2026 Global Family
Office Report
A WORLDWIDE VIEW INTO FAMILY OFFICE STRATEGY
2
Foreword
We are pleased to present our 2026 Global Family Office Report. Drawing on insights from more than 300
single family offices worldwide, we are deeply grateful to all participants for sharing their perspectives. Their
openness enables us to offer a clear, data-driven view of how family offices—across regions and asset sizes—
are navigating growth, complexity, and the evolving priorities and aspirations of today’s wealthiest families.
At . Morgan, we have the privilege of working with families who think long-term—not only about financial
returns, but also about the stewardship of values, legacy and relationships. Over the past decade, the
number, size and scope of global family offices have expanded significantly. Today, single family offices
are sophisticated enterprises overseeing substantial wealth, with investments and capabilities that span
industries, borders and generations. Delivering thoughtful, tailored solutions to these families requires
more than just technical expertise; it demands a strategic, adaptive approach providing access to the right
specialists, insights and resources.
This report offers a timely snapshot of how family offices are approaching key decisions, from portfolio
allocations and private investments to succession, engagement and family office operations. While every
family office is unique, consistent themes emerge around growth opportunities, risk management and the
challenges families face both on and off the balance sheet.
We hope you find these insights both informative and valuable as you shape the future of your family
enterprise. Should you have any questions or wish to explore any specific topics covered in the report, your
. Morgan team stands ready to support you.
Mary Callahan Erdoes
Chief Executive Officer
Asset & Wealth Management
David Frame
Chief Executive Officer
Global Private Bank
Andrew L. Cohen
Executive Chairman
Global Private Bank
Natacha Minniti
Global Co-Head of the
Family Office Practice
William C. Sinclair
Global Co-Head of the
Family Office Practice
Adam Tejpaul
Chief Executive Officer
International Private Bank
3
Introduction
Our 2026 Global Family Office Report reflects the perspectives of 333 family offices
across 30 countries around the world, our largest and most diverse respondent group
yet. The wide range of participants allows for comprehensive and nuanced regional
comparisons, providing a detailed view of the structure and priorities shaping today’s
family office landscape.
The survey was conducted from May 2025 through July 2025 during a period marked by notable
transitions in global markets and geopolitics. This context is reflected in the findings, particularly around
investment risks, when political turmoil, economic uncertainty, inflation and trade tensions were top of
mind. Yet the results also underscore the resilience and adaptability of these families, whose responses
show sophisticated, well-diversified portfolios, increased interest in private investments and artificial
intelligence (AI), as well as a growing emphasis on building long-term family cohesion.
This report focuses on three key areas:
Portfolio allocations
Succession and engagement
Structural and organizational foundations
Within each, we highlight patterns, emerging trends and pragmatic insights, including a spotlight on the
influence that owning a separate operating business can have on family office strategy. These findings
are complemented by perspectives from specialists across . Morgan, offering additional expertise and
actionable takeaways.
We sincerely thank the family office principals and professionals who participated in this study, and we’re
grateful for both their time and knowledge. While each family office is distinct, shaped by the families they
serve, the aggregated responses offer a strategic benchmark for families considering how to structure,
optimize or expand their offices. These learnings can guide families who are overseeing a longstanding
enterprise, as well as those who are considering establishing a new family office.
4
2026 GLOBAL FAMILY OFFICE REPORT
Five key takeaways
1 AI ambition outpaces allocation, infrastructure overlooked
The promise of artificial intelligence is profound, but family offices lack key
exposure.
65% of global family offices plan to prioritize AI investments now or in the future, but over half have
no current exposure to growth equity or venture capital, which focuses on the companies that could
drive the most explosive innovation. At the same time, 79% of family offices have 0% allocation to
infrastructure, despite its role as the physical backbone of AI through power, connectivity and
logistics.
2 Inflation concerns push family office capital toward alternatives
With inflation risks top of mind, investors are turning to alternatives for resilience.
Global family offices that view inflation as their primary risk allocate nearly 60% to alternatives,
roughly 20 percentage points higher than the average. These offices focus especially on hedge funds
and real estate, where average allocations are nearly double (25% versus 12%).
3 Despite geopolitical fears, family offices avoid gold and crypto
Despite the pervasive sense of geopolitical risks, appetite for traditional and
emerging hedges remains limited.
72% of global family offices have no gold exposure, and 89% have no exposure to cryptocurrencies.
4 Stronger governance, stronger bonds for business-owning families
As family enterprises grow more complex, governance is critical for managing
both risk and relationships.
41% of business-owning families identify internal conflict as a top three risk, nearly double the rate of
their non-business owning peers. In response, these families are also far more likely to have strong
governance measures in place, recognizing that effective governance helps align stakeholders,
strengthen trust and support long-term continuity beyond financial or operational considerations.
5 Competition for talent drives operating costs higher
Family offices continue to invest heavily in their operations, even as cost
pressures and competition for top talent intensifies.
$: The average annual operating cost for a $1 billion+ global family office.
INVESTMENT PRODUCTS: • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
5
Contents
About the survey
01 Portfolio allocations
Top risks impacting current portfolio positioning and outlook
Current allocations continue to favor risk assets
Areas of no exposure
Areas of focus led by private equity, AI and healthcare innovation
Private investments continue to gain momentum
02 Succession and engagement
Formal governance begins with family investments
Family gatherings lead cohesion and alignment efforts
Family offices lack succession planning but are engaging with the
rising generation
03 Spotlight on operating businesses
Balancing operating businesses and financial investments
Governance is an anchor for family offices with an operating business
04 Strategic and operational
foundations
Top risks to family office continuity and effectiveness
Top strategic priorities for family offices
Family offices are making meaningful investments in annual
operating costs
Strategic outsourcing and the use of external investment expertise
Concluding remarks
Appendix
2026 GLOBAL FAMILY OFFICE REPORT
About the survey
This year’s findings are based on an online
survey conducted with our global single
family office client community. Following
data collection, we partnered with an
independent research firm to anonymize
responses and ensure rigorous analysis.
AN IMPORTANT NOTE ABOUT THE CHARTS
Due to rounding, numbers presented throughout this
report may not add up precisely to the related totals.
333
PARTICIPATING SINGLE FAMILY OFFICES
30 COUNTRIES REPRESENTED
197 . PARTICIPANTS
136 INTERNATIONAL PARTICIPANTS
75%
INCREASE FROM
2024 REPORT
20262024
0
50
100
150
200
250
300
350
333n
190n
United States
59
United S
%
tates
United States 197n
Northeast 23%
Midwest 16%
South 47%
West 14%
Top 10 . states
New York 15%
Texas 15%
Florida 15%
Delaware 8%
California 6%
Illinois 6%
Ohio 4%
Pennsylvania 4%
Connecticut 3%
Tennessee 3%
International
16%
LATAM
Top countries LATAM 54n
Mexico 15%
Brazil 7%
Chile 6%
Panama 3%
14%
EMEA
Top countries EMEA 46n
Germany 10%
Italy 7%
Switzerland 4%
Netherlands 2%
11%
APAC
Top countries APAC 36n
Singapore 15%
Hong Kong 5%
Australia 2%
Malaysia 1%
n = number of respondents
6
2026 GLOBAL FAMILY OFFICE REPORT
The wealth
behind the data
AVERAGE NET WORTH OF PARTICIPANTS
$ billion
• $518 billion in estimated
collective net worth of all
respondents
ASSETS UNDER SUPERVISION
$1,165,991,000
GLOBAL MEAN
28%
$1B+
16%
$501MM—
$999MM
20%
$251MM—
$500MM
37%
$250MM
or less
Profile of the family offices and the families they serve
FAMILY OFFICE AGE
When established:
LAST 5 YEARS 29%
23%
26%
22%
6–10 YEARS
11–20 YEARS
20+ YEARS
NUMBER OF FAMILY MEMBERS
GLOBAL MEAN
1–4
5–9
10–14
15–29
30+
31%
30%
16%
17%
6%
NUMBER OF GENERATIONS
GLOBAL MEAN
1
2
3+
13%
44%
44%
NUMBER OF HOUSEHOLDS
GLOBAL MEAN
1
2
3
4
5
25%
8%
19%
12%
36%
7
8
01 Portfolio
allocations
AT-A-GLANCE FINDINGS
• On average, approximately 75% of assets are allocated to a
combination of public equities and alternatives investments, with
. large-cap equities dominating public holdings and drawdown
funds leading privates
• Geopolitics most frequently tops the list of current investment
risks, followed by interest rates, economic growth, inflation and
trade policy
• 37% of participants expect to raise their allocations to private equity
within the next 12 to 18 months—the highest among all asset classes
• times as many families are increasing private investment
allocations as opposed to reducing them
• 65% are prioritizing AI-related investments
• 89% remain on the sidelines when it comes to crypto, and more than
70% have no exposure to infrastructure, secondaries or gold
• Possible sign of caution: 31% hold 10% or more of assets in cash,
though cash is also the most frequently cited asset class targeted for
reduction in the upcoming months
9
PORTFOLIO ALLOCATIONS
Investment management remains the cornerstone
of most family offices, and this year’s survey
captures sentiment amid a rapidly shifting market
landscape. The backdrop seems constructive
for portfolios. A . rate-cutting cycle should
support a rebound in global growth, and earnings
growth for global equities seems durable. Still,
the long era of low inflation and seamless
globalization is clearly over. In its place, three
powerful, interconnected forces are redefining the
investment frontier.
AI is driving profound transformation, yet it’s also introducing new
risks of overinvestment, excess exuberance and labor disruption.
Fragmentation is reshaping the global order, as competing blocs,
contested supply chains and fragile alliances redirect trade and
capital flows, and make access to natural resources and energy
a strategic imperative. Meanwhile, inflation, though less visible,
continues to undergo a structural shift, likely making it more volatile
than pre-pandemic trends and more prone to upward shocks, which
poses a more persistent risk to purchasing power and long-term
wealth preservation.
This new landscape brings both investment promise and pressure,
heightening macro risks and reinforcing the importance of building
strategic exposures and diversification against disparate market
outcomes. At the same time, it presents expanding opportunities
that many offices are actively pursuing or evaluating.
This section explores how family offices are allocating capital
today, where they plan to increase exposure, and how these moves
align—or at times diverge—from the dominant investment risks they
currently see in the market. The findings reveal a landscape marked
by selective repositioning and evolving priorities as families adapt
their investment approaches.
IMPORTANT ASSET CLASS DEFINITION
Alternative investments are defined to include: 1) private
investments, 2) hedge funds and 3) commodities. Private
investments include the following sub-asset classes: private equity,
real estate, control-oriented private investments, growth equity
and venture capital, private credit, secondaries, infrastructure,
transportation and other real assets.
10
PORTFOLIO ALLOCATIONS
Top risks impacting current portfolio positioning and outlook
2025 was a year defined by transition: a new . presidential
administration, the resumption of a . Federal Reserve interest-
rate-cutting cycle, and continued focus on AI spending, progress and
adoption. Against this backdrop, respondents were asked to identify
the top five factors they see as posing the greatest risks to portfolio
performance and outlook. At the macro level, geopolitics—along with
trade policy and tariffs—clearly dominates the risk landscape. One in
five family offices globally (20%) identify geopolitics as the number
one risk, far surpassing any other category. Inflation also remains a
central concern (nearly 60% cite it as a top risk) as families grapple
with a complicated backdrop of both structurally higher and more
volatile inflation.
Geography plays a meaningful role in shaping these views.
International offices are more likely to see geopolitics and trade
tensions as the most significant threats, reflecting their greater
exposures to cross-border capital flows and regional political
uncertainty. .-based offices, in contrast, tend to focus more on
interest rates and inflation, consistent with domestic market drivers
such as the lingering effects of post-pandemic monetary tightening,
tariffs and political pressure on the Federal Reserve.
GEOPOLITICS IS THE MOST FREQUENTLY CITED NUMBER ONE INVESTMENT RISK
Exhibit 1: What are the top risks (ranked) impacting your current portfolio positioning and outlook?
Overall respondents reporting:
Risks most often ranked #1 globally Top five risks in the United States Top five risks internationally
Geopolitics 20%
Liquidity 12%
Trade policy and tariffs 12%
Asset valuations 11%
Economic growth 10%
Portfolio concentrations 10%
Interest rates 64%
Inflation 61%
Economic growth 61%
Geopolitics 57%
Asset valuations 56%
Geopolitics 74%
Trade policy and tariffs 60%
Economic growth 57%
Interest rates 55%
Currency 45%
Top risk perceptions drive different portfolio positioning
GEOPOLITICS AS THE TOP RISK
2X
allocation to gold
(2% versus .9%)
+5% pts
to fixed income
(% versus %)
Compared to all respondents
INFLATION AS THE TOP RISK
~60%
allocation to alternatives
(22% pts higher than the average)
2X exposure
to real estate
(% versus %)
2X exposure
to hedge funds
(9% versus %)
Compared to all respondents
本报告来源于三个皮匠报告站（）,由用户Id:863553下载,文档Id:1102880,下载日期:2026-02-23
11
PORTFOLIO ALLOCATIONS
Target returns are optimistic, yet achievable
Most (55%) of the family offices surveyed said they targeted a return of between 7% and 10%, which, based on . Morgan Asset
Management’s Long-Term Capital Market Assumptions (LTCMAs), seems high but achievable. For context, the firm’s LTCMAs suggest
that a standard 60/40 stock/bond portfolio should deliver a % return over the next 10–15 years. Adding more risk assets and
privates to the mix could plausibly increase that return into the 7%–10% range. However, one-third of family offices target a return
of greater than 11%. The highest expected return asset in the firm’s LTCMAs (private equity) is %. Notably, family offices that are
targeting 11% plus returns are relying on private markets to do so, allocating 10 percentage points more to private investments and
four percentage points more to control-oriented private investments, taking their average private investment allocations to over 40%.
Current allocations continue to favor risk assets
On average, portfolios are largely diversified, with a clear
preference toward risk assets. Public equities (%) and private
investments (%) account for more than two-thirds of assets.
Fixed income, the third-largest average asset class exposure
(%), rounds out this portfolio core to account for a total of
84% of overall assets (see Exhibit 2).
Within private investments, average allocations are diversified across
a range of different holdings, with the largest in private equity (%),
real estate (%) and control-oriented private investments (%). See
page 19 for more insight on private investments.
Allocations to hedge funds remain relatively modest (%),
a consistent trend over the past decade. Notably, the largely
uncorrelated nature of most hedge funds can provide diversification
benefits during periods of investment volatility, equity market
concentration, and elevated correlations between stocks and bonds.
Despite these being key investment concerns noted above, the
average allocation seems low in our view.
Average allocations across regions are broadly similar, though
. offices appear markedly more comfortable taking risk than
international offices. On average, . offices hold roughly one-
third more in private investments (% versus %) and a
corresponding lower share in fixed income (% versus %).
Given the globally accessible universe of private opportunities,
both direct and fund-based, the nearly 10-point differential likely
reflects regional differences in taxation, risk appetite and liquidity
preferences.
Amid these broad averages, one key observation is how family office
allocations continue to converge with those of institutional investors,
particularly within alternative investments, a logical parallel, as both
can invest with multigenerational time horizons.
PUBLIC EQUITIES AND PRIVATE INVESTMENTS ARE THE TWO LARGEST ALLOCATIONS
Exhibit 2: Average portfolio asset allocations (net)
Global
%
Other
%
Public equities
%
Fixed
income
%
Cash
%
Hedge funds
%
Commodities
1%
Art/collectibles
%
Crypto/
digital assets
%
Private investments
Private equity
Secondaries
Growth equity & venture capital
Private credit
Real estate
Infrastructure, transportation & other
real assets
Control-oriented private investments
%
%
%
%
%
%
%
Global clients
12
PORTFOLIO ALLOCATIONS
PUBLIC EQUITIES AND PRIVATE INVESTMENTS ARE THE TWO LARGEST ALLOCATIONS
Exhibit 2 (cont): Average portfolio asset allocations (net)
United States
%
Other
%
Public equities
%
Fixed
income
%
Cash
%
Hedge funds
%
Commodities
%
Art/collectibles
%
Crypto/
digital assets
%
Private investments
Private equity %
Secondaries %
Growth equity & venture capital %
Private credit %
Real estate %
Infrastructure, transportation & other
real assets
%
Control-oriented private investments %
United States
International
%
Other
%
Public equities
%
Fixed
income
%
Cash
%
Hedge funds
%
Commodities
%
Art/collectibles
%
Crypto/
digital assets
%
Private investments
Private equity
Secondaries
Growth equity & venture capital
Private credit
Real estate
Infrastructure, transportation & other
real assets
Control-oriented private investments
%
%
%
%
%
%
%
International
13
We’ve witnessed a clear shift in how families
allocate capital.
Alternatives are no longer a tactical complement,
but a strategic pillar. Across private equity, private
credit, real assets and hedge funds, we’re deploying
more capital than ever as families seek durable
income streams, access to innovation and diversified
sources of return.
Notably, family offices are emerging as highly
strategic sources of capital for private companies and
sponsors—able to move quickly, commit flexibly and
partner for the long term. The momentum behind
these allocations reflects a long-term conviction that
the most compelling opportunities, and the most
attractive risk-adjusted returns, are increasingly
found in alternative assets.
Kristin Kallergis Rowland
Global Head of Alternative Investments
. Morgan Asset & Wealth Management
14
PORTFOLIO ALLOCATIONS
Another global similarity beyond allocations
International offices predominantly evaluate their portfolios in .
dollars, underscoring its continued role as the world’s dominant
currency. A full 67% use the currency, led by Latin America (96%)
and Asia-Pacific (81%), compared to EMEA (22%, with 74% preferring
the euro). While family offices may continue to look for alternative
stores of value for the . dollar, it still seems set to be the world’s
dominant currency. For comparison, average global allocations to
gold (%) and Bitcoin (%) are quite muted.
Allocation ranges
Exhibit 3 drills down into the broader allocation averages, highlighting
what percentage of family offices allocate to each of the larger asset
class exposures and select underlying segments. It presents the
data in range bands (., 1%–9%, 10%–29%, 30%+), illustrating the
proportion of offices investing at each level.
. large-cap equities dominate public equity allocations both for
offices in the United States and outside the United States. In fact,
more than 80% globally have little or no equity exposure to . mid/
small caps or international developed market equities in Europe/
United Kingdom. This points to a disconnect with the asset valuation
risk fears highlighted in the prior section, given the strong runups in
. large caps, especially mega caps over the past several years.
More than 30% of family offices hold 10% or more of their assets
in cash. While a portion of this cash may be strategic in nature,
often times the sum total is not, with relatively high levels such as
these often less than ideal. This is particularly true for offices citing
inflation as a top concern, given that the risk of ongoing erosion in
purchasing power intensifies when inflation remains persistent. It
may reflect a vestige of the past high-rate cycle, but as the economy
continues to move through a non-recessionary rate-cutting cycle,
maintaining such high balances may risk missing return targets or, at
the very least, opportunities to better optimize yield across cash and
short-term fixed income assets.
67%
of international family offices
EVALUATE THEIR PORTOLIO IN
. DOLLARS
. LARGE-CAP EQUITIES TEND TO DOMINATE PORTFOLIO ALLOCATIONS, FOLLOWED BY PRIVATE EQUITY AND REAL ESTATE
Exhibit 3: How much of your portfolio are you investing in the following asset classes and underlying segments?
(Select segments shown; refer to appendix on page 43 for full allocation details)
Global
ALLOCATION SIZE 0% 1%–9% 10%–29% 30%+
PUBLIC EQUITIES
. large-cap equities 9% 17% 41% 33%
. mid-/small-cap equities 40% 40% 18% 3%
International developed market equities (Europe & .) 41% 41% 16% 2%
PRIVATE INVESTMENTS
Private equity 22% 36% 34% 8%
Real estate 40% 32% 22% 6%
Growth equity & venture capital 57% 31% 11% 1%
Private credit 58% 33% 9% 0%
Infrastructure, transportation & other real assets 79% 19% 2% 0%
FIXED INCOME
Investment grade corporate bonds 51% 22% 20% 7%
. Treasury bonds 58% 28% 12% 2%
. municipal bonds 77% 16% 6% 2%
CASH 23% 46% 26% 5%
Global
15
PORTFOLIO ALLOCATIONS
. LARGE-CAP EQUITIES TEND TO DOMINATE PORTFOLIO ALLOCATIONS, FOLLOWED BY PRIVATE EQUITY AND REAL ESTATE
Exhibit 3 (cont): How much of your portfolio are you investing in the following asset classes and underlying segments?
(Select segments shown; refer to appendix on page 43 for full allocation details)
United States
ALLOCATION SIZE 0% 1%–9% 10%–29% 30%+
PUBLIC EQUITIES
. large-cap equities 7% 14% 39% 40%
. mid-/small-cap equities 29% 44% 22% 5%
International developed market equities (Europe & .) 48% 39% 13% 0%
PRIVATE INVESTMENTS
Private equity 23% 32% 35% 10%
Real estate 31% 36% 26% 7%
Growth equity & venture capital 52% 33% 13% 2%
Private credit 58% 32% 10% 0%
Infrastructure, transportation & other real assets 83% 16% 2% 0%
FIXED INCOME
Investment grade corporate bonds 65% 25% 9% 0%
. Treasury bonds 58% 30% 11% 1%
. municipal bonds 63% 24% 10% 3%
CASH 24% 46% 26% 4%
International
United States
ALLOCATION SIZE 0% 1%–9% 10%–29% 30%+
PUBLIC EQUITIES
. large-cap equities 12% 20% 45% 24%
. mid-/small-cap equities 54% 35% 11% 0%
International developed market equities (Europe & .) 32% 43% 21% 4%
PRIVATE INVESTMENTS
Private equity 21% 42% 32% 4%
Real estate 54% 27% 15% 4%
Growth equity & venture capital 65% 28% 7% 0%
Private credit 57% 35% 7% 0%
Infrastructure, transportation & other real assets 74% 24% 2% 0%
FIXED INCOME
Investment grade corporate bonds 31% 18% 35% 16%
. Treasury bonds 58% 26% 14% 2%
. municipal bonds 97% 3% 0% 0%
CASH 22% 46% 26% 6%
International
16
PORTFOLIO ALLOCATIONS
Areas of no exposure
Also revealing are the areas where many offices are not investing
(Exhibit 4). Despite the headlines and hype around crypto and other
digital assets, the vast majority of family offices (89%) remain on
the sidelines. This could reflect a debate that we are also having
within . Morgan: What role should cryptocurrency and other digital
assets play in a portfolio, and, perhaps more importantly, how much
should a portfolio own, given their elevated volatility and inconsistent
correlation with other assets?
Many are also not investing in infrastructure (79%), private credit
(58%) and real estate (40%), all notable, given our view that inflation
is likely to have a higher floor and more volatility in the next few
years, and the historical inflation-hedging characteristics of these
asset classes.
Similarly, even with the relatively large allocations to private
investments noted above, 76% of offices have no exposure to
secondary private equity, a segment that currently offers some of the
most compelling risk/reward opportunities in private markets today.
Nearly three-quarters (72%) of offices are not investing in gold, and
as noted earlier, those that appear to be are investing very little,
with an average global allocation of only %. Finally, 57% report
no exposure to growth equity or venture capital, even as 65% of
offices globally identify AI as a top investment theme (page 18), and
these are the stages where much of the emerging application-layer
innovation in AI is likely to occur.
MORE THAN THREE-QUARTERS OF GLOBAL FAMILY OFFICES HAVE ALLOCATED 0% TO CRYPTO,
INFRASTRUCTURE AND SECONDARIES IN THEIR PORTFOLIOS
Exhibit 4: Portfolios with 0% allocations, globally
(Showing 10 out of 37 asset classes)
Crypto or digital assets
Infrastructure, transportation
& other real assets
Secondaries
Gold
Private credit
Growth equity & venture capital
Emerging market equities
(including China)
Hedge funds
Real estate
International developed
market equities
89%
79%
76%
72%
58%
57%
53%
51%
40%
37%
Private investments
17
PORTFOLIO ALLOCATIONS
Areas of focus led by private equity, AI and healthcare innovation
When asked about planned increases and decreases in asset
class exposures over the next 12–18 months, family offices signal
a continued focus on growth-oriented and diversified risk assets
(Exhibit 5). Private equity stands out as a clear priority, with 37% of
global respondents planning to increase allocations, the highest of
any asset class, and a strong vote of confidence in a market segment
that has struggled in the past several years relative to global large-
cap equities. This emphasis extends across private investments
broadly, capturing more than half of the top 10 spots globally,
including real estate (30%), growth equity and venture capital (29%),
private credit (29%), secondaries (28%) and infrastructure (24%).
Equities also attract attention globally, led by European and .
securities (33%), . large caps (28%) and . mid/small caps
(21%), the latter reflecting demand from . offices (24%). The
positive view on European equities correlates with more appetite to
invest in security, defense, energy and infrastructure in the region.
On the fixed income side, only investment grade bonds (19%) make
the global top 10, securing the last spot thanks to interest from
international offices (22%).
Planned asset class reductions are led by cash (21%) and . large
caps (19%), potentially reflecting profit-taking after strong gains in
recent years. Additionally, 11% anticipate lowering investment grade
bond exposure. Notably, only a few are planning decreases in private
investments. In fact, times as many offices are increasing private
investment exposure as opposed to reducing it.
AS MANY GLOBAL FAMILY
OFFICES ARE INCREASING
PRIVATE INVESTMENT
EXPOSURE AS OPPOSED
TO REDUCING IT
PRIVATE EQUITY TOPS THE ASSET CLASSES FAMILY OFFICES PLAN TO INCREASE
Exhibit 5: Do you plan to increase exposure to the following asset classes over the next 12 to 18 months?
(Top 10 out of 19 asset classes)
. clients
Global United States International
Private equity 37%
Europe & . equities 33%
Real estate 30%
Private credit 29%
Growth equity &
venture capital
29%
. large-cap equities 28%
Secondaries 28%
Infrastructure,
transportation & other
real assets
24%
. mid-/small-cap equities 21%
Investment grade fixed income 19%
Private equity 37%
Real estate 35%
Europe & . equities 33%
Private credit 30%
Growth equity &
venture capital
29%
. large-cap equities 28%
Secondaries 27%
. mid-/small-cap equities 24%
Infrastructure,
transportation & other
real assets
21%
Control-oriented private
investments
19%
Private equity 38%
Europe & . equities 34%
Secondaries 29%
Growth equity &
venture capital
29%
Private credit 29%
. large-cap equities 28%
Infrastructure,
transportation & other
real assets
27%
Real estate 24%
Investment grade fixed income 22%
Japan equities 20%
18
PORTFOLIO ALLOCATIONS
From a thematic perspective, AI (65%), healthcare innovation (50%) and infrastructure (41%) lead the top 10 areas where offices
globally are currently focused or plan to prioritize in the future (Exhibit 6). AI, in particular, is expected to drive opportunities across
multiple categories, potentially expanding overall exposure. Regionally, international offices show stronger interest than . offices
in automation and robotics (40% versus 29%), and food and agricultural innovation (35% versus 15%). In the United States, sports
investing also stands out, attracting 19% of offices’ attention compared with 10% of international offices.
AI TOPS THE INVESTMENT THEMES GLOBAL FAMILY OFFICES ARE PRIORITIZING
Exhibit 6: Which of the following themes are part of your portfolio today or ones you plan to prioritize in future investments?
65%
ARTIFICIAL
INTELLIGENCE
50%
HEALTHCARE
INNOVATION
41%
INFRASTRUCTURE
ASSETS
35%
CYBERSECURITY
34%
GLOBAL SECURITY
& DEFENSE
33%
AUTOMATION
& ROBOTICS
23%
FOOD & AGRICULTURAL
INNOVATION
22%
SMART
MOBILITY
20%
CLIMATE TECHNOLOGY
& SOLUTIONS
17%
CRYPTO &
DIGITAL ASSETS
16%
RESHORING/
ON-SHORING
15%
SPORTS
14%
SPACE
EXPLORATION
13%
WATER
SCARCITY
12%
MEDIA &
ENTERTAINMENT
5%
OTHER
19
PORTFOLIO ALLOCATIONS
Private investments continue to gain momentum
Family offices continue to increase allocations to private investments,
reflecting a convergence toward institutional-style portfolios in
which private assets play a central role. The complexity and scale
of these assets demand significant time, expertise and human
capital—keeping privates top of mind for offices focused on long-
term growth. Drawdown funds are the most common way to access
private investments, utilized by 67% of offices globally (Exhibit 7).
This is closely followed by 64% investing in direct control minority
ownership positions. Half (49%) hold direct control majority
ownership positions, while 40% invest through fund-of-funds
strategies, and 35% invest through evergreen funds.
Not only are they popular, drawdown funds also command significant
allocations: 35% of offices dedicate 50% or more of their private
investment allocations to them. This emphasis increases with AUS
(Exhibit 8). The share of offices allocating 50% or more rises from
26% for those with $250 million or less to 30% for $251 million–$500
million, 42% for $500 million–$999 million, and 44% for $1 billion or
more. Direct control positions also attract significant allocations, with
47% of offices allocating more than half of their private investments
to either majority (27%) or minority (20%) ownership positions,
although slightly more than half (51%) hold no majority stakes.
The relatively lower reported adoption of evergreen funds stands in
contrast to the rapidly growing interest in these strategies that we
have observed in recent years, with new flows through our platform
approaching twice those of drawdown funds. These responses may
simply reflect the long lockup periods typical of private investments,
since the segment is still in early stages relative to drawdowns. We
expect it should expand in the longer term as it continues to evolve
and older closed-end vintages reach fund termination.
DRAWDOWN FUNDS AND DIRECT MINORITY OWNERSHIP POSITIONS ARE THE MOST WIDELY USED WAYS TO
ACCESS PRIVATE INVESTMENTS
Exhibit 7: How is your private investment portfolio allocated across the following investment structures/strategies?
Total % investing % of total private investment allocations
Drawdown/closed-end funds 67% 34% 32% 35%
Direct company control or
minority ownership
64% 36% 44% 20%
Direct company control
majority ownership
49% 51% 22% 27%
Fund of funds investments 40% 60% 32% 8%
Evergreen/open-ended funds 35% 65% 31% 4%
0% 1%–49% 50%–100%
LARGER FAMILY OFFICES LEAN MORE HEAVILY INTO DRAWDOWN FUNDS
Exhibit 8: Percentage of global family offices investing more than 50% in drawdown funds by AUS
50
Share of
global family
o’ces allocating
over 50%
40
30
20
10
0
Less than $250MM $251MM–$500MM $500MM–$999MM $1B+
Global assets under supervision
02 Succession and
engagement
20
AT-A-GLANCE FINDINGS
• 83% of family offices report having formal governance measures in
place, led by investment committees (64%)
• 76% have rising-generation engagement strategies in place to
prepare younger family members for leadership roles, yet 28% cite
lack of rising-generation preparedness as a top continuity and
effectiveness risk
• 57% cite preserving values, governance and legacy as a key family
office objective
• 86% lack clear succession plans for key family office decision
makers; 51% see this as a significant risk to continuity and
effectiveness
• Governance adoption rises with successive generations, often
doubling or more from the first generation to the second and beyond
in key areas such as investment oversight, family cohesion and family
office decision making
21
SUCCESSION AND ENGAGEMENT
Preserving legacy, values and cohesion is a critical objective for multigenerational families
managing family businesses, investments and other enterprise assets. Nearly six in 10
(57%) global family offices in this year’s survey identify the preservation of family values,
governance and legacy as a top priority.
As families expand and generations multiply, maintaining a shared vision and guiding
principles becomes increasingly complex. The further a family is from its founding generation,
the more acute these challenges become. External events (such as generational transitions,
divorce or the sale of a legacy business) and internal dynamics (such as gaps in family cohesion
and fragmented decision making) can heighten the risk of family conflict or stasis.
These challenges are further underscored by the unprecedented scale of wealth transfer
underway. In the United States alone, an estimated $124 trillion is expected to pass from
Baby Boomers and the remaining Silent Generation to their heirs by 2048, with the bulk
flowing to Generation X and Families are acutely aware of this shift, and there
is a growing emphasis on supporting the rising generation and succession planning, and
recognition of the need for expert guidance, with one in four (27%) reporting a need for
additional support to address governance and succession planning.
Families who maximize their chances of continuity and cohesion tend to focus on three key
elements:
1 Establishing a common mission and vision: This serves as as a guiding “north star”
for the family.
2 Investing in family development: This includes clear communication, regular family
meetings and, for larger families, formal governance structures such as family councils,
as well as constitutions or protocols.
3 Fostering individual growth: This means encouraging education, work experience and
opportunities for family members to explore their own talents and interests.
Our data reinforces these priorities, showing that families are actively taking steps to
strengthen governance, succession planning and engagement across generations.
57%
of global family offices
IDENTIFY THE PRESERVATION OF VALUES,
GOVERNANCE AND LEGACY AS A TOP PRIORITY
1 Cerulli, Cerulli Edge—The Americas Asset and Wealth Management Edition, 2025.
22
SUCCESSION AND ENGAGEMENT
Top governance structures: Investment committees,
investment policy statements and boards of directors
Families adopt different governance systems and structures
depending on their unique circumstances, needs and objectives.
These frameworks often develop in response to specific goals or
challenges, and while they can often start informally, they tend
to become more formalized as families, wealth and enterprises
grow in scale and complexity.
This year’s survey asked which structures family offices have
in place to support oversight, decision making and continuity.
Globally, 83% of family offices report having some degree of
formal governance in place, while roughly one in five (17%) do
not have any structures.
Investment-related structures commonly provide the foundation
for broader formalized frameworks, accounting for three of the
top five measures (Exhibit 9). Since family offices are typically
created to manage investments, it is natural that governance
and professionalization efforts often begin there.
The top five most frequently
mentioned structures or frameworks are:
1 Investment committees (64%), with both family
members and non-family members (42%) or
only family members (22%)
2 Formal investment policy statements (35%)
3 Family office boards of directors (32%)
4 External advisors who conduct periodic
portfolio reviews (27%)
5 Family office mission statements or handbooks (26%)
INVESTMENT-RELATED STRUCTURES LEAD GOVERNANCE PRACTICES
Exhibit 9: Which of the following structures or frameworks are in place to support oversight, decision making and continuity within your
family office?
Global United States International
INVESTMENT MANAGEMENT
Fixed income
Investment committee (family and non-family members) 42% 36% 48%
Formal investment policy statement 35% 33% 38%
External advisors review portfolio periodically 27% 24% 31%
Investment committee (family members only) 22% 24% 19%
Investment decisions made by CIO who is not a family member 20% 19% 22%
GOVERNING BOARDS
Board of directors 32% 27% 40%
Charitable grants committee 14% 19% 6%
Advisory board 13% 11% 16%
Distribution committee 10% 12% 7%
POLICIES AND PROCESSES
Family office mission statement/handbook 26% 27% 25%
Formal employment policy 22% 24% 18%
Defined succession planning process for key roles 14% 14% 13%
23
SUCCESSION AND ENGAGEMENT
Families tend to adopt more formal governance measures as they grow across generations, reflecting their increasing complexity and
evolving needs. Exhibit 10 clearly illustrates this trend: Families spanning two generations have more governance measures in place than
single-generation families, with continued increases as three or more generations become involved.
AS FAMILIES EXPAND ACROSS GENERATIONS, ADOPTION OF GOVERNANCE MEASURES INCREASES
Exhibit 10: Which of the following structures or frameworks are in place to support oversight, decision making and continuity within
your family office?
0%
10%
20%
30%
40%
50%
60%
# of generations served
Advisory
board
Distribution
committee
Defined
succession
planning
process for
key roles
Charitable
grants
committee
Investment
decisions
made by
CIO who is
not a family
member
Investment
committee
composed
of family
members
Formal
employment
policy
Family
o–ce
mission
statement
or
handbook
External
advisors
who review
the
portfolio
periodically
Formal
investment
policy
statement
Board of
directors
Investment
committee
composed
of family
and
non-family
members
1 generation* 7% 7% 7% 7% 17% 19% 17% 10% 10% 33% 14% 24%
2 generations 16% 4% 12% 10% 17% 19% 18% 26% 27% 32% 29% 38%
3+ generations 12% 16% 18% 19% 24% 26% 28% 31% 32% 39% 41% 48%
24
SUCCESSION AND ENGAGEMENT
Family gatherings lead cohesion and alignment efforts
This year’s survey shows that families take deliberate steps
to strengthen their internal bonds, as shared vision and
active engagement is critical to sustaining both the family
and its enterprises. The variety and frequency of these
efforts highlight a commitment to building interconnected
and resilient family governance that can endure across
generations. Among the most common approaches in
place today, family gatherings lead the way, with regular
family meetings (42%), family assemblies (35%) and family
retreats (30%) topping the list. Other strategies families are
considering implementing in the future include hiring a Chief
Learning Officer (37%), establishing a family bank (36%), and
creating a family constitution or bylaws, a statement of values
and common objectives (35%).
Viewed in context with the 57% of global family offices that
identify preserving family values, governance and legacy as a
top strategic priority (page 35), adoption of these engagement
measures remains below 50%, indicating an opportunity for
broader implementation. The level of engagement among
family members and the availability of opportunities for
meaningful contribution can play an important role in the
effectiveness of these measures.
Families who engage in this process often start with three
central questions:
• Why is the family working together?
• What does the family want to achieve?
• How will success be measured?
Best practices for building family
engagement
1 Establish a clear sense of purpose and
shared vision.
2 Invest in the development of the family as an
organizational system. As businesses invest in
team growth and development, so too should
families with shared enterprise assets.
3 Recognize and manage the inherent tension
between individual interests and those of the
family as a whole, creating avenues for
members to contribute in ways aligned with
their talents and passions.
4 Develop decision-making frameworks that
enable effective collaboration on shared assets
and responsibilities.
5 Foster a learning community across
generations, encouraging knowledge sharing
and active engagement beyond top-down
guidance.
SUCCESSION AND ENGAGEMENT
25
As families expand across generations—growing from a single parental generation to multiple branches and geographically dispersed
households—formal engagement initiatives become increasingly important. These initiatives extend beyond traditional gatherings to include
guiding family oversight, formalizing values and mission, preserving legacy and building shared financial infrastructure.
ADOPTION OF COHESION AND ALIGNMENT STRATEGIES RISES AS FAMILIES EXPAND, WITH NEARLY SEVEN IN 10 THAT SPAN THREE OR
MORE GENERATIONS IMPLEMENTING OR ACTIVELY CONSIDERING FORMAL GATHERINGS, COUNCILS AND LEGACY INITIATIVES
Exhibit 11: How is your family office fostering cohesion and alignment across generations today, and how do you see this evolving
in the future?
Currently in place Considering for the future
1 gen 2 gens 3+ gens 1 gen 2 gens 3+ gens
Family constitution (., by-laws, statement of shared values
and common objectives, policies) 5% 19% 37% 36% 39% 30%
Family assembly 21% 34% 41% 21% 29% 26%
Family council 10% 26% 37% 33% 29% 30%
Family retreat 7% 29% 39% 36% 29% 27%
Written family history or regular family “storytelling” 12% 24% 39% 31% 36% 27%
Regular whole family meetings 24% 40% 50% 29% 27% 23%
Chief Learning Officer 2% 3% 7% 24% 39% 39%
Family bank 5% 8% 14% 26% 38% 36%
26
In our work with clients, we see that many
families and their family offices go through
several “lifecycle” stages.
Emerging family offices are often primarily
focused on strategic and tactical issues, and
governance/succession planning is less of a
concern.
As the family matures and expands, and the
family office operations become more solidified,
issues related to family governance, legacy and
succession planning take on greater importance.
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
. Morgan Private Bank
27
SUCCESSION AND ENGAGEMENT
Many offices lack clear succession planning
Succession planning for family office management is a
topic of frequent challenge and concern. It is an area that
takes time, and it is often an ongoing process that requires
commitment and support. Many family offices are leanly
staffed and struggle to identify successors for key roles.
Notably, 86% do not have clear succession plans in place,
and slightly more than half of family offices (51%) consider
the absence of a succession plan for decision makers as a
risk to the continuity and effectiveness of their offices, and
33% ranked it as one of the top three risks.
The level of concern varies by office age, generations served
and staff size. For newer family offices (29% of respondents
in this year’s survey were formed within the last five years),
succession planning may feel premature. However, for
the nearly half (48%) of respondents whose offices were
formed more than 10 years ago, the need for clarity around
succession planning becomes more pressing. In fact, 36% of
offices older than 10 years place it in their top three risks to
the continuity and effectiveness of the family office.
Generational dynamics also influence perceived risk.
Among offices serving two generations, 39% cite the lack
of a clear succession plan as a key concern, compared with
offices serving only one generation, 67% of which report
no concern with the lack of a succession plan for decision
makers in the family office. Offices with six to 10 employees
are more likely to view succession planning as a top three
risk (58%) than larger offices with 11 or more employees
(43%). Additionally, 53% of offices supporting families with
a separate operating business identify succession planning
as a significant concern.
86%
of global family offices
DO NOT HAVE CLEAR SUCCESSION
PLANS IN PLACE FOR DECISION
MAKERS
Most are actively engaging with the rising generation
In working with family offices, one of the most common—and often
most passionately discussed—themes we hear is how to engage younger
members and help them flourish while they develop the skills, judgment
and values necessary to lead effectively and serve as responsible
stewards of the family’s legacy. The coming intergenerational wealth
transfer underscores the critical need to prepare the rising generation to
receive and effectively manage family assets.
While families have historically managed these types of initiatives
themselves, family offices serving multiple generations are now
increasingly involved, often assisting earlier in the process. This growing
collaboration reflects a recognition that preparing the rising generation
for wealth responsibilities is a lifelong journey, and family offices are
playing more active roles in supporting families as they navigate this
important transition.
Three-quarters (76%) of family offices are actively engaging with the
rising generation with an eye toward succession planning (see Exhibit
12). Key focus areas include wealth education, encouraging involvement
with the family and its enterprises, and fostering entrepreneurial spirit
by providing capital support for philanthropic or business interests.
The most common way that families get the rising generation involved is
by inviting younger family members to meet with professional advisors
(39%). Given that family offices outsource many functions to external
providers (page 37), it is natural that families leverage this learning
opportunity and consider it critical for the rising generation to build
strong relationships with these providers. Doing so supports continuity
and helps avoid disruptions to the family enterprise when the next
generation assumes responsibility.
Encouraging philanthropic endeavors (35%) is also a leading area
for learning and engagement, providing a hands-on entry point for
rising-generation development. This strategy is especially favored
by . families (43% versus 24% for international offices). Beyond
philanthropy, international family offices are generally doing more
in rising-generation engagement across areas such as outside
professional experience, operating business involvement and education
requirements. . offices, where the greatest degree of global wealth is
concentrated, show slightly lower engagement in these specific areas.
In addition, 28% of families require younger members to gain
professional experience outside the family operating business or family
office, whereas 23% actively involve them in the family business. The
latter is more common outside the United States, where 68% own a
separate operating company, compared to 51% of families in the United
States. Given this, it makes sense that more families outside of the
United States use their businesses as a platform for family engagement
and learning.
28
SUCCESSION AND ENGAGEMENT
THREE-QUARTERS OF FAMILY OFFICES HAVE IMPLEMENTED ONE OR MORE RISING-GENERATION ENGAGEMENT STRATEGIES, THOUGH
SPECIFIC INITIATIVES VARY
Exhibit 12: Which of the following measures do you have in place or are considering to help prepare
the rising generation?
Invite
younger
family
members to
meet with
professional
advisors
26%
39%
Currently in place Considering for future
Encourage
philanthropic
endeavors
with the
larger family
and/or of
their own
particular
interest
35%
27%
Develop
family
wealth
education
plan for
younger
family
members
39%
23%
Invite
younger
family
members
to attend
family
meetings
32%
29%
Involve
younger
family
members in
non-voting
roles on
formal
family
governance
structures
35%
21%
Encourage
entrepreneurial
spirit by
providing
access to
capital for
startups
and/or direct
investments
29%
26%
Require
professional
experience
outside the
family
operating
business or
family office
26%
28%
Involve
younger
family
members in
operating
business
29%
23%
Require
younger
family
members
to meet
minimum
educational
standards
22%
27%
Shield
individuals
from the
extent of
family’s
wealth
20%
25%
Among families taking steps to engage younger members, one-
quarter (25%) report intentionally shielding children from the full
extent of the family’s wealth. While this approach may be effective
for younger children, it may also result in limited preparedness later
on, and in some cases, contribute to confusion or conflict.
Still, a meaningful portion of families have yet to implement active
strategies for engaging the rising generation. One in four (24%)
currently have no such initiatives in place, and 21% of these families
are not considering any in the future.
Lack of rising-generation preparedness is cited as a top risk to
continuity and effectiveness by 28% of family offices (page 34).
As shown in Exhibit 13, awareness of this risk is prompting many
offices and families to implement strategies specifically focused on
engaging and preparing the rising generation.
28%
of global family offices
CITE RISING GENERATION
PREPAREDNESS AS A TOP THREE
RISK TO CONTINUITY AND
EFFECTIVENESS
29
SUCCESSION AND ENGAGEMENT
FAMILY OFFICES THAT RANK UNPREPAREDNESS OF THE RISING GENERATION AS A TOP RISK TO CONTINUITY ARE MORE LIKELY TO TAKE
ENGAGEMENT ACTION
Exhibit 13: Which of the following measures do you have in place or are considering to help prepare
the rising generation?
Currently in place Considering for the future
Do not rank “unprepared rising generation” as a top five risk Rank “unprepared rising generation” as top five risk
Currently in place Considering for the future
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Invite to
meet with
professional
advisors
26%
32%
48%
27%
Encourage
philanthropic
endeavors
(with larger
family or on
their own)
26%
29%
29%
42%
Invite to
family
meetings
32%
22%
38%
31%
Require
professional
experience
outside
family
business/
family o—ce
24%
23%
33%
29%
Shield from
extent of
family’s
wealth
20%
23% 27%
21%
Develop
wealth
education
plan
33%
21%
26%
45%
Involve in
non-voting
roles on
formal
family
governance
structures
33%
16%
26%
39%
Provide
access to
capital for
startups/
direct
investments
26%
26% 26%
32%
Involve in
operating
business
28%
23% 24%
29%
Require
minimum
educational
standards
22%
21% 23%
33%
30
03 Spotlight on
operating businesses
The existence of a separate operating business informs how family offices govern, invest
and manage continuity
This year’s survey examined the relationship between family
offices and family-owned businesses. Privately held businesses
are an important source of wealth for many families who have
established family offices. Globally, nearly six in 10 (58%)
respondents report having a separate operating business, while
another 29% had one in the past but no longer do. Only 12% of
family offices serve families who have never owned an operating
business. Family offices may be embedded within an operating
company or function as a standalone entity alongside a family
business. We looked specifically at those families whose
operating businesses are separate from their family offices, and
we found that they share many characteristics and concerns
with those without them. Despite the many similarities,
business-owning families face additional considerations that
influence their decisions and priorities across investments,
governance and family office operations.
Investments
The operating company often represents a concentrated,
primary source of family wealth, yet less than half (48%) of
business owning families consider it when allocating the family
investment portfolio. This could pose risk to overall exposures
within sectors, geographies and even global trends. Not
accounting for the operating company when evaluating non-
related investments can make it difficult to accurately align risk
to long-term goals. This group overall reports, on average,
slightly higher positions in fixed income (% versus %)
and lower allocations to private investments (% versus
%). However, a more integrated approach could help better
calibrate other assets with performance expectations of the
business itself. It is true that some families intentionally design
a distinct separation between the operating company and
portfolio assets. In many of these cases, the family office has
purview only over financial assets, which can have implications
for AUS metrics. In other instances, the distinction arises from
challenges in data aggregation and risk management, an area
often cited by family offices where improvement is desired.
While there is no overwhelmingly correct approach, applying
overarching risk measures can be prudent for families
concerned about risks to long-term asset values and maintaining
a cohesive portfolio.
Family office integration
Forty-seven percent of family offices supporting families with
operating businesses list managing the business itself as a
strategic priority. Our survey focused on standalone family
offices as opposed to embedded family offices, whereby
employees of a privately held business provide administrative,
tax and/or personal support for the owners and their family
members. The majority of the standalone family offices we work
with are not responsible for the day-to-day management of the
family’s core operating businesses. While the family office may
oversee strategic direct stakes in privately held businesses as
part of the family’s portfolio, they typically do not manage the
family’s core businesses. Instead, the family office may offer
strategic support to family business shareholders.
Governance
For many families, the operating business serves as a core bond
that helps hold them together. This can be even more
heightened in periods of transition, making formal governance
measures especially important. Business-owning families are
more likely to have formal governance structures in place: 48%
of business owning families have established some governance
bodies versus 40% of non-business-owning families. In
particular, they are more likely to have established formal family
councils (64% versus 51%), rely on fiduciary boards of directors
(36% versus 27%), and have investment committees consisting
of both family members and non-family members (45% versus
35%). Business-owning families are also more likely to have
external advisors review their investment portfolios (31% versus
22%). Family constitutions/bylaws are more prevalent among
business-owning families than non-business-owning families
(66% versus 51%), and business owning families are also more
likely to host regular family meetings (46% versus 37%), and to
prioritize preservation of family values and legacy (59% versus
56%) as a top family office priority.
Strong governance frameworks provide the continuity that the
business alone may no longer guarantee. It gives rising
generations a clear framework for involvement, and offers a
stabilizing “north star” that keeps the family connected.
Business-owning families are more conscious of the risk that
family conflict and misalignment of family values pose to the
continuity of the family office: 41% of business-owning families
cite conflict and family misalignment as a top three risk as
opposed to 23% of families who do not have an operating
business. In fact, 21% of business-owning families identify
family conflict/misalignment as the number one risk to family
office continuity.
COMPARED TO NON-BUSINESS OWNING FAMILIES, FAMILIES
WITH OPERATING BUSINESSES ARE MORE LIKELY TO:
1 Have formal governance structures
2 Engage with external advisors
3 Prioritize family values and legacy preservation
31
In families with operating companies,
governance does more than protect the
business—it’s essential in protecting the
family franchise.
A clear decision-making framework
regarding distributions, leverage levels,
compensation and roles, coupled with
investment performance metrics, helps
families navigate transitions and keeps
the operating company aligned with
long-term priorities.
Steven Faulkner
Head of Private Business Advisory
. Morgan Private Bank
04 Strategic and
operational
foundations
32
AT-A-GLANCE FINDINGS
• Top strategic priorities center on managing the family balance sheet
and tax liabilities, followed by administrative services, and more than
half identify governance as a key goal
• Annual operating costs vary widely: 40% spend less than $1 million,
29% spend $1 million to $ million, 20% spend $3 million to $
million, and 11% exceed $ million, with offices overseeing over
$1 billion in AUS spending an average of $ million
• Operating costs tend to rise with AUS, but the share of external
expenses generally stays consistent, averaging 25%–28%
• As family offices mature, they often increasingly integrate external
professional talent, expanding beyond family-led staffing models as
complexity grows
• 80% leverage portfolio outsourcing, with more than one-third wholly
or partially outsourcing more than half of their portfolios
33
STRATEGIC AND OPERATIONAL FOUNDATIONS
In our work with family offices around the world, we
consistently see how each office reflects the unique
needs, goals and characteristics of the family it serves.
While scale, scope and purpose can vary widely, certain
structural and operational patterns often emerge that
help define the broader landscape.
These patterns provide insights into how offices prioritize objectives,
navigate risks, allocate resources and make decisions, all while
balancing the demands of operating businesses, evolving family
expectations and changing investment environments. Understanding
these patterns helps illuminate the ways in which offices can support
both immediate operational needs and long-term family objectives.
At the same time, families identified areas where they need the
most support to strengthen their operations to serve both the
families and their enterprises over time. From cost management
and staffing decisions to strategic priorities and succession planning,
offices face the ongoing challenge of aligning operational structures
with the family’s long-term goals. Recognizing these dynamics can
be essential for families seeking to enhance governance, optimize
operations and ensure continuity, as well as for third-party advisors
and service providers aiming to provide meaningful, actionable
guidance that can help families navigate complexity and build
lasting resilience.
Cost
management
Staffing
decisions
Service model
STRATEGIC &
OPERATIONAL
PLANNING
Risk
management
Succession
planning
Technology
& cyber
STRATEGIC AND OPERATIONAL FOUNDATIONS
34
Top risks to family office continuity and effectiveness
Family offices were asked to identify the top risks facing
their operations (see Exhibit 14). Globally, financial market
disruption emerges as the most pressing concern (46%),
followed by regulatory and tax compliance complexities (38%).
Family conflict and misalignment, lack of succession planning
and key individual or service provider risk round out the top
five risks, each registering at 33%.
Regional and structural differences all shape these
perceptions. International offices are more concerned with
family conflicts (42%), while . family offices are concerned
with overreliance on key providers (38%). Smaller offices
globally (AUS under $250 million) are more likely to be
concerned about potential market disruptions (55%), while
multigenerational offices tend to also be worried about the
challenges of maintaining family cohesion in areas such as
the rising generation (30%), conflict (36%) and succession
plans (35%). These patterns underscore that while some
risks are universal, the specific context of the family—its size,
generational span and geography—can influence which threats
are seen as most immediate.
46%
of global family offices
IDENTIFY FINANCIAL MARKET
DISRUPTION IMPACTING THEIR
LONG-TERM GOALS AS THE TOP RISK
SHORT-TERM FINANCIAL DISRUPTIONS ARE A TOP RISK TO THE CONTINUITY OF FAMILY OFFICES
Exhibit 14: What are the top three risks (ranked) to the continuity and effectiveness of your family office?
Global United States International
1 Financial market disruption
impacting long-term goals
46% Financial market disruption
impacting long-term goals
44% Financial market disruption
impacting long-term goals
48%
2 Regulatory/tax/compliance
complexity
38% Over-reliance on provider(s)
or individual(s)
38% Family conflict or misalignment
on strategy/values
42%
3 Over reliance on provider(s)
or individual(s)
33% Regulatory/tax/compliance
complexity
37% Lack of succession plan for
decision makers
40%
4
Family conflict or misalignment
on strategy/values
33% Unpreparedness of rising
generation
28% Regulatory/tax/compliance
complexity
39%
5
Lack of succession plan for
decision makers
33% Lack of succession plan for
decision makers
28% Unpreparedness of rising
generation
27%
This chart illustrates the five most commonly cited risks that were ranked as a top three risk.
Managing the family balance sheet and tax liabilities are top
strategic priorities
Exhibit 15 highlights the top five cited strategic priorities of family
offices, with primary emphasis on the growth and management of
the family balance sheet, and actively managing tax liabilities, as well
as other professional and administrative services. This underscores a
common path. Most offices initially focus on these types of key areas
and, as they begin serving multiple generations and branches, they
often recognize that governance and rising-generation preparedness
become increasingly instrumental to long-term wealth preservation.
More than half (57%) identify governance and legacy as key areas of
focus, reflecting this growing role.
The number of priorities cited also tends to expand with family
size and complexity, with offices serving three or more generations
generally reporting a broader set of initiatives than those supporting
a single generation. One takeaway for emerging offices: Get ahead
of priorities that are likely to shift in the immediate future by clearly
defining the strategic purpose of the family office beyond the
management of financial wealth, and identifying stakeholders and
setting measures of success.
INVESTMENTS AND PROFESSIONAL/ADMINISTRATIVE SERVICES LEAD STRATEGIC PRIORITIES,
WITH MANY OFFICES ALSO SUPPORTING FAMILY GOVERNANCE
Exhibit 15: What are the primary strategic priorities of your family office?
STRATEGIC AND OPERATIONAL FOUNDATIONS
35
1
89%
Managing liquid
financial assets of
the family
2
76%
Structuring and
coordinating
estate/tax
planning
3
72%
Sourcing and
managing direct
investments
4
71%
Financial
administration and
accounting (bill pay,
bookkeeping, financial
reporting, etc.)
5
57%
Preserving
family values,
governance
and legacy
Many are making meaningful investments
in annual operating costs
Family office operating costs can vary widely, but it is clear that many
families are making sizable investments to ensure their offices can
deliver expertise, continuity and support across generations. The
average annual cost to run a family office is just over $3 million,
of which an average 26% is attributed to external costs, such as
investment management fees, custody and trading fees, legal and
compliance costs, bill pay, etc. This year’s figure is modestly lower
than 2024 data, reflecting changes in the participation mix, scale
across the regions and cost categories included in the survey.
However, family offices with more than $1 billion in AUS are spending
an average of $ million in annual costs, roughly double the
average for offices with AUS between $500 million and $1 billion
(see Exhibit 16).
Of course, averages do not tell the whole story. Looking at specific
ranges, 40% of offices have under $1 million in operating costs,
29% spend $1 million to $ million, 20% fall between $3 million
and $ million, and 11% report costs of $7 million or more. As
AUS grows, generally so too do absolute costs of running the office.
However, while total costs broadly scale with size, the relative share
of external costs generally does not. Further, the common rule of
thumb that costs should be between % and 1% of AUS can be
overly simplistic, as it does not take into account the nature of the
family office, the complexity of the assets to be managed and the
talent that the family office has hired from within.
WHILE HIGHER AUS CORRELATES WITH INCREASED OPERATING COSTS, THE SHARE ALLOCATED TO
EXTERNAL EXPENSES STAYS WITHIN A MODEST RANGE
Exhibit 16: Annual operating cost to run the global family office
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
$875,000 $1,708,333 $3,281,250 $6,642,663
Less than $1MM USD
$250MM or lessAUS: $251MM–$500MM $501MM–$999MM $1B+
$1MM–$ USD $3MM–$ USD $7MM+ USD
3%
22%
41%
34%
77%
17%
5%
1%
42% 42%
14%
2%
13%
50%
29%
8%
Annual costs
Average
STRATEGIC AND OPERATIONAL FOUNDATIONS
36
External costs portion of budget $250MM or less $251MM—$500MM $501MM—$999MM $1B+
<10% 29% 21% 13% 23%
10%–% 19% 18% 25% 22%
20%–% 13% 15% 17% 13%
30%–% 11% 15% 15% 14%
40%–% 8% 6% 15% 12%
50%+ 20% 24% 13% 16%
Average 25 28 28 26
37
STRATEGIC AND OPERATIONAL FOUNDATIONS
Outsourcing
Family offices can gain leverage and scale by outsourcing certain
functions, either wholly or in part, to specialty providers. It can be
more efficient to delegate on technical topics, rather than build out
in-house capabilities. This is evident in the services that are most
frequently wholly outsourced:
• Legal services (52%)
• Trading and market execution (45%)
• Cybersecurity (38%)
In contrast, administrative services are most likely to be wholly
insourced:
• Family office staffing and compensation (72%)
• Financial administration (64%)
• Balance sheet aggregation and reporting (54%)
Because of the complex nature of their portfolios and the desire for
custom reporting views, many family offices prefer to keep these
functions internal, and many are now or increasingly leveraging
technology to provide lift. At . Morgan, we’re seeing rising demand
for aggregated reporting platforms that offer clients enhanced
transparency along with a holistic view of assets across multiple
sources and institutions. These platforms enable real-time digital
reporting and analysis of both public and private assets, helping
families to move beyond manual, spreadsheet-driven processes and
freeing staff to focus on higher-value priorities.
Investment outsourcing
On the investment side, 80% of global family offices report
incorporating some degree of portfolio outsourcing, such as usage
of outsourced CIOs, due diligence and manager selection, trading
functions and discretionary oversight of specific investment sleeves
(Exhibit 17). This is consistent with what we see in practice, where
most family offices insource in areas where they believe they have
unique expertise or investment edge, and outsource to achieve
efficiency and scale.
In fact, more than one-third of offices wholly or partially outsource
more than half of their portfolios, a relatively consistent trend
across AUS levels (Exhibit 18). This includes family offices with
$1 billion or more, where 33% outsource more than 50% of their
portfolios, underscoring the value and efficiencies family offices
of all sizes derive from their outsource providers.
When family offices are evaluating external advisors and wealth
managers, family offices most commonly cite the following reasons
as the most important: access to high-quality investment managers
or products, strong investment track record, portfolio construction
expertise, access to private investment deal flows, access to a
broader suite of financial and family office services, and experience
with family offices and values.
MOST FAMILY OFFICES ARE LEVERAGING EXTERNAL EXPERTISE IN MANAGING THEIR PORTFOLIOS
Exhibit 17: What percentage of your total investment portfolio is outsourced to or managed by external/third-party investment advisors or
wealth managers?
0%
%–25%
%–50%
%–75%
%–%
100%
Global
20%
33%
34% outsourcing
50% or more
14%
17%
12%
5%
18%
33%
13%
16%
15%
5%
United States
36% outsourcing
50% or more
24%
33%
15%
17%
7%
4%
International
28% outsourcing
50% or more
38
STRATEGIC AND OPERATIONAL FOUNDATIONS
ONE-THIRD OF FAMILY OFFICES WITH $1 BILLION OR MORE AUS ARE OUTSOURCING AT LEAST HALF OF THEIR PORTFOLIOS
Exhibit 18: Share of portfolio outsourced by AUS, globally
% of family offices by outsourcing level
$250MM or less $251MM–$500MM $501MM–$999MM $1B+
0%
19% 18%
27%
20%
%–25%
30%
35%
33%
36%
%–50%
19%
11% 10% 12%
%–75%
13%
23%
19%
15%
%–%
13% 11% 12% 11%
100%
7%
3%
7%
By asset class
Exhibit 19 illustrates which asset classes offices are wholly or partially
outsourcing. Four of the top five globally are . public equities
(68%), fixed income (62%), international public equities (56%) and
cash/liquidity management (56%). This reflects a common theme
we hear in conversations with family offices of delegating more
traditional assets to trusted external providers, ensuring dedicated
oversight and expertise, while allowing the family and family office
to focus on other strategic priorities. Private equity (66%) also
ranks near the top, likely reflecting the complexity of building
in-house platforms capable of handling comprehensive sourcing,
due diligence, manager selection and ongoing portfolio
management.
Criteria for third-party provider selection
In choosing external advisors, trust, values and alignment are critical
considerations for the vast majority of family offices (78%), reflecting
the same emphasis on “fit” that offices apply when hiring internal
staff. Track record is naturally a strong factor, cited by 51%, while an
advisor’s reputation and experience with similarly situated clients
(40%), and alignment with the family’s long-term goals and values
(40%) are also highly important. Cost remains a consideration, but
it is not a primary driver. Only 28% of respondents cite reducing
internal costs or resource burden as a main factor. Experience and
expertise for a specific task, along with the family’s needs for privacy
and control, often take precedence.
SIX IN 10 OFFICES GLOBALLY LEVERAGE OUTSOURCING IN . PUBLIC EQUITIES, PRIVATE EQUITY AND FIXED INCOME
Exhibit 19: Asset classes leveraging outsourced expertise
68%
66%
62%
56%
56%
52%
50%
48%
47%
44%
2%
. public equities
Private equity
Fixed income
International public equities
Cash/liquidity management
Direct investments
Private credit
Real assets
Multi-asset portfolio
Hedge funds
Other
39
STRATEGIC AND OPERATIONAL FOUNDATIONS
Leadership and staffing tend to scale up over time
Across all family offices, CEO and CIO are the most prevalent
executive roles, followed by CFO (see Exhibit 20), yet even these
positions are far from universal. Only about four in 10 family offices
report having a CEO (38%–42%, depending on age of the family
office), roughly one-quarter to one-third have a CIO (24%–31%), and
between one-fifth and one-third employ a CFO (20%–32%).
As family offices expand in scale and sophistication, they increasingly
turn to seasoned, non-family professionals to fill these leadership
positions. Family offices established 20 or more years ago, or with 11
or more employees are the most likely to employ professional, non-
family executives, reflecting the operational complexity that develops
over time.
Still, many family offices begin quite differently. Among smaller
offices with five or fewer employees, more than one-quarter (28%)
report non-compensated family members working in the office. This
early-stage pattern reflects how many family offices typically start,
with trusted family members or close associates taking on multiple
roles before gradually transitioning to professional management.
Even at this early stage, however, around half (52%) of smaller offices
report non-family executives in leadership roles, a share that steadily
rises to 79% for offices with 11 or more employees, reflecting the
value that professional expertise can bring.
Of note, compensation patterns for family members working in their
family offices vary by whether the family also owns an operating
business. The percentage of non-compensated family members in
family offices without an operating company (25%) is double that of
those with one (11%), suggesting that business-owning families often
have more formal business governance and compensation structures
already in place.
CEO AND CIO ARE THE MOST PREDOMINANT ROLES IN GLOBAL FAMILY OFFICES, FOLLOWED BY CFO
Exhibit 20: Which executive roles does the family office fill?
Establishment of the family offi ce # of employees within the family offi ce
Last 5 years 6–10 years ago 11–20 years ago 20+ years ago 1–5 6–10 11+
Executive roles 205 185 207 195 310 209 273
Chief Executive Offi cer/President 38% 40% 42% 36% 42% 41% 35%
Chief Financial Offi cer 25% 20% 29% 32% 26% 28% 25%
Chief Investment Offi cer 31% 24% 31% 30% 34% 24% 28%
Chief Operating Offi cer 20% 15% 22% 23% 23% 20% 16%
Chief Legal Offi cer/General Counsel 8% 8% 13% 12% 7% 11% 14%
Other (please specify) 7% 16% 7% 11% 10% 11% 10%
Executive roles’ relationship to the
family offi ce
Family member: non-compensated 19% 22% 15% 11% 28% 12% 6%
Family member: compensated 25% 17% 15% 16% 20% 22% 14%
Non-family member 56% 62% 70% 73% 52% 66% 79%
4040
STRATEGIC AND OPERATIONAL FOUNDATIONS
Greatest service needs: Cybersecurity, wealth education,
governance/succession planning and private investments
Family offices point to several areas where they see their greatest
needs and opportunities for growth. Broadly speaking, roughly
half or more or more indicate a greater need in the categories
of legacy, succession and philanthropy; administration, reporting
and operations; and risk management, while 36% cite a need to
strengthen financial asset management services (see Exhibit 21).
In terms of specific services for which family offices report the
greatest degree of need, cybersecurity once again tops the list
at 32%, which is understandable, given the continued increase
in cybercrime, and the strong technology controls and secure
operational processes required to protect family office data,
finances and operations.
The need for cyber services is followed closely by family wealth
education at 31%. More than one in four (27%) flag family
governance and succession planning, and over one in five (22%)
report they could use support with private investments.
Family offices formed in the last 10 years are more likely to indicate
areas of need in administration, reporting and operations (54%),
while those formed over 10 years ago tend to indicate greater
need around legacy and succession (58%). Support for legacy and
succession is also particularly pronounced among offices serving two
or more generations (56%).
TOP SERVICE NEEDS, GLOBALLY, ARE IN CYBERSECURITY, FAMILY WEALTH EDUCATION,
GOVERNANCE/SUCCESSION PLANNING AND PRIVATE INVESTMENTS SUPPORT
Exhibit 21: Which of the following services do you feel you have the most needs or gaps in your services?
Legacy, succession
& philanthropy
54%
Adminstration, reporting
& operations
49%
Risk management
49%
Financial assets
management
36%
Top four needs or gaps within each category
Family wealth
education
31%
Family governance &
succession planning 27%
Estate planning 18%
Matrimonial &
family planning 10%
Balance sheet aggregation
& reporting services
19%
Accounting & taxes 17%
Concierge &
lifestyle services 12%
Family office staffing &
compensation 9%
Cybersecurity
services
32%
Legal services 16%
Insurance
management 14%
Private investments 22%
Trading & markets
execution 11%
Investment banking
services 10%
Investment
management 10%
41
Cybersecurity remains a top focus for
family offices. The evolving landscape,
shaped by global geopolitical tensions
and rapid advances in artificial
intelligence, has led to increasingly
targeted and sophisticated cyber
threats against businesses, individuals
and families.
Vigilance and proactive defenses are
critical to safeguarding assets and family
office operations.
Ileana van der Linde
Head of Cyber Advisory
. Morgan Private Bank
Concluding
remarks
We hope this report provides meaningful insights
into the priorities, challenges and opportunities
shaping family offices today. This year’s findings
reflect a community that is not only sophisticated
and resilient, but also deeply committed to
stewarding capital and legacy across generations.
We look forward to continuing to support these
clients with insightful perspectives and practical
guidance in the years ahead.
As the family office landscape continues to evolve,
we remain dedicated to supporting the long-term
success of the families and enterprises we serve,
providing the full breadth of expertise, resources
and partnership from across the firm. For feedback,
questions or further discussion on any of the topics
presented in this report, please contact your
. Morgan team, which can provide guidance
tailored to your unique priorities.
42
43
Appendix
EXHIBIT 22: HOW MUCH OF YOUR PORTFOLIO ARE YOU INVESTING IN THE FOLLOWING ASSET CLASSES AND UNDERLYING SEGMENTS?
Global
ALLOCATION SIZE 0% 1–9% 10–29% 30%+
PUBLIC EQUITIES
. large-cap equities 9% 17% 41% 33%
. mid-/small-cap
equities 40% 40% 18% 3%
INTERNATIONAL DEVELOPED MARKET EQUITIES
Europe & . 41% 41% 16% 2%
Japan 68% 31% 0% 0%
Other 83% 15% 2% 1%
EMERGING MARKET EQUITIES
Latin America 80% 17% 2% 1%
Asia (excluding China) 72% 26% 1% 0%
China 74% 24% 2% 1%
Middle East/Africa 95% 4% 0% 0%
Other 93% 7% 0% 0%
HEDGE FUNDS
Diversifi ed/fund-of-fund 70% 24% 5% 1%
Long/short 74% 21% 4% 1%
Global macro 84% 15% 1% 0%
Relative value/credit 87% 11% 2% 0%
Event-driven 93% 7% 0% 0%
PRIVATE INVESTMENTS
Private equity 22% 36% 34% 8%
Control-oriented
private investments 69% 13% 11% 8%
Secondaries 76% 22% 1% 0%
Growth equity &
venture capital
57% 31% 11% 1%
Private credit 58% 33% 9% 0%
Real estate 40% 32% 22% 6%
Infrastructure,
transportation &
other real assets
79% 19% 2% 0%
COMMODITIES
Gold 72% 26% 2% 0%
Other 95% 4% 2% 0%
FIXED INCOME
Investment grade
corporate bonds 51% 22% 20% 7%
. Treasury bonds 58% 28% 12% 2%
. government
bonds 88% 9% 3% 0%
. municipal bonds 77% 16% 6% 2%
High yield bonds 78% 18% 3% 0%
Preferred equity/hybrids 88% 10% 2% 0%
CASH
Cash 23% 46% 26% 5%
CRYPTO OR DIGITAL ASSETS
Bitcoin 91% 9% 0% 0%
Other 97% 2% 1% 0%
ART/COLLECTIBLES
Art/collectibles 85% 12% 3% 1%
Other 92% 5% 2% 1%
United States
ALLOCATION SIZE 0% 1–9% 10–29% 30%+
PUBLIC EQUITIES
. large-cap equities 7% 14% 39% 40%
. mid-/small-cap
equities 29% 44% 22% 5%
INTERNATIONAL DEVELOPED MARKET EQUITIES
Europe & . 48% 39% 13% 0%
Japan 75% 25% 0% 0%
Other 81% 16% 2% 1%
EMERGING MARKET EQUITIES
Latin America 84% 15% 1% 0%
Asia (excluding China) 75% 25% 0% 0%
China 79% 20% 1% 0%
Middle East/Africa 94% 5% 1% 0%
Other 93% 7% 0% 0%
HEDGE FUNDS
Diversifi ed/fund-of-fund 72% 21% 6% 1%
Long/short 70% 25% 4% 1%
Global macro 83% 16% 1% 0%
Relative value/credit 88% 10% 2% 0%
Event-driven 94% 6% 0% 0%
PRIVATE INVESTMENTS
Private equity 23% 32% 35% 10%
Control-oriented
private investments 63% 15% 12% 10%
Secondaries 74% 24% 1% 0%
Growth equity &
venture capital
52% 33% 13% 2%
Private credit 58% 32% 10% 0%
Real estate 31% 36% 26% 7%
Infrastructure,
transportation &
other real assets
83% 16% 2% 0%
COMMODITIES
Gold 74% 25% 1% 0%
Other 93% 5% 2% 0%
FIXED INCOME
Investment grade
corporate bonds 65% 25% 9% 0%
. Treasury bonds 58% 30% 11% 1%
. government
bonds 94% 5% 1% 0%
. municipal bonds 63% 24% 10% 3%
High yield bonds 83% 15% 2% 1%
Preferred equity/hybrids 87% 11% 2% 1%
CASH
Cash 24% 46% 26% 4%
CRYPTO OR DIGITAL ASSETS
Bitcoin 88% 12% 0% 0%
Other 97% 3% 1% 0%
ART/COLLECTIBLES
Art/collectibles 80% 16% 4% 1%
Other 91% 7% 2% 0%
International
ALLOCATION SIZE 0% 1–9% 10–29% 30%+
PUBLIC EQUITIES
. large-cap equities 12% 20% 45% 24%
. mid-/small-cap
equities 54% 35% 11% 0%
INTERNATIONAL DEVELOPED MARKET EQUITIES
Europe & . 32% 43% 21% 4%
Japan 60% 40% 0% 0%
Other 85% 13% 1% 1%
EMERGING MARKET EQUITIES
Latin America 75% 19% 4% 2%
Asia (excluding China) 68% 29% 2% 1%
China 68% 29% 3% 1%
Middle East/Africa 97% 3% 0% 0%
Other 93% 7% 0% 0%
HEDGE FUNDS
Diversifi ed/fund-of-fund 68% 28% 4% 0%
Long/short 79% 16% 4% 1%
Global macro 85% 14% 1% 0%
Relative value/credit 86% 13% 1% 0%
Event-driven 91% 9% 0% 0%
PRIVATE INVESTMENTS
Private equity 21% 42% 32% 4%
Control-oriented
private investments 77% 10% 8% 5%
Secondaries 79% 19% 1% 0%
Growth equity &
venture capital
65% 28% 7% 0%
Private credit 57% 35% 7% 0%
Real estate 54% 27% 15% 4%
Infrastructure,
transportation &
other real assets
74% 24% 2% 0%
COMMODITIES
Gold 70% 26% 3% 1%
Other 97% 1% 1% 0%
FIXED INCOME
Investment grade
corporate bonds 31% 18% 35% 16%
. Treasury bonds 58% 26% 14% 2%
. government
bonds 79% 14% 7% 0%
. municipal bonds 97% 3% 0% 0%
High yield bonds 71% 24% 6% 0%
Preferred equity/hybrids 90% 8% 2% 0%
CASH
Cash 22% 46% 26% 4%
CRYPTO OR DIGITAL ASSETS
Bitcoin 94% 5% 1% 0%
Other 98% 2% 0% 0%
ART/COLLECTIBLES
Art/collectibles 92% 6% 1% 1%
Other 93% 4% 2% 1%
ACKNOWLEDGMENTS
AUTHORS
Christopher McCree
Head of Family Office
Services and Strategy
Elisa Shevlin Rizzo
Head of Family Office Advisory
Jacob Manoukian
. Head of Investment Strategy
Jamie Lavin Buzzard
Regional Head of
Investments and Advice,
. South Region
Natalia Murphy
Wealth Advisor and Co-Lead of
Family Office Advisory, International
Private Bank
KEY CONTRIBUTORS
BJ Goergen Maloney
Global Head of
. Morgan Private Advisory
Christophe Aba
Deputy Head of Investments &
Advice, International Private Bank
Christopher Fletcher
Global Head of Institutional
Investment Solutions
Claudia Caffuzzi
Vice Chairman and Head of
Wealth Advisory, International
Private Bank
Macy Miller
Family Office Advisory
. Morgan Private Advisory
Sara Kutscher
Global Family Office Practice
Simone Solimeo
Global Family Office Practice
and 23 Wall
44
For press inquiries, contact: @
mailto:@
JPMAM Long-Term Capital Market Assumptions
Given the complex risk-reward trade-offs involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting
strategic allocations. Please note that all information shown is based on qualitative analysis. Exclusive reliance on the above is not advised. This
information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. Note that
these asset class and strategy assumptions are passive only—they do not consider the impact of active management. References to future returns
are not promises or even estimates of actual returns a client portfolio may achieve. Assumptions, opinions and estimates are provided for illustrative
purposes only. They should not be relied upon as recommendations to buy or sell securities. Forecasts of financial market trends that are based on
current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable, but
do not warrant its accuracy or completeness. This material has been prepared for informational purposes only and is not intended to provide, and
should not be relied on for, accounting, legal or tax advice. The outputs of the assumptions are provided for illustration/discussion purposes only and
are subject to significant limitations.
“Expected” or “alpha” return estimates are subject to uncertainty and error. For example, changes in the historical data from which it is estimated
will result in different implications for asset class returns. Expected returns for each asset class are conditional on an economic scenario; actual
returns in the event the scenario comes to pass could be higher or lower, as they have been in the past, so an investor should not expect to achieve
returns similar to the outputs shown herein. References to future returns for either asset allocation strategies or asset classes are not promises of
actual returns a client portfolio may achieve. Because of the inherent limitations of all models, potential investors should not rely exclusively on the
model when making a decision. The model cannot account for the impact that economic, market, and other factors may have on the implementation
and ongoing management of an actual investment portfolio. Unlike actual portfolio outcomes, the model outcomes do not reflect actual trading,
liquidity constraints, fees, expenses, taxes and other factors that could impact the future returns. The model assumptions are passive only—they do
not consider the impact of active management. A manager’s ability to achieve similar outcomes is subject to risk factors over which the manager may
have no or limited control.
The views contained herein are not to be taken as advice or a recommendation to buy or sell any investment in any jurisdiction, nor is it a
commitment from . Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any forecasts,
figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market
conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production.
This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the
merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit
and accounting implications and determine, together with their own financial professional, if any investment mentioned herein is believed to be
appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment.
It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market
conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yield are not a reliable
indicator of current and future results.
IMPORTANT INFORMATION
This material is for informational purposes only, and may inform you of certain products and services offered by private banking businesses, part
of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in
accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all
locations. If you are a person with a disability and need additional support accessing this material, please contact your . Morgan team or email us at
@ for assistance. Please read all Important Information.
GENERAL RISKS & CONSIDERATIONS
Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may
get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not
guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment
decision. You are urged to consider carefully whether the services, products, asset classes (., equities, fixed income, alternative investments,
commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated
with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion
of your goals/situation, contact your . Morgan team.
NON-RELIANCE
Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or
completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No
representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are
provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment
based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in
the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas
of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected
results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-
looking statements should not be considered as guarantees or predictions of future events.
45
mailto:@
Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing
in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by
. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. . Morgan and its affiliates
and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any
financial transactions.
LEGAL ENTITY, BRAND & REGULATORY INFORMATION
In the United States, bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank,
. Member FDIC.
JPMorgan Chase Bank, . and its affiliates (collectively “JPMCB”) offer investment products, which may include bank-managed investment accounts
and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered
through . Morgan Securities LLC (“JPMS”), a member of FINRA and SIPC. Insurance products are made available through Chase Insurance
Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated
companies under the common control of JPM. Products not available in all states.
In Germany, this material is issued by . Morgan SE, with its registered office at Taunustor 1 (TaunusTurm), 60310 Frankfurt am Main, Germany,
authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche
Bundesbank) and the European Central Bank (ECB). In Luxembourg, this material is issued by . Morgan SE—Luxembourg Branch, with
registered office at European Bank and Business Centre, 6 route de Treves, L-2633, Senningerberg, Luxembourg, authorized by the Bundesanstalt für
Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central
Bank (ECB); . Morgan SE—Luxembourg Branch is also supervised by the Commission de Surveillance du Secteur Financier (CSSF); registered under
Luxembourg B255938. In the United Kingdom, this material is issued by . Morgan SE—London Branch, registered office at 25 Bank Street,
Canary Wharf, London E14 5JP, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the
German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); . Morgan SE—London Branch is also supervised by the Financial
Conduct Authority and Prudential Regulation Authority. In Spain, this material is distributed by . Morgan SE, Sucursal en España, with registered
office at Paseo de la Castellana, 31, 28046 Madrid, Spain, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly
supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); . Morgan SE, Sucursal en España
is also supervised by the Spanish Securities Market Commission (CNMV); registered with Bank of Spain as a branch of . Morgan SE under code 1567.
In Italy, this material is distributed by . Morgan SE—Milan Branch, with its registered office at Via Cordusio, , Milan 20123, Italy, authorized by
the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and
the European Central Bank (ECB); . Morgan SE—Milan Branch is also supervised by Bank of Italy and the Commissione Nazionale per le Società e la
Borsa (CONSOB); registered with Bank of Italy as a branch of . Morgan SE under code 8076; Milan Chamber of Commerce Registered Number: REA
MI 2536325. In the Netherlands, this material is distributed by . Morgan SE—Amsterdam Branch, w
