Private equity is rising to the top of the agenda for large family offices seeking to expand their private market allocations, according to new findings from BNY Wealth.
A global survey of 282 family offices revealed that PE strategies—especially growth equity and buyouts—are the preferred route for family offices managing over $1 billion in assets. Two-thirds of this cohort said they intend to increase allocations to private equity over the coming year, marking a near 70% jump from last year’s responses.
Only a small minority (7%) plan to reduce their exposure to private equity, signalling strong confidence in the asset class. According to BNY Wealth CIO Sinead Colton Grant, this enthusiasm stands in contrast to some institutional investors, such as public pension funds, which are pulling back.
“We’re not seeing any retreat from private assets among family offices,” said Colton Grant. “In fact, many are doubling down. They understand that market dynamics have shifted, and greater private asset exposure is needed to fully participate in economic growth.”
Family offices below the $1 billion threshold are also leaning in—over 50% said they expect to boost PE allocations, up roughly 15% from last year.
Despite a slow exit environment and lower distributions from funds, family offices appear unfazed. Many have access to alternative income streams, such as operating businesses or unused capital reserves, allowing them to maintain long-term investment timelines.
“Family offices typically enjoy more flexibility than traditional institutions,” Colton Grant explained. “Their investment horizon often spans multiple generations, making them ideal candidates for longer-dated, illiquid assets that come with an illiquidity premium.”
The appeal of direct investing is also growing. Nearly two-thirds of respondents plan to make six or more direct private equity investments in the coming year.
To fund this shift, many family offices are reducing exposure to public equities, cash, hedge funds, and fixed income—asset classes where more respondents are planning to cut rather than increase allocations.
Growth equity is the clear front-runner, with about half of family offices targeting it as a priority. Buyout strategies follow, with around 10% of respondents naming them as a focus. Interest in growth equity was particularly strong among non-U.S. family offices, with a 73% increase over the past year. Much of that momentum appears linked to rising interest in AI-related investments.
“AI is a major theme—not just as a portfolio opportunity, but as a tool to improve the operations of the family office itself,” said Colton Grant.
Venture capital, by comparison, drew significantly less enthusiasm, with only one in three family offices planning to raise exposure. Private credit also lost steam, falling out of favour after topping last year’s priority list. According to Colton Grant, that may reflect a wave of private credit allocations already made in the previous cycle, with PE now seen as the more compelling forward opportunity.
While a recent UBS Global Family Office Report showed private credit leading private equity in recent allocations, this latest data suggests that the pendulum may be swinging back.
