Key Takeaways
- • A global survey of 200 family office industry figures overseeing $68.26 billion in AuM reveals aggressive reallocation toward alternatives, with 46% planning to increase private equity allocations by 10–25% over the next two years.
- • Infrastructure emerges as the standout alternative asset class, with 64% of respondents expecting to raise infrastructure exposure by 25–50% in the next two years—significantly outpacing private equity appetite.
- • Survey respondents span 13 major financial jurisdictions including the UK, UAE, Singapore, Switzerland, Hong Kong, and South Africa, indicating broad geographic consensus on the alternative investment shift.
- • The pivot toward alternatives is driven by a decades-long shrinkage in listed company populations since the 1990s, ultra-low interest rate regimes post-2008 that eroded equity yields, and sustained market volatility surrounding the pandemic.
- • Simona Watkis, head of private client for Cayman at Ocorian, characterized the shift as "a clear acceleration in the shift toward alternative investments across both mature and emerging family office markets."
Summary
A comprehensive survey of the family office sector reveals a pronounced and deliberate shift toward alternative asset classes, with infrastructure positioning itself as the preferred investment vehicle. The study, commissioned by Ocorian and conducted by research firm PureProfile in June 2025, polled 200 family office professionals globally who collectively oversee $68.26 billion in assets under management.
The data demonstrates stark differences in appetite across alternative categories. While 46% of respondents intend to increase private equity allocations by 10–25% over the next two years, infrastructure commands substantially greater conviction: 64% expect to raise infrastructure exposure by 25–50% in the same period. This disparity suggests family offices view infrastructure as offering superior risk-adjusted returns or portfolio diversification benefits relative to traditional private equity exposure.
The geographic diversity of respondents—spanning the UK, United Arab Emirates, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius, Bahrain, Bermuda, Cayman Islands, British Virgin Islands, and Jersey—indicates the alternative investment trend transcends developed and emerging markets alike. This cross-border consensus strengthens the signal that the shift represents a structural realignment rather than a localized phenomenon.
Industry observers attribute the acceleration to multiple structural factors compounding over decades. The shrinkage of publicly listed companies globally since the 1990s has narrowed traditional equity opportunities. More significantly, the extended period of ultra-low interest rates following the 2008 financial crisis crushed yields on listed equities, forcing institutional investors to seek returns in private markets. Market volatility before and during the pandemic further reinforced the case for alternatives, as family offices sought less correlated assets to stabilize portfolio performance. According to Ocorian leadership, this trend reflects "a clear acceleration in the shift toward alternative investments across both mature and emerging family office markets," with consistent messaging across institutional surveys from UBS and BNY Wealth showing approximately two-thirds of family offices planning increased private equity allocations.
The preference for infrastructure specifically aligns with the asset class's structural characteristics: long-duration cash flows, inflation-hedging properties, and lower correlation to equity market cycles. For family offices with multi-decade investment horizons, infrastructure investments offer steady yield generation alongside capital appreciation—attributes increasingly valued in a low-rate, high-volatility environment.
The data demonstrates stark differences in appetite across alternative categories. While 46% of respondents intend to increase private equity allocations by 10–25% over the next two years, infrastructure commands substantially greater conviction: 64% expect to raise infrastructure exposure by 25–50% in the same period. This disparity suggests family offices view infrastructure as offering superior risk-adjusted returns or portfolio diversification benefits relative to traditional private equity exposure.
The geographic diversity of respondents—spanning the UK, United Arab Emirates, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius, Bahrain, Bermuda, Cayman Islands, British Virgin Islands, and Jersey—indicates the alternative investment trend transcends developed and emerging markets alike. This cross-border consensus strengthens the signal that the shift represents a structural realignment rather than a localized phenomenon.
Industry observers attribute the acceleration to multiple structural factors compounding over decades. The shrinkage of publicly listed companies globally since the 1990s has narrowed traditional equity opportunities. More significantly, the extended period of ultra-low interest rates following the 2008 financial crisis crushed yields on listed equities, forcing institutional investors to seek returns in private markets. Market volatility before and during the pandemic further reinforced the case for alternatives, as family offices sought less correlated assets to stabilize portfolio performance. According to Ocorian leadership, this trend reflects "a clear acceleration in the shift toward alternative investments across both mature and emerging family office markets," with consistent messaging across institutional surveys from UBS and BNY Wealth showing approximately two-thirds of family offices planning increased private equity allocations.
The preference for infrastructure specifically aligns with the asset class's structural characteristics: long-duration cash flows, inflation-hedging properties, and lower correlation to equity market cycles. For family offices with multi-decade investment horizons, infrastructure investments offer steady yield generation alongside capital appreciation—attributes increasingly valued in a low-rate, high-volatility environment.
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