Citi Wealth has released its 2025 Global Family Office Report, offering a detailed look at how some of the world’s largest private wealth managers are navigating today’s challenges. Compiled by Citi Wealth’s Global Family Office Group, which serves more than 1,800 offices worldwide, the report examines investment sentiment, portfolio activity, and operational priorities amid geopolitical strains, shifting trade policies, and accelerating technological change.
Based on a record 346 responses from family offices across 45 countries, the survey—conducted in June and July 2025—shows how strategies have adapted in the wake of recent U.S. tariff decisions.
Hannes Hofmann, head of Citi Wealth’s Global Family Office Group, noted the growing dynamism in the Middle East, where a high share of first-generation families continue to control their fortunes and the UAE is attracting new inflows of wealthy individuals. “These are exciting times for family offices worldwide,” Hofmann said. “Clients are adapting to rising expectations, and Citi is well placed to help them seize opportunities and meet ambitious goals.”
Key insights from the 2025 report
- Generational wealth control: EMEA recorded the highest share of first-generation families (56%), while Asia Pacific stood out for second-generation control (43%), showing signs of market maturity.
- Geopolitical concerns: Trade disputes (60%), U.S.-China relations (43%), and inflation (37%) were cited as top risks, prompting renewed attention to jurisdictional strategies.
- Investment allocations: Most offices maintained steady allocations, but where changes occurred, private equity drew the strongest interest.
- Market optimism: Despite uncertainty, respondents remained positive, citing potential U.S. deregulation, interest rate cuts, and AI-driven growth.
- Managing volatility: 39% responded to tariff shocks with more active management, hedging, or reallocating to defensive markets.
- Direct deals: 70% of family offices reported doing direct investments, with 40% stepping up activity over the past year.
- Professionalisation gaps: Weaknesses remain in areas like risk management, cybersecurity, and succession planning.
- Outsourcing: More families are considering external providers, though decision-making largely stays internal.
- AI adoption: Use of AI tools doubled year-on-year, particularly for investment analytics and operational automation.
Nearly all respondents expect portfolio gains over the next year, with close to 40% forecasting returns of 10% or more, though asset-class sentiment was more muted compared with 2024.
Dawn Nordberg, Head of Integrated Client Engagement at Citi Wealth, stressed the growing appetite for direct investing. “Family offices want access to transformative technologies and attractively priced opportunities. Our dedicated team works with Citi’s investment bank to connect them with private capital raises, asset sales, and sector-specific insights.”
The report also underscored persistent risk exposure. While 70% highlighted investment risks, operational (37%) and family-related (33%) risks were also significant. Around half admitted they were not fully prepared to manage cybersecurity, personal security, or geopolitical threats.
According to Alexandre Monnier, Head of Global Family Office Advisory, the findings point to progress but also gaps. “Family offices are advancing in their investment capabilities, but must strengthen risk management, succession planning, and non-investment services to ensure long-term resilience.”
