Key Takeaways
- • Family offices allocate an average of 48.2% of their portfolios to private markets, and 54% plan to increase exposure over the next five years, according to the IE Family Offices Knowledge Hub report.
- • In Spain, 68.1% of surveyed family offices plan to increase private market allocations, versus 53.4% in the international sample.
- • Average private market allocation rises from 44.9% among offices with one or two specialized professionals to 62.9% among those with teams of six or more.
- • Private equity (16.1%) and real estate (15.1%) are the largest allocations; more than 60% of respondents are satisfied or highly satisfied with returns.
- • In 52% of family offices the final investment decision stays with the family, and only 10% fully delegate it.
Summary
Family offices allocate an average of 48.2% of their portfolios to private markets, and this commitment is expected to grow, according to a new report from the IE Family Offices Knowledge Hub at IE University. The study, titled "The Evolution of the Family Office in Private Markets: From Business-Owning Families to Strategic Investors," was promoted by IE University, Cuatrecasas, Franklin Templeton, and OpenWealth (CaixaBank Group). It is based on an international survey of 157 single-family offices across Europe, North America, Latin America, Asia, and the Middle East, supplemented by 27 in-depth interviews and an analysis of historical investment data. The report was presented at IE Tower in Madrid.
By asset class, private equity (16.1%) and real estate (15.1%) account for the largest shares. More than 60% of respondents report being satisfied or highly satisfied with returns, and none of the surveyed family offices invest exclusively in their domestic market. The study links private market exposure to internal capabilities: the average allocation rises from 44.9% among offices with one or two specialized professionals to 62.9% among those with teams of six or more.
The report also examines decision-making and governance. In 52% of family offices the final decision remains with the family, and 10% fully delegate it. The authors identify four stages in the evolution from business-owning families to strategic investors and propose four practical systems: an investment policy, a governance model, a capital cycle management system, and a wealth architecture.
The Spanish sample shows a young ecosystem with strong private market commitment. Of the Spanish offices surveyed, 41.2% were established after 2015 and 53% represent first-generation families. Some 71.7% invest in private markets, allocating an average of 47.2%, with real estate (16.2%), private equity (13.2%) and venture capital (10.5%) leading. Venture capital's share is significantly larger than in the rest of the sample. Satisfaction is also higher: 23.5% of Spanish respondents are very satisfied versus 7.1% elsewhere. In Spain, the final investment decision rests with family members in 61% of offices.
Cristina Cruz, academic director of the IE Family Offices Knowledge Hub, said the central challenge is no longer access to opportunities but building governance, processes, and capabilities. Marta Alonso, general manager of OpenWealth, Javier Villegas, Head of Iberia and Latam at Franklin Templeton, and Carlos Ferrer, partner at Cuatrecasas, each emphasized the need for integrated governance and generational planning. Carlo Bonomi, Managing Director of Investindustrial, also shared his perspective at the event.
By asset class, private equity (16.1%) and real estate (15.1%) account for the largest shares. More than 60% of respondents report being satisfied or highly satisfied with returns, and none of the surveyed family offices invest exclusively in their domestic market. The study links private market exposure to internal capabilities: the average allocation rises from 44.9% among offices with one or two specialized professionals to 62.9% among those with teams of six or more.
The report also examines decision-making and governance. In 52% of family offices the final decision remains with the family, and 10% fully delegate it. The authors identify four stages in the evolution from business-owning families to strategic investors and propose four practical systems: an investment policy, a governance model, a capital cycle management system, and a wealth architecture.
The Spanish sample shows a young ecosystem with strong private market commitment. Of the Spanish offices surveyed, 41.2% were established after 2015 and 53% represent first-generation families. Some 71.7% invest in private markets, allocating an average of 47.2%, with real estate (16.2%), private equity (13.2%) and venture capital (10.5%) leading. Venture capital's share is significantly larger than in the rest of the sample. Satisfaction is also higher: 23.5% of Spanish respondents are very satisfied versus 7.1% elsewhere. In Spain, the final investment decision rests with family members in 61% of offices.
Cristina Cruz, academic director of the IE Family Offices Knowledge Hub, said the central challenge is no longer access to opportunities but building governance, processes, and capabilities. Marta Alonso, general manager of OpenWealth, Javier Villegas, Head of Iberia and Latam at Franklin Templeton, and Carlos Ferrer, partner at Cuatrecasas, each emphasized the need for integrated governance and generational planning. Carlo Bonomi, Managing Director of Investindustrial, also shared his perspective at the event.
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