[Family Office] Why Digital Infrastructure Is Now Essential -

According to a publication from The Economy Markets Editorial Board, family offices are under growing pressure to modernize data and investment infrastructure as their capital and direct investment activity expand. Deloitte estimates family offices globally manage roughly $3.1 trillion in assets and serve families holding about $5.5 trillion in wealth, while Cerulli Associates estimates $124 trillion will change hands in the United States through 2048, including transfers to heirs and charities. Size alone, however, does not ensure readiness. Citi Wealth reported that seven in ten family offices were engaged in direct investments in 2025, while BNY Wealth found 44% of U.S. family offices cited understaffing as a key challenge for new direct investments.

The article argues that many family offices still rely on fragmented systems, legacy software and spreadsheets, which delay reporting to family members and constrain scenario analysis. Creating a single source of truth has therefore become part of timely investment and operational decision-making. The Bank of America Family Office Study (2025) found nine in ten family offices believe AI could enhance returns, with half having already tried it. Deloitte data cited in the article shows private equity allocations rising from 22% of the average family office portfolio in 2021 to 30% in 2023, while public equity fell from 34% to 25%.

The article contends that private assets require more intensive sourcing, due diligence, monitoring and valuation work than listed securities, increasing the demands on investment infrastructure. Deloitte estimates technology adoption can take eight to twelve weeks, with implementation extending three to six months, requiring staff training and coordination across multiple providers. The article emphasizes that a trusted internal sponsor, such as a CFO or CIO, should hold clear authority over implementation.

Outsourcing is increasingly used to address capability gaps. Citi's 2025 research found growing use of external suppliers while major decisions remained in-house. BlackRock's 2025 Global Family Office Survey found 22% of family offices had used or would consider an outsourced chief investment officer, with respondents reporting gaps in reporting, deal sourcing and private-market analytics. The article concludes that technology is becoming core operating infrastructure, though software alone does not solve weak governance, poor data or staffing constraints.