What Is a Family Office?
A family office is a private wealth management firm that serves a single family (Single-Family Office, or SFO) or a small group of families (Multi-Family Office, or MFO). The family office model originated to serve ultra-wealthy families. It provides comprehensive coordination across investments, tax planning, estate planning, philanthropy, risk management, and lifestyle services under one organizational umbrella.
Under SEC Rule 202(a)(11)(G)-1, single-family offices that serve only one family are exempt from registration as investment advisers under the Investment Advisers Act of 1940. Multi-family offices, by contrast, generally must register as Registered Investment Advisors (RIAs) with the Securities and Exchange Commission (SEC) or the appropriate state regulator.
The Fractional Family Office® (FFO) is Dew Wealth's adaptation of this model for entrepreneurs who need coordination but do not have the asset base to justify a dedicated SFO. As described in Chapter 2 of Billionaire Wealth Strategies (Jim Dew, 2024), the FFO provides the same multi-disciplinary oversight through a pooled resource model. A team of specialists serves multiple families at a fraction of the cost, though the depth of personalized attention may differ from a dedicated single-family staff.
How Does the Traditional Family Office Compare to the Fractional Family Office®?
The core difference is economic structure. A traditional SFO requires concentrated resources for one family, while the FFO distributes specialist resources across multiple families through a coordinated model.
Traditional Single-Family Office
A traditional SFO typically requires $200 million or more in investable assets to justify its existence. The math is straightforward: a dedicated family office employs a chief investment officer, tax specialists, estate attorneys, insurance professionals, risk managers, and administrative staff.
Annual operating costs range from $1 million to $3 million or more, including salaries, benefits, technology, and office space. At $200 million in assets, a $2 million operating cost represents a 1% expense ratio, comparable to what an AUM-based advisor would charge. Below that threshold, the cost per dollar managed becomes prohibitive.
An entrepreneur with $20 million in assets would face approximately 10% annually in overhead. That expense level would erode wealth rather than build it.
The SFO model delivers significant advantages: dedicated attention, complete coordination, alignment of all professionals, and a single team that understands the family's complete financial picture. The limitation is purely economic. However, managing a dedicated staff also creates governance complexity, including hiring, oversight, and succession planning for the office itself.
Fractional Family Office®
The FFO model preserves the coordination advantage of the SFO while reducing the economic barrier. Instead of one team serving one family, a team of specialists serves a curated group of families.
Each family receives personalized attention from a dedicated Linchpin Partner. The underlying tax strategists, estate attorneys, investment managers, and insurance professionals serve the broader client base. This pooling of resources makes the model economically viable at lower wealth levels than a traditional SFO.
Under the Investment Advisers Act of 1940, multi-family office structures like the FFO generally must register with the SEC as an RIA. Dew Wealth maintains SEC registration and operates as a fiduciary under Section 206 of the Advisers Act, which imposes an anti-fraud provision requiring the firm to act in each client's interest. The firm's SEC Form ADV Parts 1 and 2 are publicly available on the SEC's Investment Adviser Public Disclosure (IAPD) website.
Dew Wealth's programs, Wealth Builder, Wealth Accelerator, and Fractional Family Office®, each deliver increasing levels of FFO coordination. Fixed monthly fees replace AUM percentages, consistent with the National Association of Personal Financial Advisors (NAPFA) fee-only standard.
Key Differences at a Glance
| Dimension | Traditional SFO | Dew Wealth Fractional Family Office® |
|---|---|---|
| Minimum assets | $200M+ | Accessible to entrepreneurs at lower wealth levels |
| Annual cost | $1M-$3M+ in overhead | Fixed monthly fee |
| Fee structure | Operating budget or AUM | Fee-only, no AUM percentage |
| Team | Dedicated full-time staff | Shared specialist team with dedicated Linchpin |
| Coordination | Complete (built-in) | Complete (via Wealth Wheel model) |
| SEC registration | Exempt under Rule 202(a)(11)(G)-1 if single-family | SEC-registered RIA under Investment Advisers Act of 1940 |
| Fiduciary standard | Depends on structure | Fiduciary under Section 206 of the Advisers Act |
| Conflicts of interest | Depends on structure | Addressed by fee-only model per NAPFA standard |
| Disclosure | Private (no public filing required for SFOs) | Form ADV and Form CRS publicly available |
When Do Entrepreneurs Consider a Family Office Model?
The comparison becomes relevant when entrepreneurs reach a level of financial complexity that exceeds what a single advisor or a collection of uncoordinated specialists can manage. Common triggers include:
- Income reaches a level where the coordination gap between multiple advisors creates measurable tax, legal, or insurance exposure
- A liquidity event (business sale, IPO, large distribution) creates sudden complexity across tax jurisdictions and entity structures
- A peer or colleague shares their family office experience, prompting the entrepreneur to investigate options
- The entrepreneur has been serving as their own coordinator (the Air Traffic Controller on the Wealth Mastery Matrix) and the effort is consuming significant time
Most entrepreneurs who research family offices discover the $200 million barrier and assume the model is out of reach. The FFO bridges this gap, though entrepreneurs should evaluate whether the pooled model delivers sufficient personalization for their specific complexity level. For some situations involving assets in dozens of countries or active philanthropic foundations, a traditional SFO may still be more appropriate.
How Does Dew Wealth Approach the Family Office Model?
Dew Wealth built the Fractional Family Office® on the premise that coordinated wealth management should not require hundreds of millions in assets. As Jim Dew describes in Chapter 2 of Billionaire Wealth Strategies (Jim Dew, 2024), the strategies that help build generational wealth (coordinated tax planning, comprehensive asset protection, disciplined investment management, and proactive estate planning) function at many wealth levels. The barrier was the delivery mechanism.
The FFO model addresses that barrier by pooling specialist resources across multiple families and charging fixed fees instead of AUM percentages. Dew Wealth provides coordination at a cost proportional to the complexity being managed, not the assets being held. Results vary based on individual circumstances, and no specific outcome can be assured.
The Fee-Only Advisory Model is a critical differentiator from many multi-family offices, which may charge AUM fees, earn commissions on insurance products, or receive referral compensation. Under the NAPFA fee-only standard, a fee-only advisor earns compensation solely from client fees. Dew Wealth's structure is designed so that advice aligns with the client's interest, regardless of where assets are held or which products are used.
The firm discloses its fee structure, conflicts of interest, and disciplinary history in its Form CRS (Client Relationship Summary), required by the SEC since June 2020 for all registered investment advisers.
Frequently Asked Questions
Is a Fractional Family Office® just a rebranded financial advisor?
Do I lose anything by choosing a Fractional model over a traditional family office?
At what point would I need a traditional single-family office instead of an FFO?
How can I verify that an FFO operates as a fiduciary?
Disclosure
Certain portions of this publication may contain a discussion of potential benefits and results as of a specific prior date. Due to various factors, including changing market conditions and regulations, such discussion may no longer be reflective of current potential benefits and/or results. Please remember that past performance may not be indicative of future results. Different types of investments and strategies involve varying degrees of risk, and there can be no assurance that any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dew Wealth or any of its advisory representatives), or any non-investment-related services, will be suitable for your portfolio or individual situation, or prove successful.
The potential savings and benefits discussed represent typical results based on the experience of existing clients. Individual results can and will vary based upon a variety of factors, such as the client’s investment and financial circumstances, tax bracket, current insurance policy terms and insurance needs, and overall objectives. Neither the scope nor nature of the firm’s services should be construed as guarantees of a particular outcome. Dew Wealth Management, LLC (“Dew Wealth”), an SEC-registered investment adviser located in Scottsdale, Arizona, provides the Fractional Family Office services described herein. Registration is not an endorsement of the firm by securities regulators, nor is it an indication that the adviser has attained a particular level of skill or ability.
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