Multi-Family Offices in NYC: A Guide for Ultra-High-Net-Worth (UHNW) Families

Multi-Family Offices in NYC: A Guide for Ultra-High-Net-Worth (UHNW) Families

For New York’s Ultra-High-Net-Worth (UHNW) families—those with assets typically from $30M to $500M—a critical choice emerges. While a Single-Family Office (SFO) offers total control, its operational costs and burdens are immense. At the other end, a private bank can feel impersonal and rife with conflicts. The solution that most of NYC’s elite families choose is the Multi-Family Office (MFO).

An MFO provides the “family CFO” experience of a private office, combined with the resources and shared costs of an institutional firm. As your guides at AZ New York, we’re taking you inside this exclusive model to explain why it’s the preferred structure for preserving generational wealth in the city.

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NYC’s Elite Multi-Family Offices (MFOs)

These MFOs are renowned for their high-touch service, deep expertise, and fiduciary commitment to their client families. Unlike private banks, they typically operate on an “open-architecture” platform, meaning they select best-in-class investments from the entire market, not just their own proprietary funds.

1. Bessemer Trust: The gold standard, originally founded as an SFO for the Phipps family (Carnegie partners).
2. Rockefeller Capital Management: The modern evolution of the iconic Rockefeller family office, expanded to serve other UHNW families.
3. BBR Partners: A boutique MFO known for its intense focus on a small number of UHNW families, ensuring high-touch service.
4. Cresset Asset Management: A rapidly growing, founder-focused firm that combines a high-end MFO with a premier independent advisory (RIA).
5. Tiedemann Advisors: A leader in impact and sustainable investing, this MFO has a global footprint.
6. Silvercrest Asset Management Group: A leading firm known for its deep in-house investment management capabilities.
7. Summit Rock Advisors: Acts as the dedicated “Outsourced Chief Investment Officer” (OCIO) for a select group of UHNW families.
8. Cerity Partners: A large, integrated firm that provides comprehensive MFO services, from tax planning to investment management.

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The UHNW Conflict: Multi-Family Office vs. Private Bank

For the UHNW family, the real conflict isn’t just about investments; it’s about alignment. A private bank (like those in our JPM vs. Goldman guide) is a “product” company. An MFO is a “service” company. This is the crucial pedagogical distinction.

Feature	Multi-Family Office (MFO)	Private Bank (e.g., JPMorgan, Goldman)
Core Business Model	Service (Fee-Only). Acts as a fiduciary, paid only by the client. Sells only advice.	Product (Fee-Based). Sells access to the bank’s balance sheet, proprietary funds, and banking products.
Investment Platform	Open-Architecture. Scours the globe for “best-in-class” managers, even from competitors.	Proprietary. Prefers to use its own in-house investment funds and structured products.
Primary Service	Holistic coordination: tax, legal, estate, bill pay, family governance. Acts as the “family CFO.”	Investment management and access to complex lending (art, jets, real estate).
Core Conflict	Minimal. The only incentive is to grow the client’s assets to increase the AUM-based fee.	Significant. Is the advisor recommending their in-house fund because it’s the best, or because it helps the bank?

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The Expert’s View: Investor vs. Speculator

This distinction remains critical. True UHNW wealth is preserved by being an investor, not a speculator.

• The Investor uses an MFO to build a resilient, global, all-weather portfolio. They focus on tax-efficient structures, generational wealth transfer, and governance. For the investor, time is their ultimate ally, allowing disciplined compounding.
• The Speculator chases returns. They want access to the “hot” pre-IPO deal or a leveraged bet. They are focused on short-term price movements. For the speculator, time is the enemy.

MFOs are built from the ground up to serve investors. They are stewards of capital, not gunslingers.

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Real-World NYC Scenarios: The MFO Value Proposition

1. The Generational “Family CFO”

Profile: A family with $250M in assets from a business sale three decades ago. The wealth is now spread across 15 family members in four states, held in multiple complex trusts. They need coordination.

The MFO Solution: An MFO (like Bessemer or BBR) acts as the family’s central “CFO.” They don’t just manage the investments; they provide consolidated reporting for all 15 members, coordinate with tax accountants, pay bills, and ensure the trusts are administered properly. This is an operational role a private bank will not touch.

2. The “Next-Gen” Education

Profile: A 65-year-old entrepreneur who sold her company for $100M. Her children, in their 20s, have no experience with money. Her greatest fear is the wealth will be “lost in three generations.”

The MFO Solution: The MFO implements a “family governance” plan. This includes educating the children on financial literacy, setting up a family foundation to teach philanthropy, and creating a family “constitution” that defines the wealth’s purpose. This is a core “Family Focus” service.

3. The “Unconflicted” Impact Investor

Profile: A UHNW family wants to dedicate $50M to impact investing (e.g., clean energy, social equity). A private bank shows them their two in-house “ESG” funds.

The MFO Solution: An MFO with an impact specialty (like Tiedemann) uses its open-architecture platform. They scan the *entire market* and select the 10 “best-in-class” impact managers in the world—in private equity, public stocks, and private credit. The advice is unconflicted, ensuring the family gets the best solution, not just the bank’s solution.

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Frequently Asked Questions (FAQ)

Q: What is the *real* difference between an MFO and a high-end private bank?

A: The fiduciary standard and open architecture. An MFO is legally required to act in your best interest and builds your portfolio from the entire universe of options. A private bank’s main goal is to sell you the bank’s products and services.

Q: What are the typical minimums and fees for a NYC MFO?

A: MFOs are for UHNW families, so minimums are high—typically starting at $25M or $50M, with some firms not taking new clients under $100M. Fees are often a percentage of AUM (e.g., 0.25% – 0.75%) or a flat annual retainer (e.g., $100k – $500k+).

Q: What is “Family Governance”?

A: It’s the “soft” side of wealth preservation, and it’s what MFOs excel at. It involves creating a system for family decision-making, educating the next generation about wealth, and establishing a family mission or constitution. As the team at AZ New York often says, it’s the “how” and “why” of the family, not just the “what.”

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