As global wealth surges, ultra-high-net-worth (UHNW) families are spending record amounts to maintain their private investment firms. According to a 2026 J.P. Morgan Private Bank report quoted by CNBC, family offices with at least $1 billion in assets now see average annual operating costs of $6.6 million, up from $6.1 million in 2024.

The primary driver of this expense surge is compensation. Family offices are increasingly embroiled in a “war for talent,” competing directly with private equity firms and hedge funds to attract elite investment professionals. While 80% of offices outsource parts of their portfolio, they do so to access specialized expertise and private deal flow rather than to cut costs.

A psychological dichotomy is emerging between generations regarding these costs. While the Principals prioritize control and confidentiality over “cost creep,” sometimes losing track of expenses across complex holding companies, the next generation frequently experiences “sticker shock.” Consultants note that heirs are far more likely to consolidate or unwind offices to preserve capital for their own descendants.

End Notes

Source: https://www.cnbc.com/2026/02/19/ultra-rich-families-private-investment-firms-costs-rise.html