A generational divide is emerging among family offices, changing how some of the world's wealthiest families invest, manage risk and plan for succession, according to new research from BlackRock. The shift comes as an estimated $124 trillion is expected to pass to heirs and charities between 2024 and 2048.
The BlackRock 2026 Family Office Survey, conducted with Preqin, covered more than 200 single family offices across the Americas, representing nearly $500 billion in investable assets. It found clear differences between newer and more established offices in how they approach investing, liquidity, risk and governance.
Nearly four in ten family offices say the next generation is more willing to take investment risk, while only one fifth say younger family members are more conservative. Established offices are more focused on market downturns, leverage and manager selection, while newer offices pay closer attention to fees, transparency and illiquidity.
Armando Senra, Head of the Americas Institutional Business at BlackRock, said the industry is seeing a shift not only in appetite for risk but in how families evaluate it, with newer offices approaching private markets and liquidity differently from their more established peers.
United on private markets, divided on liquidity
Private markets remain a priority, but newer and established offices differ on where and how they invest. Infrastructure stands out: nearly three in ten family offices plan to increase allocations over the next 12 months, and just over 5% plan to reduce exposure. Interest is strongest among newer offices, nearly 40% of which plan to add to infrastructure, compared with just over 15% of established offices.
Private equity also remains a significant allocation. More than half of family offices put over 15% of their alternative holdings into the asset class, and over 30% plan to increase exposure over the next year. Newer offices lean towards secondaries (45%, against just under 30% of established offices), while established offices show a stronger preference for co-investments (75% versus 60%). More than three-quarters of respondents cite the exit environment as a concern for returns.
Views on private credit differ too. Established offices are more likely to see it as a source of income (nearly 35%) or diversification (just over 30%), while newer offices put more weight on absolute risk-adjusted returns.
Approaches to liquidity vary widely. More than 25% of respondents target less than 30% of their portfolios in liquid assets, while nearly 25% target more than 60%. More than half are adjusting their portfolios as markets shift, most often by increasing diversification (35%). Just 10% are targeting higher returns, and fewer than 10% are reducing exposure to risk assets.
Governance overtakes returns as the top challenge
Governance and decision-making are now the most frequently cited challenge, with nearly 30% of family offices ranking them a top concern, ahead of investment returns. More than four in ten say the growing geographic spread of family members is creating new challenges; of these, more than 70% point to tax and regulatory issues and nearly 40% to cross-border estate and succession planning.
Artificial intelligence is also gaining ground. More than half of respondents say AI is increasingly important or core to their operations, particularly for research and productivity, yet fewer than 10% say it is extensively built into investment decision-making.
Jessica Bulen, Head of U.S. Family Capital, Endowments, Foundations and Healthcare at BlackRock, noted that nearly two-thirds of family offices report limited or no next-generation involvement in investment decisions. As wealth moves across generations, she said, bridging that gap will be critical if governance, succession planning and decision-making are to keep pace with increasingly complex portfolios.
Source: BlackRock via Business Wire.
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