Starting Your Own UHNW Family Office vs. Outsourcing

As your wealth reaches the ultra-high-net-worth (UHNW) threshold, the complexity of managing it grows exponentially. Many families at this level come to an inflection point: should they establish their own UHNW family office with dedicated staff and infrastructure, or partner with a multi-family office that provides outsourced wealth management services? 

Each choice offers distinct advantages and considerations that depend on your family’s specific circumstances, priorities, and long-term vision.

	UHNW family office (single-family office)	Outsourcing (multi-family office)
Minimum assets	Requires substantial assets (typically $500M+) to justify costs	Accessible to families with lower asset thresholds
Control	Complete control over all investment decisions and strategies	Shared decision-making within established frameworks
Staffing model	Dedicated staff working exclusively for one family	Shared professional resources across multiple client families
Customization	Full customization of services, reporting, and operations	Standardized services with some customization options
Operating costs	Higher annual operating costs ($1M – $3M+)	Lower costs through economies of scale
Team management	Direct hiring and management of all personnel	Access to established team of specialists
Privacy	Full privacy and confidentiality	Strong privacy protections with some information sharing
Time commitment	Requires significant time investment in oversight	Reduced administrative burden

The decision between these two models isn’t simply about cost — it’s about finding the structure that best aligns with your family’s values, complexity, and governance preferences. Schedule a conversation with Avidian Wealth Solutions to explore what a boutique family office experience can offer your family.

What is a UHNW family office?

A family office is a personal wealth management firm that provides a wide array of financial services, including portfolio and estate management, as well as various concierge services such as bill payment, travel booking, property management, and more. 

There are two main types of family office structures: the multi-family office structure and the single-family office structure. Single-family office structures are owned and operated by one single ultra-high or high-net-worth family and are designed to manage the wealth of that specific family. Boutique family offices that use the multi-family office structure tend to offer similar family office services but to more than one family. 

Traditionally, multi-family offices are much more cost-effective than single-family offices, because single-family offices involve the significant investments of setting up a family office and hiring your own team of dedicated professionals.  

What is the hybrid family office model?

The hybrid family office model is gaining momentum among ultra-high-net-worth families seeking greater flexibility. This approach allows families to maintain direct control over aspects requiring deep customization — such as closely held investments or sensitive family matters — while selectively outsourcing specialized services to a trusted multi-family office partner. Control over confidential information remains with the family, with disclosure managed on a need-to-know basis.

While sometimes described as an Outsourced Chief Investment Officer (OCIO) model, this characterization captures only one dimension of what hybrid structures can offer. In practice, families may outsource any combination of services traditionally handled in-house — from investment management and tax coordination to estate planning support and administrative functions — creating a customized solution that balances control, expertise, and efficiency.

Should you build or outsource your family office?

Minimum assets

A private UHNW family office typically requires substantial assets — often $500 million or more — to justify the operational expenses of maintaining an independent office. Below this threshold, the costs of staffing, technology, and infrastructure can consume a disproportionate percentage of the family’s wealth. 

A UHNW multi-family office, by contrast, serves multiple client families simultaneously, which allows families with lower asset levels to access comprehensive wealth management services without bearing the full cost structure alone.

Control

Establishing a UHNW single-family office provides complete autonomy over investment decisions, strategies, and operational procedures. The family retains final authority on every aspect of wealth management without external input. 

Outsourcing to a multi-family office involves working within established investment frameworks and governance structures, though many firms offer flexibility in how strategies are implemented for individual families.

Staffing model

A single-family office employs dedicated professionals who work exclusively for one family offering focused attention on that family’s specific needs and priorities. This team answers directly to the family and has no competing responsibilities. 

Multi-family offices employ shared resources across their client base, with professionals managing multiple family relationships simultaneously. This model offers access to specialized expertise that might be difficult for a single family to recruit and retain independently.

Customization

The benefits of a family office that you build yourself include the ability to design every aspect of operations around your family’s specific requirements — from reporting formats to investment philosophies to the physical office environment itself. 

An outsourced solution typically offers standardized service offerings with opportunities for customization within established parameters, balancing efficiency with individual family preferences.

Operating costs

Running an independent family office involves substantial annual expenses, commonly ranging from $1 million to $3 million or more depending on the scope of services and staff size. These costs include salaries, benefits, office space, technology systems, and compliance infrastructure. 

Multi-family offices distribute these operational costs across multiple client families, which generally results in lower per-family expenses through economies of scale.

Team management

A single-family office requires the family to directly hire, manage, supervise, and retain all personnel, including investment professionals, accountants, estate planning services coordinators, and administrative staff. This provides control over team composition but demands significant management attention. 

Outsourcing to a UHNW multi-family office provides immediate access to an established team of specialists with varied expertise, eliminating the recruiting and retention challenges while relying on the provider’s existing talent management.

Privacy

Operating your own private UHNW family office offers the highest level of confidentiality, as information remains within a closed system controlled entirely by the family. No financial details or family matters are shared with outside families or third parties beyond necessary service providers. 

Multi-family offices maintain strong privacy protections and professional confidentiality standards, though some operational information exists within a shared service environment where multiple families are clients of the same firm.

Time commitment

Managing a single-family office demands considerable time and attention from family members or designated representatives, including oversight of staff performance, strategic decision-making, and operational management. This hands-on involvement can be substantial depending on the family office experience and complexity of the family’s affairs. 

Outsourcing your UHNW family office can reduce the administrative burden, as the provider handles day-to-day operations, allowing family members to focus on higher-level decisions and other priorities.

When should I consider a family office?

We’ve explained what a family office does, and who might have one, but why do you need a family office? What practical circumstances make a boutique family office environment the right decision for your family and your finances?

Here are a few questions that you should ask yourself about your needs to determine if you would benefit from a family office experience.

1. Do I (or my advisor) have adequate time to manage my finances?

Once your wealth grows past a certain point, there is no way that one or two people can handle all of the duties (or sort out the complexities) associated with managing it. High-net-worth individuals looking to continue growing their wealth often need multiple professionals to manage very specific parts of their finances. Within the single-family office structure, all of those professionals work together under one roof, united by the goals of simplifying your financial life and fulfilling your financial dreams. 

2. Could I be getting more out of my financial management?

Whether your financial advisor is at a private firm or is an uncle that inherited the job, here are a few signs that you could be getting more out of your wealth management:

• Your income has recently increased exponentially, or you’re about to make major changes to your finances.
• Changes have been made to your portfolio that haven’t been well-explained. You never want your financial advisor to say “just trust me.”
• You have an unclear understanding of how you’re paying your financial advisor. 
• You don’t regularly discuss your goals or are not regularly achieving them.
• Your financial advisor is difficult to get in touch with. 

One of the most common reasons for high-net-worth individuals to make the switch to a family office environment is that they have outgrown their previous financial management. As your wealth grows, so too should your resources. 

3. Am I confident that my wealth will be well-managed after I am gone?

If the answer is no, you would likely benefit from the deep estate planning services offered by a boutique family office. 

Whether you want to safeguard your wealth so that it can continue to serve all of the people you care about, or are concerned about leaving behind your legacy, estate planning with a team of dedicated financial advisors can help secure the integrity of your estate for generations to come. 

Who needs a UHNW family office? With Avidian Wealth Solutions, it could be you.

Both multi-family UHNW family offices and UHNW single-family office structures can provide high-net-worth individuals access to comprehensive wealth management services, and varying degrees of customization, confidentiality, and operational support. Determining the appropriate structure depends on a family’s specific needs, priorities, and preferences, including how those factors align with the costs and resources associated with each model. 

Avidian Wealth Solutions works with UHNW families through a boutique family office approach in Houston, Austin, Sugar Land, and The Woodlands. Our multidisciplinary team of dedicated financial professionals offers integrated wealth management services designed to support each client’s individual circumstances and long-term objectives. 

To learn more about how Avidian offers a cost-effective family office experience, schedule a meeting with us today.

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