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SFO Setup Cost Estimator

This model estimates baseline legal, operational, and staffing costs for establishing a new Single Family Office. It assumes a standard OpCo/HoldCo separation.

Input Parameters

AUM ($ Millions): M

Internalize Investment Function (Hire CIO instead of OCIO)

Complex Trust Structuring (e.g., establishing a PTC)

Estimated Year 1 Capital Requirement

Legal & Structuring Setup:

Ongoing OpEx (Staff, Tech, OCIO):

Total Estimated Year 1:

OpEx represented as basis points (bps) on AUM.

JavaScript is required for interactive calculation. Baseline assumption: $250M AUM with OCIO costs roughly $1.1M/year (44 bps) + $100k standard legal setup.

Assumptions & Caveats

OCIO Fees: Assumes a blended rate of 35 bps for outsourced management. Real rates vary from 20-60 bps depending on illiquidity.
Internal CIO: Assumes $800k total comp (base + bonus) for a lean 2-person team (CIO + Analyst). Excludes long-term carry.
Admin/Tech: Assumes $250k for basic portfolio accounting software, general ledger, and outsourced controller function.