Key Takeaways
- • Family offices with private markets allocations surged 524% since 2016, rising from 651 to 4,067 entities, outpacing growth among wealth management firms (410%) and endowments (81%), according to Preqin data owned by BlackRock.
- • Private markets exposure accelerated significantly in recent years—nearly 21% growth in 2023 and approximately 26% in 2024—with 8% additional growth in the first half of 2025, reflecting sustained institutional appetite.
- • Family offices managed a combined $3.1 trillion in assets by 2024, up 63% from 2019, providing substantially more capital to deploy into illiquid private investments including direct lending, infrastructure, and data centers.
- • Nearly one-third of single-family offices plan to increase allocations to private credit and infrastructure between 2025 and 2026, according to a BlackRock survey conducted in spring 2025, signaling continued momentum in alternative asset deployment.
- • Family offices' structural advantages—minimal liquidity pressures, multi-generational investment horizons, and access to patient capital—position them as increasingly dominant participants in private markets relative to traditional institutional investors.
Summary
Family offices are reshaping the investment landscape at an accelerating pace, with private market allocations becoming a cornerstone of ultra-high-net-worth investment strategy. The number of family offices deploying capital into private markets has surged 524% since 2016, expanding from 651 to 4,067 entities, according to Preqin data. This growth trajectory substantially outpaces competing institutional investor classes: wealth management firms have grown private market exposure by 410% over the same period, while endowments and foundations have increased allocations by only 81%, indicating a structural shift in capital deployment patterns favoring family office vehicles.
The acceleration has intensified during the past three years. Family offices increased private markets exposure by nearly 21% in 2023 and approximately 26% in 2024, with growth continuing at an 8% pace in the first half of 2025. This momentum reflects both expanding asset bases and deliberate strategic repositioning toward alternative investments. Deloitte estimates that family offices managed a combined $3.1 trillion in assets during 2024, representing 63% growth from 2019 levels, providing substantially more dry powder for private capital deployment.
BlackRock's institutional business leadership and consulting professionals attribute this shift to structural advantages inherent to family office operations. According to Armando Senra, who leads BlackRock's institutional business in the Americas, family office activity reflects broader investor interest in private credit and infrastructure. A BlackRock survey conducted in spring 2025 found that nearly one-third of single-family offices plan to increase allocations to private credit and infrastructure through 2026. PwC's Jonathan Flack, leader of the consulting firm's U.S. and global family office practice, emphasized that family offices' reduced liquidity requirements enable long-term illiquid investing. With investment horizons often spanning decades or generations, family offices can pursue direct lending, data centers, and infrastructure opportunities without the redemption pressures constraining traditional asset managers, positioning them as increasingly dominant players in private markets.
The acceleration has intensified during the past three years. Family offices increased private markets exposure by nearly 21% in 2023 and approximately 26% in 2024, with growth continuing at an 8% pace in the first half of 2025. This momentum reflects both expanding asset bases and deliberate strategic repositioning toward alternative investments. Deloitte estimates that family offices managed a combined $3.1 trillion in assets during 2024, representing 63% growth from 2019 levels, providing substantially more dry powder for private capital deployment.
BlackRock's institutional business leadership and consulting professionals attribute this shift to structural advantages inherent to family office operations. According to Armando Senra, who leads BlackRock's institutional business in the Americas, family office activity reflects broader investor interest in private credit and infrastructure. A BlackRock survey conducted in spring 2025 found that nearly one-third of single-family offices plan to increase allocations to private credit and infrastructure through 2026. PwC's Jonathan Flack, leader of the consulting firm's U.S. and global family office practice, emphasized that family offices' reduced liquidity requirements enable long-term illiquid investing. With investment horizons often spanning decades or generations, family offices can pursue direct lending, data centers, and infrastructure opportunities without the redemption pressures constraining traditional asset managers, positioning them as increasingly dominant players in private markets.
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