Nearly four-fifths (79%) of family offices with a prospective next-generation principal anticipate that alternative investments will represent an expanding proportion of their portfolios in the years ahead, according to research from Bank of America.
The study, Building for Generations, examined how succession planning is affecting investment, governance, philanthropy, credit, and technology decisions.
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Escalent conducted the research for the 2026 Bank of America Family Office Study, surveying 355 family office decision makers in the US.
It found that 77% of family offices expect philanthropic priorities to change as the next generation takes a greater role.
Private equity remains the largest component of alternative portfolios, representing 27% of allocations.
Notably, 59% of family offices intend to increase private equity exposure over the next three years.
Direct investments are also a focus for long-term wealth creation, with 38% of respondents identified ownership stakes as a leading opportunity, compared with 51% for private equity.
Sports investments are becoming more common.
Four in 10 family offices currently invest in sports, while offices with at least one Gen Z or Millennial principal are the most likely to hold sports teams or sports-related assets.
Governance and family education were widely viewed as important for keeping families aligned on priorities, with 91% agreeing. However, only 40% of offices have a formal family education programme.
Credit is used by 92% of family offices, but only 27% use leverage consistently within a long-term wealth strategy.
The most common uses are supporting real estate investments, cited by 45%; remaining invested through market cycles, at 42%; and meeting short-term liquidity needs, at 38%. Artificial intelligence (AI) is also being adopted across family offices with 42% reported regular employee use of AI, mainly for data analysis, meeting summaries, and automation.
