Key Takeaways
- • Family offices are shifting from passive wealth preservation toward active private markets access platforms that originate, screen, structure and syndicate private deals, according to The Economy Review analysis.
- • A 2025 Citi survey found 70% of family offices had been involved in direct investing, with 40% materially increasing activity in the prior year.
- • Private credit is displacing venture capital as the practical core of family office private markets, with family offices planning to cut private markets allocations from 21% to 18% on average for 2025, mainly by reducing direct investments.
- • Average annual operating costs for single-family offices with more than $1B in assets have climbed above $6.6M, according to J.P. Morgan, raising the barrier to institutional-grade capacity.
- • Talent is becoming a scarce competitive asset, and the article argues policymakers should focus on how much opacity the expanding family office private-capital channel should maintain.
Summary
The Economy Review analysis argues that family office private markets are evolving into an access business rather than a back-office function for established fortunes. The article cites a count of 8,030 single-family offices, up 31% from 2019, with Deloitte forecasting 10,720 by 2030. According to the UBS Global Family Office Report 2023, family offices manage approximately US$5.5 trillion in total family wealth, with around US$3.1 trillion under management. The core value proposition, the article contends, is exclusive access to private transactions before they reach the broader market, including co-investments, special purpose vehicles, cross-border structures and internal sourcing.
The article attributes this shift to a 2025 Citi survey in which 70% of family offices had been involved in direct investing, 40% of which had considerably increased activity the prior year. The author argues that trust, relationships and curation are scarce assets that cannot be bought from consultants or models, and that offices able to convert those relationships into deal flow hold a competitive advantage over those that pay full price for exclusivity.
Private credit has emerged as the favored strategy in this environment, the article says, following the failure of Silicon Valley Bank on 10 March 2023 and a tighter venture funding climate. Citing PitchBook and NVCA data, the article notes that in 2024, 30 firms raising over $500M captured 68% of new venture commitments, while emerging managers raised just $15bn. Family office allocations to private markets averaged 21% in 2024, but offices planning changes for 2025 expected to reduce this to 18%, mainly by lowering direct investments. According to UBS, private markets still represent around 30% of a typical North American family office portfolio. The article characterizes venture as the asset of aspiration and private credit as the asset of operation, offering cash flows and better investment committee support.
The article describes a changing competitive landscape in which family offices compete with private banks, general partners, independent sponsors, alternative managers, outsourced CIO platforms and multi-family offices. It cites an HNW Ranking report indicating independent multi-family offices are expanding coordinated services in 2026. J.P. Morgan data puts average annual operating costs for single-family offices with over $1B in assets above $6.6M, and a 2025 Heidrick & Struggles survey points to a deepening investment talent pool in the US and Europe. The author concludes that talent has become a power commodity and that policymakers should consider how much opacity the expanding private-capital channel should maintain as it competes with regulated intermediaries.
The article attributes this shift to a 2025 Citi survey in which 70% of family offices had been involved in direct investing, 40% of which had considerably increased activity the prior year. The author argues that trust, relationships and curation are scarce assets that cannot be bought from consultants or models, and that offices able to convert those relationships into deal flow hold a competitive advantage over those that pay full price for exclusivity.
Private credit has emerged as the favored strategy in this environment, the article says, following the failure of Silicon Valley Bank on 10 March 2023 and a tighter venture funding climate. Citing PitchBook and NVCA data, the article notes that in 2024, 30 firms raising over $500M captured 68% of new venture commitments, while emerging managers raised just $15bn. Family office allocations to private markets averaged 21% in 2024, but offices planning changes for 2025 expected to reduce this to 18%, mainly by lowering direct investments. According to UBS, private markets still represent around 30% of a typical North American family office portfolio. The article characterizes venture as the asset of aspiration and private credit as the asset of operation, offering cash flows and better investment committee support.
The article describes a changing competitive landscape in which family offices compete with private banks, general partners, independent sponsors, alternative managers, outsourced CIO platforms and multi-family offices. It cites an HNW Ranking report indicating independent multi-family offices are expanding coordinated services in 2026. J.P. Morgan data puts average annual operating costs for single-family offices with over $1B in assets above $6.6M, and a 2025 Heidrick & Struggles survey points to a deepening investment talent pool in the US and Europe. The author concludes that talent has become a power commodity and that policymakers should consider how much opacity the expanding private-capital channel should maintain as it competes with regulated intermediaries.
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