Family offices double down on private credit and infrastructure

A version of this article first appeared in the CNBC’s Inside Wealth bulletin with Robert Frank, a weekly guide for high -valuable investors and consumer. Be a member To get future prints, directly to your box.

According to a new survey conducted by Blackrock, investment companies of ultra -rich are going to alternative assets such as real estate and venture capital. Family offices, a portfolio allocation of 42% to alternatives in recent months increases by 3 percent points compared to last year and makes significant changes in how to invest in this capital.

According to the survey, approximately one -third of the single -family offices (32%) planned to allocate it to a private loan this year. The second most popular class is the infrastructure and 30% of the participants are planning to invest more in the sector through debt or equity. The survey destroyed 175 family offices, which were supervised by more than $ 320 billion between 17 March and 19 May.

Although 12% of the participants plan to allocate to funds or direct investments, private capital is still positive acceleration. When asked about the expectations of the asset class this year, he said that 30% felt optimistic and 22% were unavoidable.

Armando Senra from Blackrock said that CNBC has generally invested more capital in private capital. However, they spread their bets when it comes to private markets, so the increasing market share of private credit and infrastructure.

Senra, who manages the corporate business of the asset manager in the United States, said, “The private capital continues to be the center of the portfolio.” “I think what you see is the desire to diversify for a variety of reasons.”

Liquidity is an important factor, since the slowdown in outputs means that private capital investors should wait longer for returns.

Senra also said the low -risk attractiveness of the infrastructure investment, which he said, “a significantly lower risk of private capital type”. The Blackrock questionnaire reported that the participants felt bull or optimistic about infrastructure, expressing only 5% pessimism.

The sector is also a way to invest in the explosion of artificial intelligence of family offices.

“AI has large infrastructure needs, de said Senra said that the demand for data centers has increased and its energy grills.

In May, Jeff Bezos’ family office supported a $ 155 million seed tour for Atlas data storage, a company that uses a DNA -style system to store data at a more efficient and lower cost.

As for the private loan, some family offices are careful against Hype. While 51% of the respondents said that they were optimistic or rise in special credit, 21% reported pessimistic or decrease attitudes. The spread of the capital to a private loan increased concerns about the quality of debtor companies and in case of a stagnation.

Senra said he was careful when an asset class increases in popularity.

“When you have enough class, I think you should allocate managers with experience in different market environments.” He said.

However, 62% of the participants supported a special case debt, which was usually reconstructed or expanded to companies facing stress. The second most preferred second special debt category has given direct loans. According to the report, a private loan can offer more investor protection than private capital.