- AI adoption by family offices has tripled since 2024, with 29% now using generative AI for research and reporting.
- Generational wealth transfer is on the horizon, with nearly half of family offices expecting a transition within the next decade.
- Private markets, particularly private credit and real estate, now make up 29% of family office portfolios — a combined $62B in managed assets.
- Startup investing has declined, with families cooling on early-stage ventures in favor of income-generating assets.
Family Offices Shift Gears Amid Market Uncertainty
Following early-year market volatility and global uncertainty, North American family offices are trading risk for resilience, per Campden Wealth. That’s the overarching theme from the newly released 2025 North America Family Office Report by RBC and Campden Wealth, which surveyed 141 family offices across the US and Canada, with an average wealth of $2B.
Return expectations have fallen sharply to 5% for 2025, down from 11% in 2024, and nearly 15% now anticipate negative outcomes — a stark contrast to just 1% last year. In response, nearly half of family offices are prioritizing liquidity, while a third are actively de-risking portfolios.
Private Credit and Real Estate Take Center Stage
Private credit and real estate now account for 29% of the average portfolio, a shift from high-growth startup bets to income-focused and tangible assets. Campden’s report notes that private credit is especially attractive due to elevated interest rates offered by sub-investment-grade borrowers.
Larger family offices are co-investing in private credit deals and allocating more capital to industrial and logistics real estate (30%) and residential housing (23%), particularly in Sun Belt markets like Florida and Texas where job and population growth are outpacing national averages.
Despite recent underperformance in private equity and venture capital, direct private equity remains a favored allocation for future investments.
Caution Around Startups as Venture Interest Fades
Once a darling of family office portfolios, early-stage venture investing has lost favor in 2025. The report cites both lackluster returns and lengthy payoff periods as reasons families are pulling back. One family office CEO noted the need to “minimize the number of failures,” as only a fraction of early bets tend to succeed.
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AI Adoption Accelerates—But People Still Matter
Adoption of automated investment reporting systems jumped from 46% to 69% in a single year. Meanwhile, 29% now use generative AI for reporting and 30% for research, a threefold increase from 2024. Still, experienced human advisors remain central to success — family offices value in-house and external expertise over tech alone.
Preparing for the Next Generation
Succession planning is gaining ground. Nearly 47% expect a generational transition within 10 years, and 69% have a succession plan — up from 53% in 2024.
Philanthropy remains a key bridge between generations. Nearly 90% of family offices donate, with average contributions around $15M, and 81% have mission statements to embed family values beyond wealth.
Why It Matters
The shift in strategy signals a new era of caution and control among ultra-high-net-worth families. As family offices look to safeguard capital, retain flexibility, and navigate leadership handoffs, they’re betting on AI for efficiency, private markets for yield, and philanthropy for legacy — a far cry from the risk-tolerant mindset of recent years.
What’s Next
Expect continued movement toward private credit, real estate, and AI-powered operations, with early-stage startups taking a backseat. As succession planning and intergenerational engagement take priority, family offices are laying groundwork not just for returns — but for long-term legacy.
