Family Offices Split by Generation as $124T Changes Hands: BlackRock
The largest wealth transfer in history is creating a divide inside family offices. Newer offices run by younger generations are more willing to take risks and are investing in private markets differently than established ones. Meanwhile, the bigger challenge for many families is no longer returns but deciding who makes the investment decisions.
BlackRock surveyed more than 200 single-family offices across the Americas with nearly $500 billion in investable assets. The research comes as an estimated $124 trillion passes to heirs and charities between 2024 and 2048.
Nearly four in 10 offices said the next generation is more willing to take investment risk. Only one in five said younger family members are more conservative.
Nearly 30% ranked governance and decision-making as a top concern, ahead of investment returns. Yet nearly two-thirds reported limited or no next-generation involvement in investment decisions.
“As wealth moves across generations, bridging that gap will be critical,” said Jessica Bulen, BlackRock’s head of U.S. family capital, endowments, foundations and health care.
Private markets remain a priority, though approaches differ. Nearly 40% of newer offices plan to increase infrastructure allocations over the next year, compared with just over 15% of established offices.
In private equity, 45% of newer offices favor secondaries, compared with just under 30% of established offices. Established offices lean more toward co-investments, at 75% versus 60%. More than three-quarters of all respondents cited the exit environment as a concern for returns.
“Newer offices are approaching private markets and liquidity differently than their more established peers,” said Armando Senra, head of BlackRock’s Americas institutional business.
More than half of respondents said artificial intelligence is increasingly important or core to their operations. But fewer than 10% have built it extensively into investment decisions.
BlackRock conducted the research with Preqin between July 13 and Aug. 24.