Key Takeaways
- • BlackRock's annual Global Family Office Survey finds geopolitical uncertainty is the most important issue for 84% of respondents and a critical factor in their capital allocation decisions.
- • Alternatives now make up 42% of single-family office portfolios, up from 39% in 2022, with private credit and infrastructure the most-favored strategies.
- • 32% of family offices plan to increase private credit allocations and 30% plan to raise infrastructure allocations in 2025-26.
- • 60% of family offices are pessimistic about the global outlook, with confidence further shaken by new U.S. tariffs, according to BlackRock's Armando Senra.
- • 22% of the 175 surveyed single-family offices, which collectively manage $320 billion, use or would consider an outsourced chief investment officer.
Summary
Geopolitical uncertainty is pushing family offices out of U.S. equities and toward cash and liquid alternatives, according to BlackRock's annual Global Family Office Survey. The survey describes global family offices as being in "risk-management mode," with 68% reporting efforts to diversify their assets. Some 84% of respondents said geopolitical uncertainty is the most important issue facing them and a critical factor in their capital allocation decisions.
Alternatives are gaining share. According to the data, alternatives now represent 42% of single-family office portfolios, up from 39% in 2022. Private credit and infrastructure are the most-favored alternative strategies, with 32% of family offices planning to increase private credit exposure and 30% intending to raise infrastructure allocations in 2025-26. Infrastructure sentiment is strong, with 75% of respondents reporting a positive view of the asset class.
Sentiment remains weak. Armando Senra, BlackRock's head of institutional business in the Americas, said 60% of family offices are pessimistic about the global outlook and that confidence has been further shaken by new U.S. tariffs. He said family offices are "prioritizing diversification, liquidity, and structural reassessment of risk as they build resilience in their investment portfolios."
The 175 single-family offices surveyed collectively hold $320 billion in assets and many want to work with external partners, particularly in private markets. Respondents cited capability gaps in private-market analytics (75%), deal-sourcing (63%) and internal reporting expertise (57%). Some 22% reported using an outsourced CIO or would consider doing so.
Technology is also on the agenda. A majority said they would consider artificial intelligence for tasks ranging from risk management to cash-flow modelling. Forty-five percent said they are more likely to invest in technology firms building AI solutions, 51% are interested in opportunities expected to benefit from AI growth, and 33% plan to deploy AI internally to improve their investment process. The article originally appeared in Financial Standard, which, like CIO, is owned by ISS STOXX.
Alternatives are gaining share. According to the data, alternatives now represent 42% of single-family office portfolios, up from 39% in 2022. Private credit and infrastructure are the most-favored alternative strategies, with 32% of family offices planning to increase private credit exposure and 30% intending to raise infrastructure allocations in 2025-26. Infrastructure sentiment is strong, with 75% of respondents reporting a positive view of the asset class.
Sentiment remains weak. Armando Senra, BlackRock's head of institutional business in the Americas, said 60% of family offices are pessimistic about the global outlook and that confidence has been further shaken by new U.S. tariffs. He said family offices are "prioritizing diversification, liquidity, and structural reassessment of risk as they build resilience in their investment portfolios."
The 175 single-family offices surveyed collectively hold $320 billion in assets and many want to work with external partners, particularly in private markets. Respondents cited capability gaps in private-market analytics (75%), deal-sourcing (63%) and internal reporting expertise (57%). Some 22% reported using an outsourced CIO or would consider doing so.
Technology is also on the agenda. A majority said they would consider artificial intelligence for tasks ranging from risk management to cash-flow modelling. Forty-five percent said they are more likely to invest in technology firms building AI solutions, 51% are interested in opportunities expected to benefit from AI growth, and 33% plan to deploy AI internally to improve their investment process. The article originally appeared in Financial Standard, which, like CIO, is owned by ISS STOXX.
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