Citi Wealth survey of 351 family offices finds inflation concern rising and next-gen transitions now an immediate operational challenge
The world's wealthiest family offices are reallocating toward public markets while simultaneously confronting a near-term generational transition they are not yet fully prepared to manage, according to Citi Wealth's 2026 Global Family Office Report.
The new report, compiled by Citi Wealth's Global Family Office Group, which works with more than 1,900 family offices worldwide, surveyed 351 clients across 41 countries in June and July 2026. It offers the most comprehensive view yet of how single-family offices are repositioning in an era defined by persistent inflation, rising cross-border complexity, and leadership succession timelines that have moved from the back burner to the board agenda.
Public markets reclaim the lead
After years of aggressive rotation into private assets, family offices are once again directing fresh capital toward public equities.
According to the Citi Wealth report, nearly half of respondents increased their public equity exposure over the past year, making listed markets the top destination for new capital. Global developed equities ranked as the most favored asset class for incremental net allocations.
The shift reflects a recalibration rather than a retreat. Portfolio allocations remained well-diversified, with most family offices maintaining positions across private equity, fixed income, and cash. But the re-engagement with public markets signals a growing preference for liquidity and flexibility at a moment when macroeconomic conditions remain unsettled.
"In an environment where returns are increasingly driven by fundamentals rather than valuation expansion, quality matters more than ever," the report noted.
Despite this renewed interest in listed assets, private markets have not lost their strategic appeal. Private equity continues to attract substantial capital, with direct investing on the rise and growth-stage opportunities drawing particular attention. What has changed is the degree of selectivity applied. Family offices are placing greater emphasis on sourcing relationships, sector expertise, and differentiated access, with connectivity cited as a distinct competitive advantage.
Inflation overtakes trade tensions
Among the most notable findings is a shift in the risk hierarchy. Inflation emerged in 2026 as the leading concern among survey respondents, supplanting trade disputes and tariffs, which had dominated the prior year's results. Interest rate developments, financial system stability, and market volatility rounded out the top worries.
The practical response has been a greater emphasis on short-duration income assets, quality equity exposures, and inflation-sensitive diversifiers. Family offices that have grown wary of eroding purchasing power are building portfolios designed to preserve real wealth over longer time horizons.
Despite near-record anxiety about geopolitical uncertainty, the report found that most offices resisted wholesale portfolio repositioning. More than 40 percent of respondents made no major changes during the year, instead making targeted adjustments and expanding their hedging strategies.
Succession moves from theory to urgency
Perhaps no finding carries more immediate relevance for wealth managers than the report's data on generational transition.
Approximately one-third of respondents said they anticipate leadership changes in their family, family office, or family business within the next five years. Yet the obstacles are significant: unclear succession plans, insufficient readiness among future leaders, and a lack of shared vision are the three most commonly cited barriers.
The report makes clear that succession planning must now extend beyond identifying who comes next. It must encompass continuity of governance structures, family values, and decision-making frameworks across generations. Educational programs, advisory board participation, and structured investment exposure are among the tools being used to prepare rising family members for leadership roles.
AI shifts from aspiration to application
Artificial intelligence has moved firmly into operational use across the family office sector.
The Citi Wealth report found offices deploying AI across investment analysis, information management, reporting, workflow automation, and decision support. The focus, respondents were clear to note, is on productivity gains rather than alpha generation. Benefits cited include faster information processing, improved due diligence capabilities, and enhanced operational efficiency.
Critically, the report emphasized that human judgment remains central to final investment decisions. AI is augmenting experienced professionals, not replacing them; a distinction that will matter increasingly to advisors assessing how family office clients are incorporating technology.
Cross-border complexity expands
Wealth is growing more international, and that globalization is adding layers of operational complexity.
Some 38% of respondents said they expect their family's geographic footprint to grow over the next five years. With assets, businesses, and family members increasingly distributed across multiple jurisdictions, tax coordination, asset structuring, and regulatory compliance are absorbing more of the family office's attention.
"Family offices globally are balancing conviction with resilience, opportunity with discipline, and growth with stewardship," said Dawn Nordberg, head of integrated client solutions and the Global Family Office Group at Citi Wealth. "As leading institutional investors, they are deploying capital, building capabilities and creating continuity in ways that will shape future generations."
Alexandre Monnier, head of family office advisory at Citi Wealth, added: "As the world around us becomes more complex, family offices are uniquely positioned to build resilient portfolios, reimagine their operations and professionalize in ways that enable their families to achieve ambitious goals."
The full 2026 Global Family Office Report is available through Citi Wealth's Global Family Office Group, which initiated the survey at its 11th Annual Family Office Leadership Summit in June 2026, attended by more than 150 family office leaders from 25 countries.
