Key Takeaways
- • 75% of family offices expect to increase investment risk appetite over the next 12 months, with 13% predicting dramatic increases, according to a new Ocorian global study covering $119.37 billion in managed wealth across 16 countries.
- • Private equity will see the largest allocation increases, with all family offices surveyed planning to boost PE allocations over the next two years, and two-thirds targeting increases of 25–50% during this period.
- • Greater transparency around alternative assets is the primary driver, with 61% of respondents citing improved disclosure as the key reason for accepting higher risk, while 48% point to falling interest rates and AI/tech outperformance as secondary motivators.
- • Alternative assets now represent 42% of family office portfolios, up from 39% in 2022–2023 (per BlackRock's 2025 Global Family Office Survey), reflecting a structural shift toward non-traditional investments as a core portfolio component.
- • ESG principles remain a near-universal priority, with 99% of family offices identifying ESG as a key investment consideration and 79% expecting ESG focus to increase further over the next three years.
Summary
Family offices are fundamentally shifting their investment posture toward higher-risk alternatives, driven by improved transparency and favorable market conditions. A comprehensive global study by Ocorian, conducted across 16 jurisdictions including the UK, US, UAE, Singapore, and Hong Kong, reveals that three-quarters of family offices plan to increase investment risk appetite in the coming 12 months. The survey encompasses family members and senior executives at offices managing $119.37 billion in aggregate wealth, providing statistically meaningful insight into institutional behavior at the ultra-high-net-worth level.
The appetite for increased risk is concentrated in alternative asset classes, particularly private equity. All surveyed family offices expect to expand PE allocations within the next two years, with approximately two-thirds targeting allocation increases between 25% and 50%. This aligns with broader portfolio data: BlackRock's 2025 Global Family Office Survey documents that alternative assets have grown to represent 42% of family office portfolios, a meaningful increase from 39% in the 2022–2023 period. This compositional shift underscores alternatives' transition from tactical diversifiers to strategic portfolio anchors.
Three primary factors explain this risk appetite expansion. First, enhanced transparency around alternative asset classes—cited by 61% of respondents—addresses a longstanding structural weakness in family office due diligence. Second, falling interest rates and the documented outperformance of AI and technology equities (mentioned by 48% of respondents) are creating urgency to capture upside in riskier assets. Third, geopolitical instability, noted by 46% of respondents, is paradoxically motivating portfolio repositioning as families view traditional defensive positions as insufficient hedges.
The risk-taking imperative coexists with sustained commitment to ESG principles. Nearly all family offices (99%) identify ESG as a fundamental investment consideration, and 79% expect this commitment to deepen over the next three years. This suggests that family offices are not abandoning governance standards in pursuit of returns; rather, they are seeking higher-yielding alternative vehicles that simultaneously meet ESG criteria. Risk management infrastructure remains a concern, with published research indicating that only approximately one-third of family offices holistically monitor risk across asset classes, signaling potential governance gaps despite stated appetite for increased exposure.
The appetite for increased risk is concentrated in alternative asset classes, particularly private equity. All surveyed family offices expect to expand PE allocations within the next two years, with approximately two-thirds targeting allocation increases between 25% and 50%. This aligns with broader portfolio data: BlackRock's 2025 Global Family Office Survey documents that alternative assets have grown to represent 42% of family office portfolios, a meaningful increase from 39% in the 2022–2023 period. This compositional shift underscores alternatives' transition from tactical diversifiers to strategic portfolio anchors.
Three primary factors explain this risk appetite expansion. First, enhanced transparency around alternative asset classes—cited by 61% of respondents—addresses a longstanding structural weakness in family office due diligence. Second, falling interest rates and the documented outperformance of AI and technology equities (mentioned by 48% of respondents) are creating urgency to capture upside in riskier assets. Third, geopolitical instability, noted by 46% of respondents, is paradoxically motivating portfolio repositioning as families view traditional defensive positions as insufficient hedges.
The risk-taking imperative coexists with sustained commitment to ESG principles. Nearly all family offices (99%) identify ESG as a fundamental investment consideration, and 79% expect this commitment to deepen over the next three years. This suggests that family offices are not abandoning governance standards in pursuit of returns; rather, they are seeking higher-yielding alternative vehicles that simultaneously meet ESG criteria. Risk management infrastructure remains a concern, with published research indicating that only approximately one-third of family offices holistically monitor risk across asset classes, signaling potential governance gaps despite stated appetite for increased exposure.
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