Key Takeaways
- • Alternative assets now represent 42% of family office portfolios, up from 39% in BlackRock's 2022-2023 survey, with 47% of family offices actively adding illiquid and liquid alternatives to diversify returns.
- • Private credit leads alternative asset allocation growth, with 32% of family offices seeking to increase exposure, followed closely by infrastructure at 30%, driven by higher return potential and portfolio flexibility.
- • Geopolitical uncertainty is a primary driver of asset allocation strategy, cited by 84% of family office respondents as a critical factor in reshaping their investment decisions and risk management approaches.
- • Family offices in Asia-Pacific are prioritizing liquid alternatives as fundamental portfolio building blocks alongside private markets, according to BlackRock's Hiro Shimizu, emphasizing diversification and resilience in current market conditions.
- • Infrastructure strategies attracting significant capital flow, with 75% of respondents expressing positive sentiment; family offices plan to increase allocations to both opportunistic (54%) and value-add strategies (51%) within the asset class.
Summary
BlackRock's 2025 Global Family Office Survey reveals a substantial shift toward alternative investments among family offices, with alternatives now commanding 42% of portfolios compared to 39% two years prior. This three-percentage-point increase underscores a strategic pivot in how ultra-high-net-worth portfolios are being constructed, as 68% of family offices prioritize diversification and nearly half actively expand their exposure to alternatives across both liquid and illiquid categories.
Private credit has emerged as the leading alternative asset class for allocation growth, with 32% of respondents indicating plans to increase capital deployment in this segment. Infrastructure ranks as the second-priority alternative, with 30% of family offices seeking greater exposure. This appetite reflects both structural tailwinds in these asset classes and the flexibility they offer relative to traditional public markets. Within infrastructure specifically, family offices demonstrate balanced interest across strategy types, with 54% targeting opportunistic investments and 51% focusing on value-add approaches—both motivated by superior return potential in the current environment.
Geopolitical uncertainty serves as a critical backdrop to these allocation decisions, with 84% of survey respondents identifying it as a material factor shaping their asset allocation frameworks. This elevated concern appears to be driving the demand for diversification away from concentrated public equity exposure and toward alternatives that offer differentiated return sources and inflation protection characteristics.
According to Hiro Shimizu, deputy head of APAC and head of APAC institutional business at BlackRock, family offices in Asia-Pacific are taking proactive steps to increase portfolio resilience while capitalizing on market opportunities. The region is witnessing particular momentum in liquid alternatives, which respondents view as essential building blocks within broader diversification strategies. This geographic insight suggests that alternative asset demand is not concentrated in developed Western markets but reflects a global reallocation trend among sophisticated family office investors.
Private credit has emerged as the leading alternative asset class for allocation growth, with 32% of respondents indicating plans to increase capital deployment in this segment. Infrastructure ranks as the second-priority alternative, with 30% of family offices seeking greater exposure. This appetite reflects both structural tailwinds in these asset classes and the flexibility they offer relative to traditional public markets. Within infrastructure specifically, family offices demonstrate balanced interest across strategy types, with 54% targeting opportunistic investments and 51% focusing on value-add approaches—both motivated by superior return potential in the current environment.
Geopolitical uncertainty serves as a critical backdrop to these allocation decisions, with 84% of survey respondents identifying it as a material factor shaping their asset allocation frameworks. This elevated concern appears to be driving the demand for diversification away from concentrated public equity exposure and toward alternatives that offer differentiated return sources and inflation protection characteristics.
According to Hiro Shimizu, deputy head of APAC and head of APAC institutional business at BlackRock, family offices in Asia-Pacific are taking proactive steps to increase portfolio resilience while capitalizing on market opportunities. The region is witnessing particular momentum in liquid alternatives, which respondents view as essential building blocks within broader diversification strategies. This geographic insight suggests that alternative asset demand is not concentrated in developed Western markets but reflects a global reallocation trend among sophisticated family office investors.
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