Citi Wealth’s recent “2026 Global Family Office Report,” based on responses from 351 family office executives across 41 countries, reveals that leading organizations are constructing long-term strategies grounded in three pillars: capital, capability, and continuity. In an environment characterized by high interest rates, doubts regarding financial system stability, and geopolitical risks, family offices have operated in an agile and disciplined manner. Sector leaders have not allowed uncertainty to paralyze them; instead, they have adopted more deliberate and institutional approaches to investing, deploying technology, and preparing the next generation to preserve wealth.
Extraordinary Performance Amid Uncertainty
Capital management has proven to be exceptionally resilient. Nearly nine out of ten family offices (89%) reported positive portfolio returns so far in 2026. Nearly 60% of respondents reported gains of up to 10%, while 13% reported appreciation in their investments exceeding 15%. The Asia-Pacific region stood out, with 26% of family offices achieving gains above 15%.
Annual return targets reflect a focus on sustainable growth. First, 41% of family offices target returns of 7% to 10%. Another 20% aim for returns between 5% and 7%, while 18% seek margins of 10% to 13%. Finally, in Asia-Pacific, 22% of respondents target annual returns above 15%.
Inflation and Asset Restructuring
The hierarchy of macroeconomic risks shifted substantially in 2026. Inflation emerged as the dominant concern, cited by 63% of respondents (a significant jump from 37% in 2025). This was followed by interest rate trends (44%) and global financial system stability (38%). Notably, concern over trade disputes and tariffs dropped dramatically to 18%. In Latin America, inflation concerns reached their highest level at 76%.
To protect purchasing power, family offices have adjusted their strategic asset allocations. Publicly traded equities currently represent the largest average allocation at 30% of portfolios, followed by fixed income (16%) and cash (12%). Over the past 12 months, equities attracted the largest net capital increase, with 46% of respondents indicating they increased their exposure.
Private Markets and Direct Investment
Private markets remain a fundamental pillar. Looking at private equity, interest is heavily concentrated in growth equity strategies, where 30% plan to increase their allocation. This is followed by venture capital (21%) and secondary transactions (19%).
Direct investment is a widespread practice, with 75% of family offices participating. Growth stage (Series C or D) is the most frequent target area (57%), followed by pre-IPO opportunities in second place (40%), and secondary transactions capturing 40% of respondents.
At the sector level, artificial intelligence (AI) has established itself as the top destination for direct investments, selected by 51% of participants. Healthcare (32%) and real estate (31%) also maintain solid demand. The preferred deal size for these investments ranges between $1 million and $5 million for 44% of family offices, although 26% of the largest firms (with wealth exceeding $500 million) target check sizes between $5 million and $10 million.
Adoption of Artificial Intelligence
Artificial intelligence has transitioned from an exploratory concept into an operational reality. Forty percent of respondents describe their adoption of AI as early-stage, while an additional 30% report moderate adoption. Only 10% report advanced usage. Just 19% indicate no adoption at all—a significant improvement compared to last year.
Primary applications focus on productivity: generating meeting notes and summaries (16% extensive use and 22% in implementation) is the leading use case. In terms of tangible benefits, 67% state that AI has dramatically improved the speed of information processing. Other positive impacts include reducing manual work or headcount (35%) and faster due diligence (35%). In investment management, market and macroeconomic analysis leads adoption, with 12% using it extensively.
Financing and Operating Companies
The link to operating businesses remains strong: 67% of respondents hold controlling stakes in one or more operating businesses. In terms of banking services for these businesses, 40% require capital or credit lines. As for the family offices themselves, 57% turn to securities-based lending or margin facilities as their primary form of leverage, favoring capital efficiency without disrupting their portfolios.
Continuity, Governance, and Succession
Leadership succession is emerging as one of the most pressing issues on the horizon. One-third of family offices expect a leadership transition within the next five years. However, readiness remains deficient: only 17% feel “well prepared,” while 34% consider themselves “somewhat prepared.”
Among the main challenges, the primary obstacle is the lack of a clear leadership succession plan (29%), followed by insufficient preparation of future leaders (24%), and a lack of a clear vision and goals for the future (22%).
When developing the next generation, 46% cite “lack of clarity regarding future roles” as their biggest hurdle, followed by an “insufficient sense of urgency” (42%) and “lack of engagement from the next generation” (39%). To address this situation, family offices are betting on participation in family meetings (56%), meetings with advisors (47%), and professional experience outside the family business (44%).
Cross-Border Complexity and Globalization
Family wealth is internationalizing rapidly. Thirty-eight percent of respondents expect family globalization (living abroad, acquiring new residences, or obtaining citizenships) to increase moderately or significantly over the next five years. This trend is especially pronounced in Latin America, where 58% expect a global impact.
Currently, 26% of family offices operate across multiple jurisdictions, and another 14% are considering doing so. The number one need for cross-border wealth management is tax coordination (59%), followed by asset structuring (43%) and residence/citizenship planning (35%).
Family Values and Purpose
Decisions are deeply rooted in principles. Fifty-five percent of respondents state that family mission and values strongly guide or fundamentally shape their investment strategy. This figure rises to nearly 80% among third-generation family offices and beyond. Nearly half of family offices maintain allocations to sustainable investments, with public equities (23%) and private equity (21%) being the preferred vehicles.
To enhance philanthropic impact, respondents prioritize access to networks and learning opportunities (25%) on par with intergenerational engagement and legacy building (25%), balancing external effectiveness with internal cohesion. In the realm of art, 17% would consider working with art advisors to gain intelligence on the global market.
