Key Takeaways
- • Two-thirds of 333 family offices surveyed by JP Morgan Private Bank, with an average net worth of $1.6 billion, named geopolitics as the leading risk facing family offices in 2026, according to the bank's 2026 Global Family Office Report.
- • 86 per cent of surveyed family offices said they lacked a clear succession plan for key decision-makers, and legacy, succession and family wealth education were identified as the areas with the most needs or gaps.
- • Private equity, which makes up nearly 10 per cent of global family office portfolios, is facing investor scrutiny after a slowdown in distributions and extended lock-up periods, though 2.5 times as many families are increasing private market allocations as are cutting them.
- • The average annual operating cost for a family office is $3 million, rising to $6.6 million for offices with more than $1 billion in assets, as competition for talent drives up costs.
- • Family offices are largely avoiding gold and crypto, with 72 per cent holding no gold exposure and 89 per cent holding no cryptocurrency exposure, while two-thirds intend to prioritise artificial intelligence investments.
Summary
Geopolitics, generational readiness, talent competition and private equity performance dominate the concerns of family offices heading into 2026, according to JP Morgan Private Bank's 2026 Global Family Office Report. The survey of 333 family offices, with an average net worth of $1.6 billion, found that two-thirds cited geopolitics as the leading risk. US-based offices account for 59 per cent of the sample, with 14 per cent in Europe, the Middle East and Africa, 11 per cent in Asia-Pacific and 16 per cent in Latin America. JP Morgan said all surveyed offices are its clients.
Succession and family governance also feature prominently. Legacy, succession and family wealth education were identified as the areas with the most needs or gaps. Families owning businesses cited internal conflict as a principal risk to stability, and 86 per cent of surveyed offices said they lacked a clear succession plan for key decision-makers. David Wells, president of Greycourt & Co, said the top concern of its clients is whether the rising generation is ready for what is being asked of them.
Private equity is facing more skepticism. Nearly 10 per cent of global family office portfolios are allocated to private equity funds, but a slowdown in distributions and extended lock-up periods are prompting clients to question the asset class, according to Wells. Matthew Fleissig, CEO of Pathstone, said clients were concerned that PE funds have underperformed over the past three years, though he noted that historic five-year and 10-year returns have exceeded the S&P 500. The report found that 2.5 times as many families are increasing private market allocations as are cutting them.
Alternative allocations remain significant. Family offices that view inflation as a primary risk are allocating nearly 60 per cent of their portfolios to alternatives, focusing on hedge funds and real estate. Over half of offices have no exposure to growth equity, venture capital or infrastructure, though two-thirds intend to prioritise artificial intelligence. Natacha Minniti, global co-head of JP Morgan's family office practice, described a clear risk-on attitude, while Christopher Aba, head of investment and advice at JP Morgan Private Bank, urged focus on private market exposure and AI supply-chain enablers. Gold and crypto have limited appeal, with 31 per cent of families keeping 10 per cent or more of holdings in cash.
Operating costs are rising as talent becomes harder to secure. The report said competition for talent and specialised skills is driving up costs and prompting a shift toward hiring non-family professionals. The average annual operating cost is $3 million, rising to $6.6 million for offices with more than $1 billion in assets, and about 11 per cent of offices spend more than $7 million. Renewed state interest in wealth taxes and increased client mobility are also drawing attention, though family offices remain broadly optimistic about the future.
Succession and family governance also feature prominently. Legacy, succession and family wealth education were identified as the areas with the most needs or gaps. Families owning businesses cited internal conflict as a principal risk to stability, and 86 per cent of surveyed offices said they lacked a clear succession plan for key decision-makers. David Wells, president of Greycourt & Co, said the top concern of its clients is whether the rising generation is ready for what is being asked of them.
Private equity is facing more skepticism. Nearly 10 per cent of global family office portfolios are allocated to private equity funds, but a slowdown in distributions and extended lock-up periods are prompting clients to question the asset class, according to Wells. Matthew Fleissig, CEO of Pathstone, said clients were concerned that PE funds have underperformed over the past three years, though he noted that historic five-year and 10-year returns have exceeded the S&P 500. The report found that 2.5 times as many families are increasing private market allocations as are cutting them.
Alternative allocations remain significant. Family offices that view inflation as a primary risk are allocating nearly 60 per cent of their portfolios to alternatives, focusing on hedge funds and real estate. Over half of offices have no exposure to growth equity, venture capital or infrastructure, though two-thirds intend to prioritise artificial intelligence. Natacha Minniti, global co-head of JP Morgan's family office practice, described a clear risk-on attitude, while Christopher Aba, head of investment and advice at JP Morgan Private Bank, urged focus on private market exposure and AI supply-chain enablers. Gold and crypto have limited appeal, with 31 per cent of families keeping 10 per cent or more of holdings in cash.
Operating costs are rising as talent becomes harder to secure. The report said competition for talent and specialised skills is driving up costs and prompting a shift toward hiring non-family professionals. The average annual operating cost is $3 million, rising to $6.6 million for offices with more than $1 billion in assets, and about 11 per cent of offices spend more than $7 million. Renewed state interest in wealth taxes and increased client mobility are also drawing attention, though family offices remain broadly optimistic about the future.
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