Key Takeaways
- • 84% of family offices cite geopolitical environment as a critical challenge, with 60% expressing pessimism about global prospects, particularly following new U.S. tariff announcements, according to BlackRock's Global Family Office Survey 2025.
- • 68% of family offices are actively increasing diversification efforts, while 47% are expanding use of alternative return sources including private credit, infrastructure, illiquid alternative assets, equities outside the U.S., and cash holdings.
- • Private markets allocation is accelerating as family offices seek higher returns and diversification, with the global alternative assets industry projected to exceed $30 trillion in AUM by 2030, per Preqin data cited in the BlackRock report.
- • Family offices are partnering increasingly with external managers in private markets rather than managing these allocations internally, reflecting a structural shift in capital deployment strategy.
- • Risk management posture expected to persist through 2026, with cautious positioning driven by geopolitical tensions, policy uncertainty, and market fragmentation showing no signs of abating.
Summary
Family offices globally have shifted into defensive positioning as geopolitical uncertainty becomes the dominant factor in capital allocation decisions. BlackRock's 2025 Global Family Office Survey, titled "Rewriting the Rules: Family Offices Navigate a New World Order," reveals a marked deterioration in sentiment and a reorientation toward risk mitigation strategies. According to the survey, 84% of family offices identify the current geopolitical environment as a critical challenge influencing investment decisions, while 60% express pessimism about global economic prospects. This negative outlook has been reinforced by recent U.S. tariff announcements, which have further constrained confidence among ultra-high-net-worth investors.
In response to heightened uncertainty, family offices are pursuing diversification as a primary risk management tool. The survey indicates that 68% of family offices are focused on increasing diversification across their portfolios, while 47% are deliberately expanding their exposure to multiple return sources. This expansion includes increased allocations to private credit and infrastructure—two asset classes gaining particular traction as family offices seek yield and stability in volatile markets. Notably, 47% are broadening their use of illiquid alternative assets, non-U.S. equities, liquid alternative assets, and cash positions to build portfolio resilience.
The shift toward private markets reflects both structural portfolio rebalancing and a growing reliance on external managers. Family offices are increasingly outsourcing private markets allocation to specialized managers rather than developing internal capabilities, signaling a preference for expertise and risk containment. This trend aligns with broader industry dynamics: the global alternative assets industry is projected to exceed $30 trillion in assets under management by 2030, according to Preqin data cited in the BlackRock report.
Armando Senra, Head of Institutional Business for the Americas at BlackRock, characterized the current environment as one where "family offices globally entered 2025 cautiously, a stance expected to continue through 2026." This extended cautious positioning reflects expectations that geopolitical tensions, policy changes, and market fragmentation will persist, leaving family offices in "risk management mode" for an extended period. The combination of trade disruption concerns and geopolitical fragmentation is fundamentally reshaping capital allocation priorities, with family offices prioritizing capital preservation and diversification over aggressive growth strategies.
In response to heightened uncertainty, family offices are pursuing diversification as a primary risk management tool. The survey indicates that 68% of family offices are focused on increasing diversification across their portfolios, while 47% are deliberately expanding their exposure to multiple return sources. This expansion includes increased allocations to private credit and infrastructure—two asset classes gaining particular traction as family offices seek yield and stability in volatile markets. Notably, 47% are broadening their use of illiquid alternative assets, non-U.S. equities, liquid alternative assets, and cash positions to build portfolio resilience.
The shift toward private markets reflects both structural portfolio rebalancing and a growing reliance on external managers. Family offices are increasingly outsourcing private markets allocation to specialized managers rather than developing internal capabilities, signaling a preference for expertise and risk containment. This trend aligns with broader industry dynamics: the global alternative assets industry is projected to exceed $30 trillion in assets under management by 2030, according to Preqin data cited in the BlackRock report.
Armando Senra, Head of Institutional Business for the Americas at BlackRock, characterized the current environment as one where "family offices globally entered 2025 cautiously, a stance expected to continue through 2026." This extended cautious positioning reflects expectations that geopolitical tensions, policy changes, and market fragmentation will persist, leaving family offices in "risk management mode" for an extended period. The combination of trade disruption concerns and geopolitical fragmentation is fundamentally reshaping capital allocation priorities, with family offices prioritizing capital preservation and diversification over aggressive growth strategies.
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