North American family offices are modernizing operations and lowering their return expectations as they prepare to hand the reins to the next generation, according to the 2025 North America Family Office Report by RBC and Campden Wealth. The survey of 141 family offices managing a collective $285 billion found that 47% expect to transition leadership within the next decade, and nearly a quarter (22%) plan to do so within five years. 

Succession planning has accelerated sharply, with 69% of family offices now having formal transition plans—up from 53% in 2024. Alongside this leadership shift, family offices are embracing automation and artificial intelligence to streamline investment operations. Nearly a third (29%) are using generative AI for investment reporting, while 30% employ it for research. Adoption of automated reporting systems surged to 69%, up from 46% last year. 

“Generative AI offers family offices the opportunity to streamline routine processes and enhance staff capacity for higher-value work,” said Manju Jessa, vice president and head of family office and strategic clients for RBC’s Enterprise Strategic Client Group. 

Despite this wave of modernization, family offices have turned more cautious about investment performance. Average expected returns have dropped to 5% for 2025, compared with 11% projected a year earlier. Notably, 15% of respondents now expect negative returns, up sharply from just 1% in 2024. This subdued outlook is prompting strategic recalibration: nearly half aim to increase liquidity, one-third plan to reduce portfolio risk, and cash emerged as the most favored asset class for the next 12 months. 

For those maintaining public market exposure, leading sectors include artificial intelligence, defense, and the “Magnificent Seven” mega-cap technology stocks. Still, family offices remain committed to private markets despite recent underperformance in private equity and venture capital. Private market holdings now account for 29% of the average family office portfolio, with 88% maintaining exposure to private equity, venture capital, or private credit. 

Private equity funds remain the dominant allocation, though direct private equity deals represent the fastest-growing segment. Only 12% of respondents plan to reduce private market exposure in 2025, underscoring long-term conviction in illiquid investments. 

“With their ability to take a patient and flexible approach, family offices are well-suited to private markets, where they can invest across a broad spectrum of opportunities—from emerging businesses to transformative technologies,” Jessa added. 

The survey was conducted between April and August 2025 and captured responses from family offices with average wealth of $2 billion.