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The BlackRock 2025 Global Family Office Survey reveals a significant trend: private credit has emerged as the top investment choice for family offices seeking diversification amidst heightened geopolitical concerns.
Here’s a breakdown of the key takeaways from the survey, which polled 175 single-family offices collectively overseeing over $320 billion in assets:
* Geopolitical Uncertainty Driving Allocation: Geopolitical uncertainty is the most significant concern for family offices (84% of respondents), heavily influencing their capital allocation decisions. This concern has led to a negative sentiment about the global outlook for the first time since the survey began in 2020.
* Shift to Alternatives: Alternative assets are becoming increasingly important in family office portfolios, now making up 42% of their holdings, up from 39% in BlackRock’s previous survey (2022-2023). This indicates a strategic shift away from traditional asset classes.
* Private Credit and Infrastructure are Favorites: Looking ahead, private credit and infrastructure are the most favored alternative assets. Nearly one-third (32%) of family offices intend to increase their allocations to private credit, marking the highest figure for any alternative asset class. Infrastructure follows closely at 30%.
* Risk-Management Mode: Family offices are primarily in a risk-management mode, with over two-thirds (68%) focused on increasing diversification. Nearly half (47%) are actively seeking a variety of return sources, including illiquid alternatives, ex-US equities, liquid alternatives, and cash.
* Desire for Idiosyncratic Returns: The move towards private credit and other alternatives suggests a search for idiosyncratic sources of return – investments whose performance is less correlated with broader market movements. This is a common motivation for wealthy investors seeking to protect and grow capital in volatile environments.
* Addressing Illiquidity and Complexity: While private credit is illiquid and complex, family offices, with their sophisticated investment teams and long-term horizons, are generally better equipped to manage these characteristics than individual retail investors in a 401(k). They have the resources for extensive due diligence and can absorb the long lock-up periods.
* Challenges in Private Markets: Despite the interest, the survey also highlighted challenges. Notably, high fees in private markets were cited by 72% of respondents as a significant concern, a notable increase from 40% in the previous survey.
In essence, BlackRock’s findings illustrate that wealthy family offices are actively navigating a complex global landscape by strategically allocating to private credit. This move is driven by a strong desire for diversification and a search for more resilient, less correlated sources of return in the face of ongoing geopolitical instability.

Video courtesy of Eurex

Video courtesy of Eurex