I
You should be able to assign a filter to each contact and then sort for the filter. It worked for me on Windows Phones. I'm new here but I don't see any reason why it wouldn't. I use to sort by P for personal and B for business as an example.
This is the only way to make multiple contact lists:
https://support.apple.com/kb/ph2667?locale=en_US
I've never seen an option like that on iPhones.