Family Offices Must Evolve Fast to Secure Relevance in $105 Trillion Wealth Transfer

juillet 18, 2025

11:55 am

Key Impact Points:

Millennials will control 60% of global wealth within two decades, up from just 3% today.
93% of wealthy millennials plan to boost allocations to alternatives, favoring private equity, crypto, and real estate.
70% of wealth is lost by the second generation without strategic planning—90% by the third.

A Generational Shift in Wealth — and Expectations

Over the next 20 years, $105 trillion in wealth is set to change hands in the U.S. alone—about three times the country’s GDP. According to Cerulli, high-net-worth families will transfer roughly half of that.

“The world is on the cusp of one of the most significant shifts in investing power in history.”

This transfer will radically transform investing priorities. Millennials, born between 1981 and 1996, will go from managing just 3% of global wealth to an estimated 60%, becoming the dominant investor class.

Millennials Want Long-Term, Values-Based, and Alternative Strategies

The next generation doesn’t invest like their parents. Only 28% of millennials believe traditional stocks and bonds offer above-average returns, compared to 72% of older investors (Bank of America, 2024). Instead, millennials are tripling down on alternatives—cryptocurrency, real estate, and private equity.

93% of wealthy millennials plan to increase allocations to alternatives—compared to only 24% of older investors.

They also prioritize values: According to Stanford, the average millennial investor is willing to sacrifice up to 10% of returns to support companies with strong environmental practices. Most baby boomers aren’t willing to sacrifice anything.

Family Offices: Critically Unprepared

Yet many family offices are walking into this seismic transition with no real strategy.

“It clearly takes more than money to build a financial legacy — let alone build one that keeps accumulating.”

Without strong planning, wealth vanishes: 70% is gone by the second generation, 90% by the third (The Williams Group).

To Stay Relevant, Family Offices Must Transform

Millennials are less loyal to traditional advisors and more trusting of fintech. EY reports 49% of 25–34-year-olds now say a fintech firm is their most-trusted financial brand—just 16% trust wealth managers most.

“To support millennial clients with their distinct investment preferences and goals, family offices may first need to rethink their own strategies.”

5 Ways Family Offices Can Seize the Moment

1. Add Alternatives to the Core

Private equity has now overtaken public equity as the top asset class among family offices (PwC, 2024). Nearly 30% plan to invest more in PE, and 61% are exploring new opportunities.

“A diversified portfolio… can be a bulwark against inflation and economic turbulence.”

Private equity, with its long-term horizon and lower exposure to daily volatility, is well suited to millennial preferences.

2. Facilitate Transparency

Inheritance often sparks conflict. Family offices must promote open communication to prevent discord.

“Regular family meetings and an open dialogue across all stakeholders are essential…”

Outside experts can help guide inclusive, forward-looking wealth discussions beyond just finances.

3. Invest in Financial Education

Too often, structured financial education comes too late. RBC reports that education typically begins in heirs’ late twenties.

“A family office may offer educational courses ranging from the basics of investing to philanthropic planning.”

Some offices are appointing Chief Learning Officers to run long-term family learning programs.

4. Stay Ahead of Legal Complexities

As families become global, so do their tax and legal risks.

“You can have the best investments in the world, but if you don’t think about… currency, tax, and reporting, it is irrelevant.” — Robert Paul, London & Capital

Grantor trusts, SLATs, and strategic gifting are key tools for effective cross-border wealth transfer.

5. Think Global from the Start

Affluent millennials live and work internationally, complicating compliance.

To stay competitive, family offices must build expertise in international tax regimes, currency hedging, and global asset management. Tech capabilities and partnerships with service providers will be vital.

Bottom Line:
Family offices that fail to evolve risk losing their relevance to digital-first, purpose-driven, and globally mobile next-gen investors. Those who adapt will become indispensable stewards of one of the largest wealth transitions in history.

Information gathered from: ‘Moonfare Private Office: How can family offices seize the opportunity of the Great Wealth Transfer’