In recent years, the priorities of ultra-high-net-worth families have undergone a clear shift. While preserving capital remains important, the conversation today increasingly turns to legacy, purpose, and long-term resilience. The most sophisticated families
are redefining what wealth stewardship means — driven by a generational shift, market volatility, and a more complex regulatory environment.
Evolving priorities and strategies
Five years ago, wealth preservation and tax efficiency dominated most private client discussions. Today, UHNWIs are asking different questions: How do we structure our capital to reflect our values? How do we prepare the next generation? Where are the new
sources of sustainable returns?
Part of this shift stems from the looming
$72.6 trillion generational wealth transfer expected over the next two decades. Younger heirs are more inclined to pursue direct investments, prioritize environmental or social outcomes, and demand clarity on the purpose behind family capital. This creates
both opportunity and tension — especially where legacy structures aren’t designed to accommodate new expectations.
At the same time, investment strategies are becoming more complex. Traditional allocations are giving way to deeper involvement in private equity, venture deals, and direct real estate. In particular, impact investments — once treated as niche — are now
being built into core strategies as families look to align capital allocations with their long-term goals.
Emerging concerns: Managing the external and internal
Despite the evolution, risks prevail. Succession planning remains a persistent gap: a recent
report found that 41% of families expect a generational transition within the next decade, yet nearly half still lack a formal succession plan. Without one, families face the real risk of fragmentation, legal conflict, and inefficient asset transfers.
The concern is particularly acute in leadership transitions. Having no succession plan for their executive team creates structural vulnerabilities that could destabilize operations during a crisis. In the same study, 16% of global respondents ranked succession
unpreparedness as a top threat to their family office.
Meanwhile, a significant blind spot continues to be cybersecurity. Despite growing digital exposure, nearly
only 40% of family offices have a comprehensive cybersecurity framework, according to UBS. This heightens the operational risk given the sensitivity of family data — often spanning assets, identities, and personal relationships.
Other risks are more external in nature. Families cite geopolitical instability, climate change, and sovereign debt as key concerns in shaping their capital strategy over the next five years. Yet, for instance, climate-related preparedness remains low. The
same UBS report states that only 9% of family offices have environmental risk measures in place, despite 49% viewing climate as a top financial risk.
The way forward: Embracing technology and talent
As we can see, traditional family office models are struggling to keep pace. As the scope of wealth management expands from investment strategy to governance, education, and risk management, many offices are constrained by legacy systems, disjointed advisory
networks, and a reactive rather than strategic orientation. The majority still rely on outdated processes and lack the in-house capability to recruit and retain top talent — a result of limited HR infrastructure and informal hiring.
Some families are responding by building in-house teams with backgrounds in investment banking and private equity, a move that reflects their appetite for more control and complex deal execution. Others are pursuing strategic partnerships with fintechs,
or opting for multi-family office structures that offer more scalable expertise.
Technology is also playing a larger role. AI-powered digital platforms now assist with portfolio tracking, compliance, and risk analysis, allowing for greater agility. And as governance gains importance, more families are formalizing structures: drafting
family constitutions, clarifying decision rights, and embedding structured education programs for the younger generations.
Ultimately, the evolution of the family office mirrors the evolution of wealth itself. Success is no longer defined solely by returns, but by resilience, alignment, and continuity. Families that treat governance and strategy with the same diligence as investment
management are far better positioned to weather uncertainty — and to further cement their family’s legacy.
