BofA study: 37% said incoming principal was very prepared when transition occurred

Only 37% of family office decision-makers said their incoming principal was very prepared when a transition occurred, according to Bank of America's 2026 Family Office Study: Building for Generations. The survey covered 355 U.S. family office decision-makers, with offices ranging from $25 million in assets under management to more than $5 billion; the majority hold over $500 million, according to Bank of America Private Bank.

A quarter of the offices surveyed have seen a leadership transition within the last decade. InvestmentNews's coverage of the study frames the shift around governance as much as succession, noting that the next generation holds starkly different views on investment and risk and that most offices admit they are not yet ready for what comes next.

Elizabeth Thiessen, head of family office at Bank of America Private Bank, said preparation goes beyond picking a successor. "The families best positioned in this transition recognize that preparation goes well beyond identifying the next leader," she said. "It requires strong governance, a shared vision and the ability to adapt to changing opportunities and priorities across generations."

Private equity accounts for about 27% of alternative allocations on average, and 59% of family offices plan to increase that exposure over the next one to three years. Alternatives are the largest single component of the illiquid sleeve at roughly 38% of it, and the overall portfolio splits about 55% liquid to 45% illiquid, according to the study. Half of respondents (51%) named private equity a top opportunity for wealth creation; direct investment into operating companies ranked second at 38%.

Read alongside the succession figures, the allocation data suggests offices are clearer about where returns come from than about who will be making the calls. For an advisor drafting or reviewing a family office investment policy statement, the 55/45 liquid-to-illiquid split and the 38% alternatives share are concrete benchmarks; whether a given family should match them is a separate question.