The 2026 Family Office Pivot: Why Strategy Without Data Infrastructure is Just Speculation‍

The investment and operational landscape for global family offices is undergoing a profound shift. J.P. Morgan’s 2026 Global Family Office Report, reflecting the perspectives of 333 family offices across 30 countries, reveals a community recalibrating for a future defined by global complexity, technological disruption and multigenerational transitions.

While the "headlines" often focus on market volatility, this year’s data shows family offices moving toward deliberate, long-term strategies designed for lasting resiliency. You can download the full report here but here are the critical insights and an actionable roadmap derived from this year's findings.

1. The AI gap: ambition vs. implementation 

Artificial Intelligence sits at the top of the strategic priority list, with 65% of global family offices planning to prioritise AI investments. However, a significant execution gap remains:

• Physical Infrastructure: 79% of family offices lack any allocation to the power and connectivity required to sustain AI.
• Missing Innovation: Over half of respondents have no exposure to the growth equity or venture capital sectors driving the technology's application.
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→ Actionable Insight: to truly capture AI’s potential, offices must look beyond "flashy" applications and consider the "physical backbone" (logistics, power, and connectivity) required to support it.

2. Portfolio recalibration: alternatives assets move centre stage

The era of seamless globalization and low inflation has ended, replaced by forces of fragmentation and structural inflation. In response, family office portfolios are converging with institutional models where alternatives are now a strategic pillar rather than a tactical complement.

• Risk Asset Preference: Public equities (8.4%) and private investments (30.8%) now account for more than two-thirds of average assets.
• Inflation Hedges: Offices viewing inflation as their primary risk allocate nearly 60% to alternatives, roughly double the average for real estate and hedge funds.
• Private Equity Momentum: 37% of participants expect to raise their private equity allocations in the next 12 to 18 months, the highest intended increase among all asset classes.

3. Strengthening structural foundations to ensure data governance

As family enterprises grow in size and scope, the "human" side of the balance sheet, governance and succession, is becoming a dominant operational risk.

• The succession crisis: a staggering 86% of global family offices lack a clear succession plan for key decision-makers.

• Governance adoption: while 83% have some formal governance, adoption often starts with investment-related structures like investment committees (64%) before moving to broader family mission statements (26%).
• Rising generation preparedness: 28% of offices cite an "unprepared rising generation" as a top-three risk to continuity.
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→ Actionable Insight: families maximizing their chances of continuity focus on three elements: establishing a common mission, investing in family system development (like regular family meetings), and fostering individual growth through external education and experience.

4. Operational excellence and outsourcing

The average annual operating cost for a family office with over $1 billion in assets has reached $6.6 million. To manage this complexity and cost, offices are increasingly leveraging external expertise:

• Strategic outsourcing: 80% of offices use some form of portfolio outsourcing.
• Technical specialization: specialized functions like legal services (52%) and cybersecurity (38%) are the most likely to be wholly outsourced to third-party providers.
• Internal focus: administrative services like staffing and financial reporting remain largely insourced to maintain control and privacy.

The road ahead in 2026 wealth management: an actionable summary

To build lasting resiliency, family office leaders should consider the following roadmap based on the 2026 data:

1. Audit your AI strategy: ensure your investment exposure includes the infrastructure and venture-stage companies that support the technology.

2. Formalise governance early: don't wait for a crisis; move from informal arrangements to structured boards and investment policy statements.

3. Prioritise Succession: begin the "lifelong journey" of preparing the rising generation through wealth education and involvement with professional advisors.

4. Strengthen cybersecurity: as targeted threats increase, proactive cyber defenses are critical to safeguarding family data and assets. Move beyond basic passwords to regulated, monitored data extraction.

The 2026 report paints a picture of a resilient community that is moving from reactive to proactive, ensuring that their structural foundations are as robust as their investment ambitions.

At Flanks, we are dedicated to helping you navigate this complexity by providing the automated, custodian-agnostic intelligence layer you need to bridge the infrastructure gap and scale your business with precision. 

‍Ready to bridge the infrastructure gap? Let’s Talk.