Family offices are accelerating efforts to professionalise, diversify, and align investments with next-generation values amid geopolitical instability and regulatory uncertainty, according to TMF Group.

Its report on how family offices are adapting to global uncertainty and the priorities of the next generation found that political changes around the globe were prompting increased efforts around wealth relocation, restructuring, and governance.

In the UK and Channel Islands, reforms such as changes to the non-dom regime and inheritance tax were driving both inflows and outflows of wealth, according to the report.

Jersey’s appeal continued to be strong due to its robust legal framework and alignment with international transparency standards, TMF Group added.

TMF Group’s analysis drew on insights from private wealth and family office professionals, and highlighted four key trends influencing family offices’ strategies.

It stated that geopolitical volatility was fuelling diversification, with families entering new markets and industries to mitigate jurisdictional risk and capture regional growth.

Decisions were increasingly being shaped by scenario planning, using risk-weighted models to evaluate jurisdictional resilience under several geopolitical outcomes.

Family offices were choosing jurisdictions based on stability and regulation, as while tax remained a consideration, institutional stability, legal system transparency, local capital market depth, and enforceability of cross-border agreements were becoming decisive factors.

Meanwhile, the next generation of high net worth individuals were continuing to focus on ethical investing.

For many, these were embedded into long-term portfolio strategy, with capital being allocated to sectors including renewable energy, climate technology, and sustainable agriculture, alongside philanthropic ventures.

Finally, the report highlighted the increased professionalisation of family offices, transitioning from loosely structured advisory arrangements to fully integrated, multi-jurisdictional operations.

This included appointing C-suite executives with international experience, adopting enterprise-level governance frameworks, and building internal compliance capabilities.

“The private wealth sector is undergoing a fundamental shift,” commented TMF Group global head of private wealth and family offices, Tim Houghton.

“Families are not only seeking to safeguard their assets in a volatile world, they are actively redefining what resilience means, with a sharper focus on diversification, operational excellence and ethics.

“The most successful family offices will be those that can combine strategic agility with robust governance.”

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