Podcast Summary: Family Offices Look to Next Generation of Investors
Bloomberg Businessweek
Date: December 3, 2025
Hosts: Carol Massar, Tim Stenovec
Guest: Elizabeth Thiessen, Head of Family Office Solutions, Bank of America Private Bank
Episode Overview
This episode dives into a new Bank of America study exploring the evolving landscape of family offices—private wealth management firms for ultra-high-net-worth families. The conversation centers on the upcoming massive wealth transfer—estimated at $124 trillion over the next decade—particularly its effect on investing philosophies, intergenerational dynamics, philanthropy, and the increasing influence of women and technology. Elizabeth Thiessen, leading Family Office Solutions at Bank of America Private Bank, breaks down major findings and discusses the challenges, aspirations, and changing face of family offices as they prepare for the next generation of investors.
Key Discussion Points & Insights
1. Scale and Diversity within Family Offices
- Wide Range of Assets Managed:
- Family offices surveyed by Bank of America ranged from managing $25 million to over $5 billion.
- Notably, over 60% of those surveyed control more than $500 million in assets.
- (Elizabeth Thiessen, 03:07)
- Quote:
“So it really is a wide spectrum of family offices that we spoke to and we'll talk about here today in the results.”
— Elizabeth Thiessen, 03:07
2. The Coming ‘Great Family Office Transfer’
- Imminent Wealth Transfer:
- 87% of families have not yet transitioned main control to the next generation.
- 60% expect to do so within 10 years; 33% within 5 years.
- Key Impacts Expected:
- Broader use of technology.
- Increased focus on philanthropy.
- Shifting investment styles and priorities.
- Quote:
“We could call it the great family office transfer... 6 out of 10 expect to transition in the next 10 years, 1 out of 3 in the next 5 years. So it's beginning to unfold.”
— Elizabeth Thiessen, 03:35
3. Shifting Investment Approaches: Rising Role for Alternatives
- Alternatives on the Rise:
- Despite two-thirds describing themselves as 'conservative investors,' allocations are nearly split between marketable securities (36%) and alternatives (34%).
- Alternatives include private equity, direct company investments, and real estate.
- Forward-Looking Preferences:
- Private equity seen as the leading area for future returns, followed by direct investments and real estate.
- Quote:
“What was interesting in the study is 2/3 of the family offices...referred to themselves as conservative investors, but yet their allocation was pretty even between marketable securities and alternatives.”
— Elizabeth Thiessen, 03:35
4. Mission, Purpose, and Family Communication
- Mission May Shift with Next Generation:
- In situations where principal family members are less involved, families expect a 73% likelihood the foundational purpose of the office will change post-transition.
- The Need for Early Conversations:
- Open, intentional communication with younger generations around family wealth, mission, and expectations is crucial to ensuring continuity.
- Quote:
“Having those conversations and that intention early is paramount.”
— Elizabeth Thiessen, 06:07 - Trust Reveals:
- Some families broker staged, milestone-based disclosures of wealth to heirs, rather than sudden “trust fund reveals.”
- Intentionality yields better outcomes in preparing heirs for wealth.
- Quote:
“If there's a really intentional process where that is revealed with milestones and intention, I think that that can have better outcomes ultimately.”
— Elizabeth Thiessen, 08:02
5. The Increasing Influence of Women
- Women and Philanthropy:
- Many women who become major recipients of wealth show a greater focus on philanthropy.
- 51% of surveyed offices expect philanthropy to increase with next-generation leadership, often tied to women in the family.
- Quote:
“Many times women in a family are getting involved early in philanthropy and then that can play through.”
— Elizabeth Thiessen, 08:37
6. The ‘Hidden Complexity’ of Family Offices
- Beyond Investing:
- Family offices manage complex operational tasks beyond investment, such as administration, legal compliance, and succession planning.
- Thiessen refers to this as the “hidden complexity”—an often-underappreciated component of family office work.
- Quote:
“It’s more than just the investment philosophy that they're executing against, you know, it's all the related operational work that comes with that.”
— Elizabeth Thiessen, 08:37
Notable Quotes & Memorable Moments
-
On Wealth Transfer:
“As we know this transfer is beginning to unfold, having like early conversations around, like, what do you want that next generation to do with it?... Having those conversations and that intention early is paramount.”
— Elizabeth Thiessen, 06:07 -
On Philanthropy:
“...When these family offices transition, 51% expect an increased focus on philanthropy with the next gen.”
— Elizabeth Thiessen, 08:37
Important Timestamps
- 01:56 — Host introduction of topic and study findings.
- 02:38 — Elizabeth Thiessen joins and frames the size and diversity of family offices.
- 03:35 — Elizabeth covers primary study findings: upcoming generational transfer and impact on investing/philanthropy.
- 05:46 — Hosts ask about evolving priorities for the next generation — spending vs. stewardship.
- 06:07 — Elizabeth on early communication and safeguarding family mission.
- 07:19 — “Trust reveals” and family communication styles.
- 08:37 — Women’s increasing influence and hidden complexity in family office operations.
Episode Tone
- Data-driven and forward-looking, yet conversational and accessible.
- Guest and hosts emphasize the importance of planning, intention, and open family dialogue as family offices prepare to navigate an unprecedented wealth transition and shifting investment landscape.
For listeners seeking insight into the future of private wealth, the impact of generational change, and the evolving role of women and technology in managing fortunes, this episode is a rich and timely resource.