Family offices expect larger alternative investment allocations, Bank of America study finds
BAC•A Bank of America study found that 79% of family offices with potential next-generation principals expect to increase alternative investment allocations. Private equity makes up 27% of alternative portfolios, and 59% plan to increase exposure over the next three years.
1. Allocation plans
The study found that 79% of family offices with potential next-generation principals expect larger alternative investment allocations. Private equity represents 27% of family office alternative portfolios, and 59% plan to increase exposure over the next three years.
2. Next-generation outlook
Successors have been identified at 83% of family offices, but 40% have formal family education programs. While 27% consistently use leverage for long-term wealth strategies, 77% expect the next generation to show greater interest in wealth-building credit. Eighty percent say AI could improve investment returns, rising to 88% among offices with next-generation involvement.
