Bank of America Study Highlights Transformations in Family Offices Due to Next Generation Influence

On October 20, 2026, Bank of America released its Family Office Study, indicating a significant transformation within family offices as they prepare for leadership transitions. The study surveyed 355 family office decision-makers in the U.S., revealing that a quarter of these offices have undergone a transition in the past decade, yet only 37% of incoming principals feel very prepared.

The report highlights a shift towards private markets, direct investments, and alternative assets, including sports ownership, which are reshaping family office portfolios. Generational influence is critical, with 79% of family offices with a potential next-generation principal expecting alternative investments to claim a larger share of their portfolios. Additionally, 77% believe philanthropic priorities will evolve with the new generation.

Elizabeth Thiessen, Head of Family Office at Bank of America Private Bank, emphasized the importance of governance and shared vision as families prepare for future leadership. According to the study, private equity accounts for 27% of alternative portfolios, with 59% of family offices looking to increase this exposure in the next three years.

Direct investments are also gaining traction, with 38% of family offices citing ownership stakes as a key opportunity for wealth generation, and 51% prioritizing private equity. Overall, capital growth is the primary investment focus for most offices, outpacing income generation.

Interest in sports investments is growing, with 40% of family offices currently holding such assets, particularly among those with Gen Z or Millennial principals. In the art sector, 30% of family offices with art collections value them at over $25 million.

While 83% of family offices have identified a successor, only 27% have established a trust distribution policy or guiding principles. The study found that nearly all respondents (91%) agree that governance and family education are essential for maintaining alignment on priorities, but only 40% have a formal family education program in place.

Family dynamics pose challenges, cited by 45% of respondents, followed by the complexity of shared assets (37%) and unclear family expectations (36%). Although credit use is prevalent among family offices (92%), only 27% consistently leverage it in their long-term wealth strategy. Most use credit primarily for real estate investments (45%) and to manage liquidity (38%).

Looking ahead, nearly 80% of family offices believe future principals will take a more strategic approach to credit use for wealth-building. Artificial intelligence (AI) is becoming more common in family offices, with 42% reporting regular employee use, largely for data analysis and automation.

Finally, the study indicates a growing demand for technological solutions, with 83% of family members expecting new implementations. Approximately 80% view AI as a way to enhance investment returns, rising to 88% among family offices with next-generation involvement.

The research was conducted by Escalent in January and February 2026, capturing insights from family offices managing from $25 million to over $5 billion in assets.