Family Offices Fueling Surge in Private market Investments
In a meaningful shift in global investment trends, family offices are dramatically increasing their allocations to private markets. This surge, encompassing areas like direct lending and data centers, reflects a growing confidence in alternative assets for long-term wealth preservation and growth.
Data reveals a striking 524% increase in family offices with private market allocations since 2016.This expansion, from 651 entities to 4,067, significantly outpaces the growth seen in wealth management firms (410%) and endowments/foundations (81%).
Private Market Growth Accelerates
The trend has seen notable acceleration in recent years, with private market allocations growing by nearly 21% in 2023 and approximately 26% in 2024. The first half of 2025 alone witnessed an 8% rise in family offices engaging with these less liquid investment avenues.
Armando Senra, who oversees BlackRock’s institutional business in the Americas, noted that this family office activity mirrors broader investor interest in private credit and infrastructure. A recent BlackRock survey indicated that almost a third of single-family offices plan to boost their investments in these sectors between 2025 and 2026.
The Allure of long-Term, Stable Returns
Jonathan Flack, a leader in Deloitte’s U.S.and global family office practice, attributes this shift to the substantial wealth family offices now manage. By Deloitte’s estimate,family offices commanded a combined $3.1 trillion in 2024, a 63% leap from 2019. This considerable capital allows them to engage in illiquid private investments.
Family offices, known for their multi-generational investment horizons, find private markets especially appealing. They seek more stable growth environments than the often-volatile public markets, aligning with their long-term strategic objectives.
“Private markets allow the families to invest longer term in a more stable growth habitat as compared to the public markets which have proven to be more volatile over the same period,” Flack explained.
| Year | Family Offices Allocating to Private Markets | Growth Rate (YoY) |
|---|---|---|
| 2016 | 651 | N/A |
| 2023 | ~4,000+ | ~21% |
| 2024 | ~4,067 | ~26% |
| H1 2025 | (Continued Growth) | ~8% |
Strategic Shifts in Asset Allocation
Despite the overall upward trend, family offices are becoming more discerning about specific private offerings. A May survey by UBS indicated that while private debt holdings are expected to increase, private equity investments might be scaled back in favor of developed market equities for 2025. This trend was particularly noted among U.S. family offices.
however, looking ahead to their five-year plans, a majority of family offices still intend to increase, rather than decrease, their allocations to private equity and other private assets, signaling a robust long-term commitment.
Did You Know? The total assets managed by family offices reached an estimated $3.1 trillion in 2024,showcasing their significant influence in global finance.
Pro Tip: For investors considering private markets, understanding the illiquidity and long-term commitment required is crucial. Diversification within private assets is also key to managing risk.
What are your thoughts on the increasing shift towards private markets? Share your insights in the comments below!
How do you see family offices balancing private and public market investments in the coming years?
Evergreen Insights: The Enduring Appeal of Private Markets
The strategic pivot by family offices towards private markets is not merely a fleeting trend but a fundamental evolution in wealth management. For generations, family offices have been built on the principle of long-term value creation and capital preservation. Private markets, characterized by direct ownership, bespoke structures, and less correlation with public market volatility, offer compelling advantages.
These include access to unique growth opportunities, the ability to influence company strategy through direct involvement, and the potential for higher risk-adjusted returns over extended periods. While public markets provide liquidity and transparency, they can also be susceptible to rapid sentiment shifts and short-term performance pressures. Private markets, conversely, allow investors to ride out market cycles, benefiting from patient capital and fundamental business progress.
Key sectors like private credit provide essential financing for businesses, offering attractive yields in a yield-starved environment.Infrastructure investments, such as data centers, toll roads, and renewable energy projects, offer stable, inflation-linked cash flows, making them highly desirable for long-term capital deployment.
As wealth continues to concentrate, the sophisticated strategies employed by family offices often set the pace for institutional investors. Their increasing comfort and expertise in navigating the complexities of private markets signal a maturing asset class that is becoming increasingly accessible and integral to diversified investment portfolios.
Frequently Asked Questions About Family Office Investments
What are family offices increasingly investing in?
Family offices are significantly increasing their allocations to private markets, including direct lending and data centers.
How has family office allocation to private markets changed?
The number of family offices allocating to private markets has surged by 524% as 2016, from 651 to 4,067.
Why are family offices favoring private markets?
family offices are prioritizing private markets for their perceived stability and potential for long-term growth, contrasting with the volatility of public markets.
What specific private assets are attracting family offices?
Private credit and infrastructure are key areas of interest, with many family offices planning to increase their exposure to these sectors.
How much do family offices manage in assets?
As of 2024, family offices managed an estimated $3.1 trillion, a substantial increase from previous years.
What are the primary benefits of private market investments for family offices?
The primary benefits include access to unique growth opportunities, potential for stable growth environments, and the ability to invest with a long-term, multi-generational perspective.
Are family offices reducing their private equity investments?
Some recent surveys indicate a potential trimming of private equity bets in favor of other assets like developed market equities, though overall private asset allocations are still increasing.
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