J.P. Morgan Private Bank Releases 2026 Global Family Office Report

J.P. Morgan Private Bank has released its 2026 Global Family Office Report, based on responses from 333 family offices across 30 countries, each with an average net worth of $1.6 billion. The study examines portfolio allocations, succession and engagement, and strategic and operational foundations amid rising geopolitical and economic complexity.

William Sinclair, Global Co-Head of the Family Office Practice at J.P. Morgan Private Bank, said the bank’s multi-jurisdictional client base offers “a window into how family offices are shaping their futures,” adding that “as family offices navigate a world of unprecedented complexity, our role is to help them transform ambition into enduring impact.”

AI ambitions and portfolio allocation

The report identifies a gap between stated technology ambitions and current portfolios. While 65% of family offices intend to prioritise artificial intelligence, 57% report no exposure to growth and venture capital, and more than 70% have no infrastructure investments, despite AI’s dependence on data centres and digital infrastructure.

Christophe Aba, International Head of Investments & Advice at J.P. Morgan Private Bank, said investors seeking to “fully capture the AI opportunity” should consider supply-chain “enablers” such as semiconductors, power infrastructure, networking and cooling systems. He highlighted the importance of private markets, noting the top ten AI companies are already valued at around $1.5 trillion.

Inflation, geopolitics and alternative assets

Inflation concerns are pushing family offices towards alternative investments. Those most worried about inflation allocate nearly 60 percent of their capital to alternatives, around 20% above the global average, with a particular preference for hedge funds and real estate to manage risk and return expectations.

Despite geopolitical uncertainty now being cited as the top risk by 64% of respondents, most family offices avoid traditional and emerging hedges. According to the report, 72% have no gold holdings and 89% hold no cryptocurrencies, instead favouring tangible assets and established investment strategies.

Family businesses, governance and succession

Business-owning families report more developed governance, with 48% establishing formal structures compared with 40% of non-business-owning peers. However, they are nearly twice as likely to cite internal conflict as a top risk, at 41% versus 23%, and less than half, 48%, include their operating company in their investment allocation.

Elisa Shevlin Rizzo, Head of Family Office Advisory at J.P. Morgan Private Bank, said key risks often arise from “missed synergies, overly lean staffing and a lack of holistic risk management,” issues that intensify during economic and generational transitions. Business owners, she added, are increasingly alert to these internal vulnerabilities.

Rising complexity and operating models

Succession remains a major concern: 53% of business-owning families view it as a top issue, and 86% of all family offices lack a clear succession plan for key decision makers. This absence of defined leadership transition structures is highlighted as a critical weakness as generational change approaches.

Operating costs are rising alongside complexity and competition for specialist talent. The average annual operating cost for a family office is $3 million, increasing to $6.6 million for offices with more than $1 billion in assets. While 40% spend less than $1 million, 11% report annual costs exceeding $7 million.

Outsourcing, technology and cybersecurity

Outsourcing now features prominently in family office strategies. The report notes 80% outsource at least some portfolio management, and more than one-third of offices with $1 billion or more in assets outsource over half of their portfolios. Legal services are outsourced by 52%, trading and market execution by 45%, and cybersecurity by 38%.

Technology platforms and protection of digital information are emerging as core priorities as family offices digitise and aggregate data. Cybersecurity is cited as the greatest service need by 32% of respondents, underlining a shift towards reinforcing systems and expertise to manage operational and security risks.