Key Takeaways
- • 84% of family offices cite geopolitical uncertainty as the most critical factor in capital allocation decisions, with 68% actively scrambling to diversify assets and shift into risk-management mode.
- • Alternative investments now represent 42% of single-family office portfolios, up from 39% in 2022, driven by increased allocations to private credit (32% planning increases) and infrastructure (30% planning increases; 75% positive on prospects).
- • 60% of family offices plan to rebalance strategic allocations within 12 months, the highest reallocation intent ever recorded by UBS, with fewer than one in five pursuing risk-on positioning.
- • 175 surveyed single-family offices with $320 billion in combined assets are prioritizing liquidity and diversification away from U.S. equities, with 22% using or considering outsourced chief investment officers due to internal expertise gaps in private-market deal sourcing (63%), reporting (57%), and analytics (75%).
- • Private-market allocations have surged dramatically, with family offices holding such positions increasing 524% since 2016—from 651 to 4,067 entities—reflecting structural portfolio reassessment amid policy and geopolitical headwinds.
Summary
Family offices are fundamentally reshaping portfolio construction in response to escalating geopolitical risks and policy uncertainty. According to BlackRock's annual Global Family Office Survey, 84% of respondents identified geopolitical uncertainty as the most important issue affecting their capital allocation, with 68% actively working to diversify assets. This represents a decisive shift toward what institutional managers term "risk-management mode," departing from traditional equity-heavy positioning and rotating into alternatives and liquid reserves.
Alternative investments have become the centerpiece of this reallocation strategy. Alternatives now comprise 42% of single-family office portfolios, up from 39% in 2022, marking accelerating adoption across the institutional family office universe. Private credit and infrastructure investments are leading this shift, with 32% of family offices planning to increase private-credit allocations and 30% intending to raise infrastructure exposure during 2025–2026. Infrastructure is particularly gaining traction, with 75% of respondents expressing positive sentiment on the asset class's prospects. Concurrently, family offices are reducing direct exposure to U.S. equities and building larger cash positions to preserve optionality amid heightened volatility.
The scale of this transition is substantial. Among the 175 single-family offices surveyed—collectively managing $320 billion in assets—60% plan to change their strategic asset allocation over the next 12 months, representing the highest reallocation intent UBS has ever recorded. Armando Senra, BlackRock's head of institutional business in the Americas, noted that 60% of family offices hold pessimistic views of the global outlook, with confidence further eroded by new U.S. tariff policies. This environment has compelled family offices to prioritize structural resilience through diversification, liquidity management, and comprehensive risk reassessment.
A critical gap emerging from this transition concerns operational capability. Among surveyed family offices, 57% lack adequate internal expertise in private-market reporting, 63% struggle with deal sourcing, and 75% report insufficient analytics capabilities. Consequently, 22% are utilizing or considering outsourced chief investment officers to bridge expertise deficiencies. This trend reflects the complexity of executing alternative-heavy portfolios and the growing reliance on external partners—particularly for private-markets access—as family offices navigate an increasingly fragmented geopolitical and policy landscape. The data underscores that liquidity, diversification, and professional external partnerships have become essential components of institutional family office strategy in 2025.
Alternative investments have become the centerpiece of this reallocation strategy. Alternatives now comprise 42% of single-family office portfolios, up from 39% in 2022, marking accelerating adoption across the institutional family office universe. Private credit and infrastructure investments are leading this shift, with 32% of family offices planning to increase private-credit allocations and 30% intending to raise infrastructure exposure during 2025–2026. Infrastructure is particularly gaining traction, with 75% of respondents expressing positive sentiment on the asset class's prospects. Concurrently, family offices are reducing direct exposure to U.S. equities and building larger cash positions to preserve optionality amid heightened volatility.
The scale of this transition is substantial. Among the 175 single-family offices surveyed—collectively managing $320 billion in assets—60% plan to change their strategic asset allocation over the next 12 months, representing the highest reallocation intent UBS has ever recorded. Armando Senra, BlackRock's head of institutional business in the Americas, noted that 60% of family offices hold pessimistic views of the global outlook, with confidence further eroded by new U.S. tariff policies. This environment has compelled family offices to prioritize structural resilience through diversification, liquidity management, and comprehensive risk reassessment.
A critical gap emerging from this transition concerns operational capability. Among surveyed family offices, 57% lack adequate internal expertise in private-market reporting, 63% struggle with deal sourcing, and 75% report insufficient analytics capabilities. Consequently, 22% are utilizing or considering outsourced chief investment officers to bridge expertise deficiencies. This trend reflects the complexity of executing alternative-heavy portfolios and the growing reliance on external partners—particularly for private-markets access—as family offices navigate an increasingly fragmented geopolitical and policy landscape. The data underscores that liquidity, diversification, and professional external partnerships have become essential components of institutional family office strategy in 2025.
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