Key Takeaways
- • BlackRock's annual Global Family Office Survey finds 68% of global family offices scrambling to diversify assets, with geopolitical uncertainty cited as the most important issue by 84% of respondents.
- • Alternatives now make up 42% of single-family office portfolios, up from 39% in 2022, with private credit and infrastructure the most-favored strategies.
- • 32% of family offices plan to increase private credit allocations and 30% plan to raise infrastructure allocations in 2025-26; 75% feel positive about infrastructure prospects.
- • Sixty percent of family offices are pessimistic about the global outlook, with confidence further shaken by new U.S. tariffs, according to BlackRock's Armando Senra.
- • Of the 175 single-family offices surveyed, which collectively hold $320 billion in assets, 22% use or would consider an outsourced CIO, and most cite expertise gaps in private-market analytics (75%), deal-sourcing (63%) and reporting (57%).
Summary
Geopolitical uncertainty is pushing family offices out of U.S. equities and into cash and liquid alternatives, according to BlackRock's annual Global Family Office Survey, as reported by ai-cio.com. The survey describes global family offices as being in "risk-management mode," with 68% reporting efforts to diversify their assets.
Geopolitical concerns dominate allocation decisions: 84% of respondents said geopolitical uncertainty is the most important issue facing them and a critical factor in capital allocation. Alternatives are gaining share, rising to 42% of single-family office portfolios from 39% in 2022. Private credit and infrastructure are the most-favored alternatives, with 32% of family offices planning to increase private credit exposure and 30% intending to raise infrastructure allocations in 2025-26. Three-quarters of respondents feel positive about infrastructure's prospects.
BlackRock's head of institutional business in the Americas, Armando Senra, said 60% of family offices are pessimistic about the global outlook and that new U.S. tariffs have further eroded confidence. He said family offices are "prioritizing diversification, liquidity, and structural reassessment of risk as they build resilience in their investment portfolios."
The 175 single-family offices surveyed collectively manage $320 billion. Many want to work with external partners, particularly in private markets, citing internal expertise gaps in private-market analytics (75%), deal-sourcing (63%) and reporting (57%). About 22% already use an outsourced chief investment officer or would consider one. A majority would consider using artificial intelligence for tasks ranging from risk management to cash-flow modelling. Respondents also show AI-related interest: 45% are more likely to invest in technology firms building AI solutions, 51% are interested in opportunities expected to benefit from AI growth, and 33% plan to deploy AI internally to improve investing processes.
The article originally appeared in Financial Standard, a sister publication of CIO, both owned by ISS STOXX.
Geopolitical concerns dominate allocation decisions: 84% of respondents said geopolitical uncertainty is the most important issue facing them and a critical factor in capital allocation. Alternatives are gaining share, rising to 42% of single-family office portfolios from 39% in 2022. Private credit and infrastructure are the most-favored alternatives, with 32% of family offices planning to increase private credit exposure and 30% intending to raise infrastructure allocations in 2025-26. Three-quarters of respondents feel positive about infrastructure's prospects.
BlackRock's head of institutional business in the Americas, Armando Senra, said 60% of family offices are pessimistic about the global outlook and that new U.S. tariffs have further eroded confidence. He said family offices are "prioritizing diversification, liquidity, and structural reassessment of risk as they build resilience in their investment portfolios."
The 175 single-family offices surveyed collectively manage $320 billion. Many want to work with external partners, particularly in private markets, citing internal expertise gaps in private-market analytics (75%), deal-sourcing (63%) and reporting (57%). About 22% already use an outsourced chief investment officer or would consider one. A majority would consider using artificial intelligence for tasks ranging from risk management to cash-flow modelling. Respondents also show AI-related interest: 45% are more likely to invest in technology firms building AI solutions, 51% are interested in opportunities expected to benefit from AI growth, and 33% plan to deploy AI internally to improve investing processes.
The article originally appeared in Financial Standard, a sister publication of CIO, both owned by ISS STOXX.
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