Key Takeaways
- • Alternative investments now make up 60% of single-family office portfolios versus 41% for traditional assets, according to BNY Wealth data cited by CNBC, marking the first time alternatives have overtaken traditional holdings in that group.
- • JPMorgan Asset Management's private wealth alternative assets in Asia-Pacific rose 40% over the past 12 months, per regional CEO Dan Watkins, while net inflows into open-ended infrastructure funds climbed 30% year on year through Q1 2026, according to PitchBook data cited by UBS.
- • Citi's 2026 survey of 351 family offices ranks inflation as the top concern, followed by interest rates, financial system stability and market volatility, while public equities recorded the strongest net increase in allocations.
- • Family offices are shifting toward direct investments, co-investments and secondary stakes, and are increasingly using evergreen and semi-liquid funds to access alternatives.
Summary
Wealthy investors are expanding exposure to private markets and hedge funds as concerns about inflation, market concentration and geopolitical uncertainty reshape portfolio strategy. As reported by CNBC, citing BNY Wealth, alternative investments account for 60% of single-family office portfolios, compared with 41% for traditional assets. Industry executives describe the move as a push for diversification and returns less tied to listed equities rather than a retreat from public markets.
Demand is rising across hedge funds, private equity, private credit and infrastructure. JPMorgan Asset Management's private wealth alternative assets in Asia-Pacific surged 40% over the past 12 months, according to regional CEO Dan Watkins. Lombard Odier's Asia chief investment officer John Woods said family offices are planning sharper increases in alternatives allocations. Citi Wealth's Olaolu Aganga said hedge funds are attracting strong interest from qualified clients seeking protection from market swings, while private credit is drawing demand for its contractual income streams.
Citi's 2026 survey of 351 family offices shows inflation remains the biggest concern, followed by interest rates, financial system stability and market volatility. The survey also found public equities recorded the strongest net increase in allocations, indicating investors are adding alternatives alongside traditional assets rather than rotating wholesale out of stocks and bonds.
Infrastructure is a major beneficiary, with demand linked to artificial intelligence, electrification and energy security supporting interest in data centers, power networks and digital connectivity. UBS Unified Global Alternatives' Thomas Roland Guyot said investors are targeting these assets for long-term growth and relatively predictable cash flows. PitchBook data cited by UBS shows net inflows into open-ended infrastructure funds rose 30% year on year in the 12 months through Q1 2026.
Private equity remains a core holding, though investors are becoming more selective. Citi Wealth says family offices favor direct company investments, co-investments with private equity managers and secondary purchases of existing fund stakes. Evergreen and semi-liquid funds are lowering minimum investment thresholds and administrative hurdles, but the article cautions about long lockups, delayed valuations, withdrawal restrictions and hidden concentration in AI-linked exposures across real estate, infrastructure and private equity funds.
Demand is rising across hedge funds, private equity, private credit and infrastructure. JPMorgan Asset Management's private wealth alternative assets in Asia-Pacific surged 40% over the past 12 months, according to regional CEO Dan Watkins. Lombard Odier's Asia chief investment officer John Woods said family offices are planning sharper increases in alternatives allocations. Citi Wealth's Olaolu Aganga said hedge funds are attracting strong interest from qualified clients seeking protection from market swings, while private credit is drawing demand for its contractual income streams.
Citi's 2026 survey of 351 family offices shows inflation remains the biggest concern, followed by interest rates, financial system stability and market volatility. The survey also found public equities recorded the strongest net increase in allocations, indicating investors are adding alternatives alongside traditional assets rather than rotating wholesale out of stocks and bonds.
Infrastructure is a major beneficiary, with demand linked to artificial intelligence, electrification and energy security supporting interest in data centers, power networks and digital connectivity. UBS Unified Global Alternatives' Thomas Roland Guyot said investors are targeting these assets for long-term growth and relatively predictable cash flows. PitchBook data cited by UBS shows net inflows into open-ended infrastructure funds rose 30% year on year in the 12 months through Q1 2026.
Private equity remains a core holding, though investors are becoming more selective. Citi Wealth says family offices favor direct company investments, co-investments with private equity managers and secondary purchases of existing fund stakes. Evergreen and semi-liquid funds are lowering minimum investment thresholds and administrative hurdles, but the article cautions about long lockups, delayed valuations, withdrawal restrictions and hidden concentration in AI-linked exposures across real estate, infrastructure and private equity funds.
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