BlackRock’s 2025 Global Family Office Survey reveals that wealthy families are entering a period of heightened caution, with geopolitical uncertainty now cited as the top concern by 84% of respondents. This anxiety is influencing capital allocation decisions more than at any time since the survey began in 2020. With global tensions rising and market fragmentation accelerating, many family offices are reassessing risk and shifting into defensive mode.
According to the findings, a significant majority of family offices are focusing on increased diversification and accessing more idiosyncratic sources of return. Around 68% are broadening their portfolios, while nearly half (47%) are investing more in areas like illiquid alternatives, ex-U.S. equities, and cash holdings. The move reflects a broader desire to build resilience amid policy uncertainty and shifting market structures.
Allocations to private credit and infrastructure are growing rapidly, with alternatives now comprising 42% of the average family office portfolio, up from 39% just two years ago. Private credit is the standout segment, with 32% of offices planning to increase allocations—more than any other alternative class. Infrastructure is also gaining traction, with 75% of respondents optimistic about its role in providing stable income and portfolio diversification. Offices are especially drawn to opportunistic (54%) and value-add (51%) strategies that offer flexibility and potential upside in volatile conditions.
Many family offices are also acknowledging their internal limitations when it comes to navigating private markets. Over half reported gaps in deal sourcing (63%), reporting (57%), and analytics (75%). As a result, collaboration with external partners is on the rise. Roughly one in four offices have either engaged or are considering an Outsourced Chief Investment Officer (OCIO), and there is increasing reliance on third-party providers for both investment strategy and technology infrastructure.
The survey also captured family offices’ attitudes toward AI. While most respondents expressed interest in using AI for tasks like cash-flow modelling and risk analysis, few have implemented the technology internally. Instead, many are focusing on investing in external AI-driven ventures (45%) or opportunities expected to benefit from AI’s growth (51%), rather than directly integrating these tools into their operational workflows.
