Bank of America Family Office Study: Next Generation Set to Reshape Family Offices

Key pointsPrivate markets, direct investments and other alternative assets, including sports ownership, are shaping the future of family office portfolios. Family offices look to strengthen governance and education ahead of succession. Credit and AI are expected to be used strategically by the next generation.The Bank of America Family Office Study: Building for Generations reveals that family offices are entering a pivotal period of transformation as many family offices prepare for leadership transition, and the next generation of principals brings different perspectives on how wealth is invested, managed and preserved.The study found that generational influence is already shaping family office priorities as they build across generations. Among family offices with a potential next-generation principal, 79% predict alternative investments will represent a larger portion of portfolios going forward, while 77% expect philanthropic priorities to evolve with the next generation.Watch Elizabeth Thiessen discuss findings from Bank of America's 2026 Family Office Study. "Today's family offices are building for the future while balancing continuity and changes today," said Elizabeth Thiessen, Head of Family Office at Bank of America Private Bank. "The families best positioned in this transition recognize that preparation goes well beyond identifying the next leader. It requires strong governance, a shared vision and the ability to adapt to changing opportunities and priorities across generations."Alternative assets shape diversification in future family office portfolios Private equity remains a cornerstone of alternative allocations, representing 27% of family office alternative portfolios, while 59% of offices plan to increase exposure over the next three years. Direct investments continue to attract family offices seeking long-term value creation, with 38% citing ownership stakes as a top wealth-generation opportunity. Private equity is No. 1 (51%). For most family offices, capital growth is the investment priority, outranking income generation and balanced positions. Sports ownership is gaining traction. Four in 10 family offices hold sports investments today. Offices with at least one Gen Z or Millennial principal are most likely to own sports teams or sports-related assets. Art can represent a significant store of wealth. Three in 10 family offices with art holdings say that the family's collection is valued at more than $25 million. Family offices focus on closing readiness gaps as leadership transition nears Most family offices have identified a successor (83%), but only 27% of offices have a trust distribution policy or guiding principles in place. Governance and family education remain central to successful transitions. Nearly all (91%) agree they help keep families aligned on priorities, yet fewer than half (40%) of offices have a formal family education program. Nearly nine in 10 agree governance structures help reduce family disagreements, and 73% plan to adopt additional governance structures in the next three years. Family dynamics remain the top governance challenge (45%), followed by the complexity of shared assets (37%) and undefined family expectations (36%).Credit emerges as a strategic wealth tool for the next generation While credit use is nearly universal among family offices (92%), only 27% use leverage consistently as part of a long-term wealth strategy. Today, family offices primarily use credit to support real estate investments (45%), remain invested through market cycles (42%) and bridge short-term liquidity needs (38%). Future principals may take a more strategic approach to borrowing. Nearly eight in 10 family offices (77%) believe the next generation will be more interested in using credit to build wealth. Business-owning families are more likely to embrace credit as a wealth-building tool, with more than twice as many using leverage as part of a long-term wealth strategy compared to families without a wealth-generating business (32% vs. 14%).AI becomes a competitive advantage for modern family offices AI adoption is common across family offices, with 42% of family offices reporting regular employee use, primarily for data analysis (64%), meeting summaries (57%) and automation (49%). Demand for technology continues to grow, and 83% of family members expect their family office to implement new technology solutions. Family offices view AI as a strategic advantage, not just an operational tool. Eight in 10 believe AI has the potential to improve investment returns, rising to 88% among family offices with next-generation involvement.Read more about the study findings: Building for Generations (PDF).2026 Bank of America Private Bank Family Office Study methodologyIn the 2026 Bank of America Family Office Study, Escalent, a research firm, surveyed 355 family office decision makers in the U.S. The firm also spoke with executive-level roles, including principals, C-suite, president/founders and investment professionals. The offices range from $25M in assets under management to more than $5B, with the majority over $500M. The average office tenure is 11–20 years. The survey was fielded in January and February of 2026.Frequently asked questionsQuestion: What family office services does Bank of America Private Bank provide?Answer: Bank of America Private Bank's Family Office practice supports families across governance, investment strategy, strategic credit, trust and estate planning, philanthropy, family education, treasury management, bill pay, accounting and reporting, and specialty asset management. Dedicated Family Office Strategists work alongside Private Bank teams to help families navigate complex decisions related to operating businesses, multigenerational wealth and family governance.Question: What differentiates Bank of America's approach to family office services?Answer: Bank of America Private Bank is differentiated by its ability to connect family offices with capabilities across the broader bank. Through coordinated engagement with Global Commercial Banking, Global Corporate & Investment Banking and Global Markets, families can access treasury and liquidity solutions, commercial and corporate lending, capital markets capabilities, and other specialized resources. Private Bank advisors remain at the center of the relationship, helping ensure a coordinated experience across the enterprise.Question: How does Bank of America Family Office Solutions use technology?Answer: Technology plays an important role in helping family offices manage growing operational complexity. Through a fully outsourced infrastructure solution, families can access aggregated reporting, accounting, bill pay and treasury management capabilities. These services are augmented by CashPro®, Bank of America's integrated digital banking platform that helps businesses and family offices manage cash, payments, and liquidity, while delivering insights on how to make their business operations more efficient.Bank of AmericaBank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving more than 69 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.Reporters may contactCarolyn Batt, Bank of AmericaPhone: 1.646.983.1369[email protected]Important disclosuresNeither Bank of America Private Bank nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.Bank of America Private Bank is a division of Bank of America, N.A.SOURCE Bank of America Corporation

Bank of America Family Office Study: Next Generation Set to Reshape Family Offices

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