Portfolios with more tech, real estate and digital assets. Less private equity and cash

Listed equities returned to 2021 levels, while private equity declined due to weak exits. The most significant change concerns family offices in the Americas, with a 25% share in private equity compared to 22% in EMEA (Europe/Africa) and 15% in APAC (Asia/Pacific). However, this trend is already beginning to reverse, as plans for future allocations show. Meanwhile, allocations in private real estate & infrastructure and private credit have increased, highlighting the demand for current returns. Almost half of the respondents (44%) invest mainly in private real estate directly, leveraging their operational expertise, while for the other alternative asset classes they continue to rely mainly on asset managers.

So looking at the current asset allocation compared to the 2023 analysis, listed equities rise to 31% from 28% in 2023, alternatives are down from 44% to 42% with private equity down from 26% to 21%, private real estate & infrastructure up from 9% to 11%, private credit up slightly from 3 to 4% and hedge funds stable at 6%. fixed income rises one percentage point (from 10 to 11%), commodities and cash stable at 1% and 12% respectively

Confirming the willingness to embrace innovation and diversify into new sources of value creation, in addition to technology, family offices are increasingly active in areas such as digital assets, secondaries and sports. As for AI, more than half of the respondents (58%) expect to remain overexposed to technology in the next 12 months; 86% already invest in it and 51% use it in their investment processes, with an increasing focus on secondary beneficiaries.

Turning to digital assets: one third (33%) invest in cryptocurrencies (up from 26% in 2023), led by APAC where 39% consider future investments; 11% globally use cryptocurrencies for extreme risk management. 72% of family offices invest in secondary assets (funds of funds in alternative assets), which can offer access to more mature portfolios, shorter duration and greater transparency. Among the growing themes is sports: a theme with 25% of family offices already investing in this area and another 25% saying they are interested; 71% focus on the top teams of the major leagues, while 61% believe media and content will be the main driver of value in the future.

The durable capital of family offices allows them to invest in innovation. Moreover, they can move first when opportunities arise, stay invested during drawdowns and maintain a long-term horizon on unique assets and pursue investments that take a decade or more to mature, while remaining true to their family values.

Looking ahead, family offices expect to keep strategic allocations unchanged, making selective adjustments to balance prudence and opportunity: 39% expect to increase their allocation to private equity, continuing with ongoing programmatic commitments, albeit at a lower pace; 38% plan to increase exposure to listed equities, confident in long-term growth; 34% want to reduce cash and reinvest in risky assets; 26% aim to increase exposure to private credit, reflecting interest in yield and tailored financing solutions. 58% plan to remain overweight in the technology sector over the next 12 months. There is no shortage of those who are taking a position against tail risks, through geographical diversification, gold or other real assets, but the overall picture is one of stability.