- Family offices are increasingly focusing on risk management, with diversification and alternative assets gaining importance.
- 84% of family offices cite geopolitical uncertainty as a critical factor influencing their investment strategies.
- The allocation to alternative assets in family office portfolios has grown to 42%, with private credit and infrastructure as preferred choices.
BlackRock (BLK, Financial) has released its 2025 Global Family Office Survey, highlighting a shift towards intensified risk management strategies among family offices globally. The survey reveals a significant increase in the allocation to alternative assets, which now constitute 42% of family office portfolios, an uptick from 39% reported in the previous survey. This trend underscores the growing importance of diversification and the pursuit of idiosyncratic return sources amid ongoing geopolitical uncertainties.
Geopolitical tensions, disruptions in trade, and increasing geopolitical fragmentation are seen as pivotal concerns for family offices, with 84% of respondents identifying these issues as key factors in their capital allocation decisions. The resulting sentiment has turned pessimistic for the first time since the survey's inception in 2020, with 60% of family offices expressing a negative outlook on the global economy. This caution is expected to persist into 2026.
The survey also notes a robust increase in investment in private credit and infrastructure, with nearly a third of family offices planning to boost their allocations to these asset classes over the next year. Private credit, particularly in special situations and direct lending strategies, is favored by 32% of respondents, while 30% are inclined towards infrastructure investments. The latter is attributed to its potential for stable cash flows and portfolio diversification.
Despite these challenges, family offices remain optimistic about mitigating negative global economic impacts through strategic diversification and collaborations. A significant portion of these offices are seeking partnerships to enhance their internal capabilities, particularly in areas like private market analytics and deal sourcing. To this end, many are considering or already using Outsourced Chief Investment Officers (OCIOs) for specialized expertise.
The survey also sheds light on the adoption of AI technologies, with family offices showing interest in leveraging AI for risk management and cash-flow modeling, albeit facing certain technical and organizational barriers. Notably, 45% of respondents are investing in tech firms developing AI solutions, while 51% are exploring investment opportunities benefiting from AI advancements.
