Family offices turn to private markets, allocations up 500% since 2016
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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.
As the rich of the world became enriched, investment companies have doubled private assets such as direct loans and data centers.
The number of family offices that allocated to private markets has increased by 524% since 2016 and rose from 651 to 4,067 per data. This increase exceeds the assets allocated by the Alternative Investment Data Platform of Blackrock (410%) and donations and foundations (81%) to private markets.
This growth has been marked in recent years, increasing approximately 26% in 2023 and about 26% in 2024. In the first half of 2025, the number of family offices exposed to private markets increased by 8%.
Armando Senra, who pioneered Blackrock’s corporate business in the United States, said that family office activities reflect the wider interest from investors to private credit and infrastructure. A Blackrock research in the last spring reported that about one -third of its single family offices plans to invest more in private loans and infrastructure from 2025 to 2026.
Jonathan Flack from the PWC said that most of this event can be attributed to CNBC family offices with much more reserves to manage. Deloitte’s estimated and family offices increased by 63% from 2019 to a combination of $ 3.1 trillion in 2024.
Flack said that family offices need less money less money, so that they may afford to make non -liquid special investments. According to Flack, the leader of the consulting giant’s US and Global Family Office application, private markets and private markets are known for their long -term mentality.
“Private markets allow families to invest in a more stable growth environment in a longer term than in public markets proven to be more variable in the same period.” He said.
However, family offices have become increasingly selective about special offers. A questionnaire conducted by UBS is planning to increase private debt assets of family offices, but certainly finalize private capital bets in favor of the developed market equity in 2025.
However, when asked for five -year plans, more family office aimed at increasing more family offices rather than reducing their allocation to private capital and other private assets.
