available background information through FINRA BrokerCheck. Treat these databases as screening tools. They do not measure service quality or guarantee that a firm is suitable for your family. Ask the firm to explain any item you do not understand, and keep the explanation with your notes.

Run a focused first meeting

Invite three to five finalists to the same meeting format. Send your brief in advance and ask each firm for a proposed first-year service model, team chart, meeting cadence, reporting examples, fee schedule, and list of outside providers it expects to coordinate with. Ask what the firm will not do. Ask how it handles conflicts, privacy, cybersecurity, succession, and complaints. Request two or three client references with a similar service need, subject to the firm’s confidentiality rules. After each meeting, write what you heard while it is fresh. Shortlist the two or three firms that can explain their role clearly, show accountable people, and match your required services. The next episode covers due diligence and regulatory checks.

Keep the shortlist current

A shortlist is a working document. Record the date of every review, the source of each fact, and the questions still open. Recheck public disclosures before signing an engagement because ownership, personnel, services, and fees can change. If a firm will manage investments, custody assets, provide tax or legal services through affiliates, or receive compensation from other providers, ask for the relationship and payment structure in writing. Use the glossary when unfamiliar terms appear. Families that need a broader setup can review start a family office and compare the option of building an internal office with engaging outside providers.

Checklist

• Write a one-page brief separating required services from optional services.
• Score every candidate on the same categories and keep evidence for each score.
• Reduce the list to two or three firms only after reviewing public disclosures and holding the same first meeting.

Takeaway

Shortlist firms by matching documented capabilities and accountable people to your family’s written needs, then compare every finalist on the same facts.

Sources

1. SEC Investment Adviser Public Disclosure
2. FINRA BrokerCheck