The 2026 J.P. Morgan Private Bank Global Family Office Report surveyed 333 single family offices across 30 countries from May to July 2025, revealing a financial ecosystem in transformation. Family offices are increasingly mirroring institutional investors, with alternatives becoming strategic pillars rather than tactical complements. Artificial intelligence dominates investment themes, yet a paradox emerges: while 65% prioritize AI investments, 79% have zero exposure to the infrastructure required to power it.

Key headlines include:

• 86% of family offices lack a clear succession plan
• 38.4% average allocation to public equities; 30.8% to private investments
• 65% cite AI as a top investment priority

What Are Family Offices Investing In?

Portfolio Allocation Breakdown

Family offices maintain a diversified yet private-market-focused approach:

Private equity leads growth intentions, with 37% of participants planning to increase allocations in the next 12–18 months—the highest of any asset class. This reflects a broader trend: 2.5x as many families are increasing private investment allocations as reducing them.

The Cash Problem

A significant 31% of family offices hold 10% or more of their assets in cash, creating a yield drag that many recognize as problematic. Cash is now the top asset class targeted for reduction as families seek to optimize returns in a shifting interest rate environment.

Zero Exposure Gaps

The report reveals striking allocation voids:

• 89% have no cryptocurrency exposure
• 79% have zero infrastructure allocation
• 76% have no secondary private equity exposure
• 72% have no gold exposure

This creates a notable disconnect: while AI dominates investment priorities, the physical backbone required for AI growth—data centers, power infrastructure, connectivity—remains largely ignored.

How Are Regional Strategies Different?

U.S. vs. International Family Offices

U.S. family offices demonstrate roughly one-third more aggressive positioning in private investments, while international counterparts favor the stability of fixed income at nearly double the rate.

Currency Considerations

67% of international family offices evaluate portfolios in U.S. dollars, underscoring the currency’s continued dominance as the global reserve benchmark for wealth measurement.

Technology Preferences

Regional technology investment preferences diverge significantly:

• Automation/Robotics: International (40%) vs. U.S. (29%)
• Food/Agricultural Tech: International (35%) vs. U.S. (15%)
• U.S. Mid/Small Caps: U.S. offices show 24% focus, significantly outpacing international peers

Why Is AI the Dominant Investment Theme?

Artificial Intelligence Leads All Themes

65% of global family offices cite AI as a priority investment theme, far outpacing other areas:

The Infrastructure Paradox

Despite AI enthusiasm, 79% maintain zero allocation to infrastructure—the data centers, power systems, and connectivity required to run AI at scale. This represents a significant opportunity gap for forward-thinking offices.

Expert Perspective

“Alternatives are no longer a tactical complement, but a strategic pillar… We’re deploying more capital than ever as families seek durable income streams.” — Kristin Kallergis Rowland, Global Head of Alternative Investments

Recommended AI Investment Approach

The report suggests investing in the “application layer” of AI through growth equity or venture capital, though 57% currently have no exposure to these investment stages.

What Are the Biggest Risks Facing Family Offices?

Top Risk Rankings

Geopolitics ranks as the #1 risk, with 20% placing it in the top position. The complete top-five risk concerns:

Regional Risk Perception Differences

• Geopolitics: International offices (74%) vs. U.S. (57%)
• Interest Rates: U.S. offices (64%) vs. International (55%)

Inflation Hedging Behavior

Family offices viewing inflation as a top risk allocate nearly 60% to alternatives—20 percentage points higher than average—demonstrating how risk perception directly shapes portfolio construction.

Why Is Succession Planning the Critical Gap?

The 86% Problem

86% of family offices lack a clear succession plan for key decision-makers, creating existential continuity risk. This is compounded by:

• 28% citing “unpreparedness of the rising generation” as a top risk
• 25% intentionally shielding younger family members from the full extent of family wealth

Next-Generation Engagement Strategies

Despite succession gaps, 76% of offices have strategies to engage the next generation:

Regional Engagement Approaches

• Philanthropy for engagement: U.S. families (43%) vs. International (24%)
• Operating business involvement: Higher internationally, where 68% of families own operating businesses vs. 51% in the U.S.

Expert Guidance

“We recommend that families start thinking about these issues earlier, through every stage of the family office lifecycle.” — Elisa Shevlin Rizzo, Head of Family Office Advisory

How Do Governance Structures Evolve?

Generational Governance Progression

Governance adoption doubles from the first generation to the second:

Operating Business Effect

Families with operating businesses demonstrate stronger governance practices:

• 48% have formal governance structures (vs. 40% without businesses)
• However, 41% cite internal conflict as a top risk (nearly double the 23% of non-business owners)

Asset Integration Challenge

Only 48% of business-owning families consider the operating company’s risk profile when allocating their financial portfolio—suggesting a dangerous disconnect between business and investment risk management.

Expert Insight

“In families with operating companies, governance does more than protect the business—it’s essential in protecting the family franchise.” — Steven Faulkner, Head of Private Business Advisory

What Does It Cost to Run a Family Office?

Operating Cost Benchmarks

The “0.5% to 1% of assets” rule of thumb is unreliable—costs vary significantly based on complexity, services insourced, and family needs.

Staffing Structure

Most common roles include:

• CEO/President: ~40% of offices
• CIO (Chief Investment Officer): ~30% of offices
• Emerging role: 37% are considering hiring a “Chief Learning Officer”

Insourcing vs. Outsourcing Decisions

80% of offices outsource some portfolio management, with 33% of large offices ($1B+) outsourcing more than half their portfolio.

What Is the Cybersecurity Imperative?

Critical Service Need

32% of family offices cite cybersecurity as their greatest service need or gap, making it both an investment theme and an operational necessity.

Expert Warning

“Vigilance and proactive defenses are critical to safeguarding assets and family office operations.” — Ileana van der Linde, Head of Cyber Advisory

The dual nature of cybersecurity—as both investment opportunity and operational requirement—positions it uniquely among family office priorities.

What Return Targets Do Family Offices Pursue?

Performance Expectations

The majority cluster around moderate-to-aggressive growth expectations, with one-third pursuing double-digit returns requiring significant risk-taking or alternative exposure.

Strategic Recommendations: What Should Family Offices Do?

Portfolio Optimization

1. Reduce cash drag to optimize yield as interest rates evolve
2. Consider infrastructure investments to bridge the AI-infrastructure disconnect
3. Explore secondary private equity where 76% currently have zero exposure
4. Align portfolios with risk concerns: inflation-worried offices should increase real assets and hedge funds

Succession and Governance

1. Formalize governance early and establish a “North Star” mission statement
2. Stop over-shielding the next generation—use financial education and advisor meetings
3. Treat succession planning as risk management, equal to market disruption concerns

Operational Excellence

1. Outsource technical expertise (investing, cyber, legal) while keeping high-touch family services internal
2. Leverage aggregated reporting platforms to reduce manual spreadsheet work
3. Create holistic risk views that integrate operating business exposure

The Family Office of 2026

The 2026 family office landscape reflects sophisticated investors increasingly operating like institutions while navigating unique family dynamics. The convergence toward alternatives as strategic pillars, the AI investment enthusiasm contrasted with infrastructure blindspots, and the persistent succession planning gap define this moment.

Family offices that succeed will bridge these contradictions: investing in AI while building its infrastructure, preparing the next generation while protecting family privacy, and building governance frameworks that scale across generations.