As 2026 begins, family offices are reviewing their investment strategies against a backdrop of unpredictable interest rates, inflation and geopolitics. An informal survey of family office leaders about the challenges they see for 2026 — for their own offices or for family offices more generally — finds market uncertainty underpins many of their concerns.
“Having any sort of certainty of where the markets may be heading” is a challenge, says Wendy Craft, CEO of Elle Family office.
Patricia Saputo, CEO of Placements Italcan Inc., echoes the point about economic unpredictability, citing the difficulty for family offices of “understanding the impact of interest rates and geopolitics on the investment portfolio and whether to readjust the IPS.”
In addition, family offices often have illiquid investments, which can increase the challenges during turbulent times.
“I think most family offices are struggling with waning liquidity in the current environment,” says Meredith Liner, CFO of Mt. Vernon Investments. “Close attention will need to be paid to forecasting expenses and ensuring adequate cash flow to serve the family needs and broader family office goals.”
With increased difficulty forecasting, family offices are adopting varying strategies, with some diversifying their investments and others focused on supporting their current investments.
Diversification: a longstanding goal made urgent by volatility
Market uncertainty, concentration risk and questions about how new technologies like AI will affect the markets are forcing some family offices to confront diversification decisions they have long debated.
“’Is there a right time, and when is the right time?’ is the question I tend to ask about diversification,” says Celine Fitzgerald, a G3 member of Webb & O’Neill Capital and president of the Fitzgerald Family Foundation. “While we talk about it every year, we never fully pull the trigger.”
Diversification can include expanding into emerging industries.
The Pepin Family Office “remains focused on maintaining balance through constant diversification and disciplined asset allocation to ensure long-term support for future generations,” says Tom Lee, CEO of the Pepin Family Office. “At the same time, the Pepin Family Office is looking ahead to emerging opportunities — particularly in quantum computing — as a potential next wave of technological advancement and financial innovation.”
Some of the push toward emerging areas may come from the next generation — which has the potential to lead to tensions that good governance can forestall.
“Who do you think is beating the drum for Bitcoin and emerging asset classes? It’s typically the younger generation,” says Stacy Dick, operating partner with Wingspan Legacy Partners. “This creates a fault line between the generations and within the investment portfolio. How big a bet do we make on Bitcoin? Zero? 10%? 20%? What’s the underlying logic? Does it serve as a diversifier? Does it reduce risk or increase risk? And if it increases risk, do we get compensated sufficiently for it? This is one of the wonderful issues that illustrates how these two things go together: the way governance works at a family office and the nature of the investments that are undertaken.”
Continuity: a renewed focus on existing investments and markets
For some families, existing investments may take priority in unpredictable markets. A number of family offices mentioned support for their portfolio companies through the market uncertainty as a 2026 priority.
Michael Nelson, managing partner and head of investing for Pritzker Private Capital, says the firm’s mission remains consistent — “partnering with leading entrepreneurs and families to build great businesses” — and their priority for 2026 is to continue to support these companies.
“While we continue to operate in an uncertain environment — where consumer confidence remains low, balance sheets are challenged, the job market is unsteady — we are prepared to navigate whatever 2026 may bring, and are hopeful for greater certainty in the new year that will translate into tailwinds for growth,” Nelson says.
Other offices are continuing to focus on areas they were already invested in.
“We are continuing our mandate in the distressed real estate space for at least a portion of the new year,” Craft says. “The market continues to provide opportunities that make distressed a compelling market. We are not entirely sure if this trend will continue for all of 2026, but for the near future, it seems to be.”
Family office leaders understand that uncertainty in the markets is unlikely to be temporary. “We are navigating a world that is changing at an unprecedented pace. As global political, economic and technological shifts accelerate, staying ahead of the curve is essential; even a small lag can create a sense of strategic whiplash,” says Tom Pepin, founder of the Pepin Family Foundation and Pepin Family Office. “As families grow and portfolios become increasingly complex, preserving long-term wealth, maintaining strong governance, and balancing traditional and alternative investments will be more challenging.”