As the wealth of the world’s richest individuals continues to grow, family offices are increasingly shifting their focus toward private investments. Recent data from Preqin reveals a staggering 524% increase in family offices investing in private markets since 2016, climbing from 651 to 4,067. This surge outpaces that of wealth management firms, which grew by 410%, and endowments and foundations at 81%. The trend shows no signs of slowing, with an impressive 21% rise in such investments in 2023 and projections of about 26% for 2024. Moreover, the first half of 2025 witnessed an 8% increase in family offices engaging with private markets.
Armando Senra, head of BlackRock’s institutional business in the Americas, notes that this trend reflects a broader appetite for private credit and infrastructure investments among wealthy clients. A recent survey from BlackRock found that nearly one-third of single-family offices plan to boost their investments in private credit and infrastructure through 2026.
Jonathan Flack from PwC highlighted that this increase can largely be attributed to the growing wealth managed by family offices. According to Deloitte, these entities managed a combined total of $3.1 trillion in 2024, a 63% rise since 2019. Flack explains that family offices are less reliant on liquid cash, allowing them to pursue longer-term, illiquid private investments that align with their generational investment strategies. He stated, “Private markets allow families to invest longer-term in a more stable growth environment compared to the more volatile public markets.”
However, family offices are becoming more discerning when it comes to private investment opportunities. A May survey conducted by UBS indicated a shift in strategy, with family offices planning to increase their holdings in private debt but scale back their private equity investments in favor of gearing up for developed market equities in 2025. Notably, U.S. family offices are expecting a more significant reduction in private equity allocations.
Nevertheless, when asked about their five-year investment outlook, more family offices expressed intentions to increase their allocations to private equity and other private assets, suggesting a nuanced approach to investment strategy. This dual focus indicates that while family offices are adapting to changing market dynamics, they still recognize the long-term potential of private equity and other assets.
This robust growth in family office allocations to private markets not only illustrates the evolving landscape of wealth management but also signals the increasing sophistication and strategic rigor of high-net-worth investors. As family offices continue to adapt their portfolios, the emphasis on private investments underscores a commitment to long-term stability and legacy-building, reflecting broader trends in the financial landscape.
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Original Source: https://www.cnbc.com/2025/08/15/family-offices-private-markets.html
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Publish Date: 2025-08-15 16:30:00
