Family offices are shifting fresh capital back into public equities after years of heavy private-market allocation, even as they confront an imminent generational leadership handoff for which many are unprepared, according to Citi Wealth's 2026 Global Family Office Report.
The report, based on a survey of 351 single-family offices across 41 countries conducted in June and July 2026, found that nearly half of respondents increased their public equity exposure over the past year. Global developed-market equities emerged as the top destination for net new allocations, signaling a preference for liquidity and flexibility amid unsettled macroeconomic conditions. The pivot is a recalibration rather than a wholesale retreat: most offices maintained diversified portfolios spanning private equity, fixed income, and cash, but the renewed interest in listed assets reflects a desire for more liquid, transparent exposure.
Private markets remain strategically important, with direct investing on the rise and growth-stage opportunities drawing particular attention. However, family offices are applying greater selectivity, emphasizing sourcing relationships, sector expertise, and differentiated access. The report notes that connectivity has become a distinct competitive advantage in sourcing deals.
Inflation has overtaken trade tensions as the leading concern among respondents, supplanting tariffs and trade disputes that dominated the prior year's results. Interest-rate developments, financial-system stability, and market volatility round out the top worries. In response, family offices are favoring short-duration income assets, quality equity exposures, and inflation-sensitive diversifiers to preserve real wealth over longer horizons. Despite near-record geopolitical anxiety, more than 40% of respondents made no major portfolio changes, opting instead for targeted adjustments and expanded hedging strategies.
Succession planning has moved from theory to urgency. Approximately one-third of respondents anticipate leadership changes in their family, family office, or family business within the next five years. The most commonly cited barriers are unclear succession plans, insufficient readiness among future leaders, and a lack of shared vision. The report emphasizes that succession now requires continuity of governance structures, family values, and decision-making frameworks across generations. Tools such as educational programs, advisory-board participation, and structured investment exposure are being used to prepare rising family members. This trend is not isolated: a 2025 Bank of America study found that nearly 60% of U.S. family offices expect a generational handover within the next decade, with the rising generation poised to reshape mission and investment approach.
Artificial intelligence has moved firmly into operational use, with offices deploying it across investment analysis, information management, reporting, workflow automation, and decision support. The focus is on productivity gains rather than alpha generation, with benefits including faster information processing, improved due diligence, and enhanced operational efficiency. The report stresses that human judgment remains central to final investment decisions, with AI augmenting rather than replacing experienced professionals.
Cross-border complexity is also expanding: 38% of respondents expect their family's geographic footprint to grow over the next five years. With assets, businesses, and family members increasingly distributed across jurisdictions, tax coordination, asset structuring, and regulatory compliance are absorbing more attention. Dawn Nordberg, head of integrated client solutions and the Global Family Office Group at Citi Wealth, said, "Family offices globally are balancing conviction with resilience, opportunity with discipline, and growth with stewardship."
For advisors, the findings underscore the need to address succession readiness and liquidity preferences. As succession planning becomes a priority across the wealth industry, family offices are seeking partners who can navigate both generational transitions and evolving market allocations. The report's data also aligns with broader trends, such as asset managers pivoting to outsourcing and AI, and advisors lacking formal succession plans, highlighting a systemic challenge.
