BlackRock: Family Office Allocations to Alts on the Rise
Family offices are increasingly seeking diversification with a focus on alternatives, especially in private markets, according to a BlackRock study.
The majority of family offices (68 percent) are focused on increasing diversification with nearly half (47 percent) adding sources of returns including illiquid and liquid alternatives, equities outside of the US and cash, according to BlackRock’s recently launched 2025 Global Family Office Survey.
Geopolitical uncertainty was cited as a point of focus and a critical factor for asset allocation decisions, as agreed by 84 percent of respondents.
Private Credit and Infrastructure
Alternatives now make up 42 percent of portfolios, up from 39 percent in the global asset manager’s 2022-2023 survey. Private credit was the leading alternative asset class in which family offices sought to increase allocations (32 percent).
Infrastructure (30 percent) was also a top area for adding allocations with 75 percent of respondents feeling positive about its prospects. Within the asset class, family offices intend to increase allocations to both opportunistic (54 percent) and value-add strategies (51 percent) driven by a combination of higher return potential, tailwinds and flexibility.
Liquid Alternatives in Asia
In addition to private credit, a significant portion of family offices in Asia were also looking to increase exposure to liquid alternatives as a fundamental building block within their portfolios, according to Hiro Shimizu, deputy head of APAC and head of APAC institutional business at BlackRock.
«Family offices in Asia Pacific are prioritizing diversification and are proactively looking to increase resilience in their portfolios, whilst taking advantage of potential opportunities in today’s markets,» Shimizu said.
