Family offices are on a mission to transform modest beginnings into towering legacies. In 2026, this journey feels more urgent than ever as ultra-wealthy families navigate emerging trends, rising costs, and complex global shifts.

Introduction to Family Offices

By definition, a family office is a private entity that manages the financial, investment, and personal affairs of ultra-wealthy families, typically with an average net worth of $1.6 billion. Drawing on J.P. Morgan’s Global Family Office Report—which surveyed 333 offices across 30 countries—2026 reveals a clear risk-on attitude amid headwinds.

Natacha Minniti of J.P. Morgan observes, “While family offices everywhere are facing similar headwinds, their actions vary regionally. What stands out globally is a clear risk-on attitude... 57% have no exposure to growth and venture capital.” This contrast between ambition and execution sets the stage for a transformative year.

AI and Technology: The Growth Seeds

Artificial intelligence has emerged as the metaphorical seed of future growth. An impressive 65% of family offices plan to prioritize AI, yet only 43% hold any VC or growth-equity exposure—averaging a mere 3.3% of their portfolio. Infrastructure investments fare worse: just 21% of offices allocate an average of 0.7%, leaving over 70% entirely unprepared.

This gap between ambition and allocation underscores both risk and opportunity. Investing in cutting-edge intelligence ambitions can yield inflation hedges via power-generation and transmission assets, as demand for data centers surges.

• 65% prioritize AI; 43% have VC/growth equity.
• 21% invest in infrastructure; average allocation 70 bps.
• Over 70% have no AI infrastructure exposure.

Risk Management: Navigating Storms

Geopolitical turmoil tops global concerns at 64%, while U.S. offices worry equally about interest rates (64%) and inflation (61%). These uncertainties drive a preference for tangible assets and robust hedges.

Rather than gold or crypto—72% and 89% of offices avoid them, respectively—families favor real estate and hedge funds as primary inflation hedges. U.S. families, in particular, tilt more heavily toward alternatives, scaling back direct real estate exposure.

• Top global risk: Geopolitics 64%.
• U.S. risks: Interest rates 64%, inflation 61%.
• 72% avoid gold; 89% avoid cryptocurrency.

With markets in flux, deploying robust risk management frameworks is essential to sustaining growth and protecting capital.

Portfolio Cultivation: Alternatives and Privates

As public markets fluctuate, private markets continue their meteoric rise—Preqin data shows a 524% increase in exposure since 2016. Family offices lead the charge, aiming for return targets above 11%, well above JPMorgan’s sub-10% forecast for most asset classes.

Average allocations underscore this trend:

Those targeting >11% returns deploy over 40% in alternatives, doubling average real estate holdings when inflation concerns peak. This reflects a broader embrace of private markets dominance as the cornerstone of long-term growth.

Operational Realities: Rising Costs and Talent

As ambition grows, so do expenses. Global average operating costs stand at $3 million per year. Offices with more than $1 billion in assets under management face costs averaging $6.6 million, while smaller offices (<$250 million) spend just $0.9 million.

Competition for talent, robust compliance needs, and reliance on external services—25% to 28% of total costs—drive these figures higher. Maintaining an edge requires careful budgeting for human capital and technology.

Governance and Succession: Roots for Longevity

Strong governance is the hidden root system that supports towering legacies. Yet 86% of U.S. family offices lack a clear succession plan, and 41% of business-owning families need more robust frameworks to manage complex relationships and risk.

Building intergenerational wealth transfer strategies involves more than legal documents; it demands transparent communication, shared values, and formal councils to guide decision-making.

• 86% of U.S. offices lack a documented succession plan.
• 41% of business families need stronger governance.
• Formal structures cement alignment and trust.

Global Shifts: Regional Growth Engines

New hubs are emerging as power centers for family offices. The UAE’s DIFC and ADGM offer investor-friendly frameworks, attracting families with average SFO AUM of $900 million. Meanwhile, the U.K. saw 16,500 millionaires relocate in 2025, driven by tax considerations.

Asia is the fastest-growing region, hosting 30% of single-family offices and 26% of multi-family offices, 40% of which were established in the last 15 years. These shifts underscore the importance of flexibility in domicile and strategy.

Predictions and Challenges

Looking ahead to the remainder of 2026, private markets will continue to dominate portfolios. Digital assets and advanced analytics will gain ground, even as infrastructure investments struggle for attention.

Yet challenges loom: identifying high-quality opportunities will become harder, costs will rise with regulatory scrutiny, and talent wars will intensify. Family offices that combine strategic vision with disciplined execution will be best positioned to grow from seeds into sequoias.

Stuart Pinnington of IQ-EQ captures the sentiment: “The family office landscape is entering a period of accelerated change... Private markets will remain dominant.” As families worldwide adapt, those who nurture small investments into enduring legacies will stand the test of time.