Family office investors in 2025 are navigating a complex economic and geopolitical environment, maintaining resilience and optimism amid mounting uncertainty. A recent industry survey, representing the perspectives of 245 decision-makers across the Americas, EMEA, and APAC, highlights how family office leaders are adapting asset allocations, managing risk, and seeking strategic opportunities in an evolving investment landscape.Goldman-Sachs-family-office-investment-insights-report.pdf
Family Office Outlook for 2025
Despite elevated volatility and short-term uncertainty, family office investment convictions are remarkably steady. Portfolio decisions are grounded in long-term perspectives, allowing family offices to maintain exposure, act as first movers, and invest in themes aligned with both financial goals and core values. The survey reveals that 61% of family office respondents cite geopolitical conflict as a primary risk, followed by political instability and economic recession. Yet, asset allocations are broadly consistent with previous years, reflecting confidence in enduring investment fundamentals.
Asset Allocation: Where Family Offices Are Investing
Family offices allocate their portfolios with a strategic balance across public equities, alternatives, and cash. The average asset allocation for family offices in 2025 shows:
- Public Equities: The allocation has rebounded to 31 percent. Family offices frequently capitalize on market dislocations, especially within technology stocks that benefit from advancements in artificial intelligence.
- Private Equity: These investments remain a foundation, with a slight reduction in allocations globally. Among family offices in the Americas, private equity remains strongest at 25 percent, while allocations in EMEA and APAC trail behind. Recent upticks in IPO and M&A activity could signal a turnaround in private equity deployment.
- Alternatives: Family offices collectively allocate 42 percent to alternative investments such as private equity, real estate, hedge funds, and private credit. This approach demonstrates a willingness to tolerate illiquidity in exchange for higher return potential.
Yield-Driven Strategies: Private Credit, Real Estate, and Infrastructure
Family office interest in yield-producing assets reflects a response to inflation and interest rate volatility. Allocations to private credit have risen by one percentage point compared to previous years, with nearly three-quarters of family office respondents currently invested. In the real estate sector, 44 percent prefer direct investment in private real estate, which aligns with broader operational experience. Infrastructure investments are also rising as global trends fuel demand for digitization, logistics, and medical facilities.
Family Office Diversification and Tail Risk Management
Managing tail risk is a growing priority in 2025. While 35 percent of family offices in the Americas are not actively positioning portfolios for tail risk events, only 14 percent in EMEA and 12 percent in APAC take this stance. Popular risk mitigation strategies include geographic diversification in both investments and asset custody, increased allocations to gold, US Treasuries, and other hard assets. Family offices in the Middle East especially forecast higher gold allocations in response to geopolitical uncertainty.
Technology, AI, and Digital Assets
Technology leads sector allocations, with 58 percent of family offices planning to overweight this area in the coming year. Artificial intelligence adoption is advancing rapidly, 86 percent of respondents are investing in AI, and 51 percent are already using AI tools in their investment process. These tools drive data analysis, research, productivity, investment due diligence, and even idea generation. Many family offices also invest in secondary beneficiaries of AI-related growth, such as energy and industrials.
Digital assets are gaining traction in family office portfolios. While two-thirds are not yet invested, 33 percent own cryptocurrencies as of 2025, double the rate compared to four years ago. Interest is especially robust in the Asia-Pacific region, and digital assets are emerging as unconventional tail-risk hedges alongside gold and core fixed income positions. Most family offices access digital assets via direct spot purchases or listed products.
Geographic Allocation: A Family Office Global Perspective
The majority of family office portfolios remain anchored in US markets, regardless of where investors are based. Attributes such as technological innovation, capital market depth, and demographic momentum continue to support US equities. However, family office leaders outside the Americas are also heavily invested within local regions, 89 percent of EMEA offices favor the euro area, and 80 percent of APAC offices prioritize exposure to China. This regional focus allows family offices to capitalize on diverse economic cycles.
Looking Ahead: Allocation Intentions and Sector Focus
Family offices remain constructive about market opportunities. The largest portion of those considering changes anticipate increasing allocations to private equity, in line with sustained, programmatic commitments that outlast temporary market disruptions. Growth equity is particularly attractive, and recent trends suggest increased demand for capital as companies delay public listings. Conversely, about a third of family offices plan to decrease cash balances and deploy more capital into risk and yield assets. Private credit is another target for increased allocations, as family offices seek the continued yield pickup relative to traditional fixed income.
Thematic Sector Overweights
- Technology: 58 percent plan to be overweight, driven by AI and innovation.
- Industrials/Energy: One-quarter expect to increase allocations, in line with global demand to power AI infrastructure and green transitions.
- Healthcare and Real Assets: These areas benefit from demographic shifts and long-duration investment perspectives.
- Digital Assets: Growing, especially where regulatory environments support capital markets innovation.
Family Office Leadership and Operations
The survey reveals broad diversity among family office leaders—54 percent are original wealth creators, while second and third generations are increasingly involved in investment oversight. Most family offices run portfolios with fewer than five full-time employees, emphasizing agility and independent decision-making. Next-generation engagement is rising, positioning family offices to adapt to future trends and risks.
Frequently Asked Questions
What are the top risks facing family offices in 2025?
Geopolitical conflict, economic recession, political instability, and global tariff increases rank highest among family office concerns.
Are family offices embracing AI in investments?
Yes, most family offices are investing in AI and leveraging it for data analysis, research, and portfolio optimization.
How do family offices manage tail risk?
Strategies include geographic diversification, gold and hard asset allocations, increased liquidity, and selective crypto exposure.
Which asset classes will family offices target for growth?
Expect increased allocations to private equity, public equities, and private credit, with decreasing reliance on cash reserves.
Family office investors in 2025 continue to blend tradition with innovation, focusing on resilient asset allocation, proactive risk management, and sector leadership in AI and digital assets. Their disciplined approach and strategic agility remain a model for sophisticated wealth management professionals across the globe.