Key Takeaways
- • Alternatives now account for 60 per cent of family office portfolios, up from 48 per cent last year, according to BNY Wealth's latest survey of 290 single family offices.
- • JPMorgan Private Bank finds private investments account for almost a third of family office portfolios on average, with private equity topping the list of planned increases.
- • 51 per cent of family offices made six or more direct investments in the past year (BNY Wealth), while 64 per cent invest through direct minority stakes and 49 per cent through majority stakes (JPMorgan).
- • Infrastructure averages 7 per cent of family office portfolios per BNY, with 56 per cent of respondents planning to increase exposure, yet JPMorgan finds 79 per cent hold no infrastructure investments.
- • Time demands (48 per cent), finding right operators or general partners (41 per cent) and lack of operating expertise (30 per cent) are the main challenges cited in direct investing.
Summary
Private markets are becoming an increasingly important component of family office portfolios as wealthy families seek diversification, long-term returns and access to opportunities unavailable on public markets. According to BNY Wealth's latest survey of 290 single family offices, alternatives now represent 60 per cent of portfolios, up from 48 per cent the prior year. A separate JPMorgan Private Bank study finds private investments make up almost a third of portfolios on average, with private equity leading the list of asset classes investors plan to increase exposure to.
Family offices are also moving beyond conventional fund commitments toward direct deals, co-investments and more sophisticated private markets strategies. Chuck Long, head of international markets and family office at BNY Wealth in the US, said the shift has been building for several years and now extends to a broader opportunity set including private equity, private credit, venture capital, infrastructure and other less correlated assets. Long said the top themes families are investing around are AI, renewable energy, healthcare and traditional energy, noting AI is reshaping the investment case in several of those areas.
Direct investing is a growing feature of family office activity. JPMorgan reports 64 per cent invest through direct minority positions and 49 per cent through majority positions. Sunaina Sinha Haldea, global head of private capital advisory at Raymond James in London, said family offices have evolved from passive allocators into sophisticated direct investors building institutional-quality teams. Co-investments, which involve investing alongside a private equity manager in a specific deal, can reduce overall private market fees, according to Long, and provide an additional layer of diligence because the general partner has already underwritten the investment. Sinha Haldea said the strongest family offices compete on more than price, offering founders speed, discretion and long-term ownership without a conventional fund exit timetable.
Infrastructure is emerging as a favoured asset class, accounting for 7 per cent of family office portfolios on average per BNY's survey, with 56 per cent planning to add exposure. Exposure remains uneven, however, as JPMorgan found 79 per cent of family offices have no infrastructure investments. Long attributed growing institutional interest to AI-driven demand for energy generation, grid efficiency and data centres, alongside energy security, power network modernisation and inflation-aware portfolio exposure.
The article also highlights execution challenges. Almost half of BNY respondents (48 per cent) cited the time-consuming nature of direct investing, 41 per cent struggled to find the right operators or general partners and 30 per cent pointed to a lack of operating expertise. Sinha Haldea cautioned that the market remains highly fragmented and that relatively few family offices have the resources to execute large, complex transactions independently. JPMorgan's report finds 80 per cent of family offices outsource at least some portfolio management.
Family offices are also moving beyond conventional fund commitments toward direct deals, co-investments and more sophisticated private markets strategies. Chuck Long, head of international markets and family office at BNY Wealth in the US, said the shift has been building for several years and now extends to a broader opportunity set including private equity, private credit, venture capital, infrastructure and other less correlated assets. Long said the top themes families are investing around are AI, renewable energy, healthcare and traditional energy, noting AI is reshaping the investment case in several of those areas.
Direct investing is a growing feature of family office activity. JPMorgan reports 64 per cent invest through direct minority positions and 49 per cent through majority positions. Sunaina Sinha Haldea, global head of private capital advisory at Raymond James in London, said family offices have evolved from passive allocators into sophisticated direct investors building institutional-quality teams. Co-investments, which involve investing alongside a private equity manager in a specific deal, can reduce overall private market fees, according to Long, and provide an additional layer of diligence because the general partner has already underwritten the investment. Sinha Haldea said the strongest family offices compete on more than price, offering founders speed, discretion and long-term ownership without a conventional fund exit timetable.
Infrastructure is emerging as a favoured asset class, accounting for 7 per cent of family office portfolios on average per BNY's survey, with 56 per cent planning to add exposure. Exposure remains uneven, however, as JPMorgan found 79 per cent of family offices have no infrastructure investments. Long attributed growing institutional interest to AI-driven demand for energy generation, grid efficiency and data centres, alongside energy security, power network modernisation and inflation-aware portfolio exposure.
The article also highlights execution challenges. Almost half of BNY respondents (48 per cent) cited the time-consuming nature of direct investing, 41 per cent struggled to find the right operators or general partners and 30 per cent pointed to a lack of operating expertise. Sinha Haldea cautioned that the market remains highly fragmented and that relatively few family offices have the resources to execute large, complex transactions independently. JPMorgan's report finds 80 per cent of family offices outsource at least some portfolio management.
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