Family offices are increasingly turning to infrastructure investments for diversification, stability, and long-term value creation across generations. Global infrastructure assets hit a record $1.22 trillion at the end of 2024, growing 12.4% year-on-year — a clear sign that investors are prioritising tangible, essential assets amid market volatility.
Infrastructure’s appeal lies in its foundational role in the economy, spanning transport, utilities, energy, and water, while also encompassing fast-growing areas such as renewable energy and digital infrastructure supporting the AI economy.
“The return is relatively lower than something that’s got a little higher risk to it. The tradeoff, of course, is that long duration, high asset value,” notes Zachary Levenick of The Holdsworth Group.
Even with deal volumes falling by 8% in 2024, the sector remains resilient — an attractive trait for long-term investors such as family offices.
A flexible, diverse asset class
A BlackRock report found that 30% of family offices plan to raise their infrastructure allocations in 2025–2026, just behind private credit. The sector offers multiple entry points, from public securities and private transactions to structured finance and leasing.
For example, DCA Family Office focuses on aircraft leasing — an asset class offering returns comparable to private credit with added tax advantages.
“It has the stability of infrastructure and some sort of tax efficiency,” says Kholt Mulderrig, DCA’s Managing Director.
While some areas, such as data centres, are becoming crowded, adjacent opportunities remain strong. As Mulderrig puts it:
“We can certainly take a bet that anybody using a data centre will need the energy to run it.”
Balancing return, risk, and preservation
Infrastructure’s diversification benefits are among its strongest draws. A recent Ocorian survey found that 64% of family office managers plan to increase infrastructure allocations by 25–50% over the next two years, primarily for diversification.
“For many families, it’s about wealth preservation and ensuring what they’ve built endures,” Mulderrig says.
“Infrastructure fits that goal perfectly — it’s a good derisker in uncertain times.”
Still, the asset class isn’t without challenges. Illiquidity is a factor, though family offices are well-positioned to handle it due to their longer investment horizons. As Roland Kastoun of PwC explains,
“They can accept more of the illiquid premium because they don’t have to return cash to outside investors.”
Physical asset exposure introduces other considerations, including valuation, depreciation, and tenant reliability — especially for assets like data centres. Overreliance on a single tenant can increase vulnerability if that client’s business model changes.
Additionally, geopolitical and regulatory shifts can impact returns, underscoring the need for country-specific risk assessments and policy awareness.
How family offices approach infrastructure
Infrastructure offers several strategic paths — from income generation and inflation protection to credit-focused yield. Family offices are structuring their allocations across core, value-add, and opportunistic strategies to balance stability and growth potential.
BlackRock’s data shows 54% of family offices favour opportunistic strategies and 51% value-add, while 40% prefer core or core-plus.
Mulderrig adds that the sector’s tangible, multigenerational nature helps unite family members around shared goals:
“You may not be able to get your grandfather to understand bitcoin, but you can get him to understand what a rail or a barge is.”
A long-term proof point
The outlook for infrastructure remains strong as global demand grows for energy transition, logistics, and digital assets. With more family offices reaching the scale needed to participate directly, infrastructure is emerging as a core allocation within diversified portfolios.
“We haven’t yet seen a 2008-style crisis since infrastructure matured into what it is today,” Mulderrig concludes.
“A deep recession will be the real proof point — showing whether it stands as the ballast it’s meant to be.”
