Family Fortunes: Investing as a Unit

In a world of shifting markets and evolving risks, family offices must come together to navigate opportunities with vision and resilience. This guide explores practical strategies for aligning capital and values.

Market Overview and Strategic Positioning

Family offices in 2025 are operating with confidence in enduring fundamentals, even as geopolitical tensions and economic uncertainty persist. Despite concerns over conflict and instability, many families view volatility as a chance to acquire high-quality assets at attractive prices.

These multi-generational investors leverage their inherent flexibility and enduring capital to pursue long-term growth. By maintaining discipline and focusing on innovation sectors—such as artificial intelligence, healthcare breakthroughs, and sustainable energy—they harness market trends rather than reactively chasing short-lived rallies.

Asset Allocation Trends

The modern family office portfolio remains anchored by three core asset classes, providing a stable foundation while allowing for strategic shifts.

Alongside these pillars, families are exploring growing opportunities to diversify returns and manage risk.

Increased exposure to private equity remains a top priority, as two-thirds of offices plan to boost allocations over the next year. Public markets recover selectively, with tech stocks drawing capital due to advancements in artificial intelligence. Real estate continues to offer reliable cash flow and serves as a hedge against inflation.

Emerging asset classes offer new avenues to capture growth:

• Private Equity – Growth Equity: 73% rise in interest for innovation sectors
• Private Credit: Seeking yield and downside protection amid higher rates
• Digital Assets: 33% of family offices now hold cryptocurrencies
• Real Assets: 50% increase in commodities and natural resources allocations
• Infrastructure: Investments in data centers, logistics, and medical facilities

Direct Investing and Co-Investment Strategies

Nearly two-thirds of family offices anticipate making six or more direct investments this year, reflecting a shift toward hands-on engagement. This approach demands rigorous due diligence and a clear understanding of partner alignment.

Deep relationships and alignment of interests and values are central to success. Families should establish transparent governance frameworks, co-investment guidelines, and contingency plans to address strategic frictions early. Leveraging AI for deal sourcing and risk analysis can enhance decision-making and uncover overlooked opportunities.

Thematic and Impact Investing

Thematic strategies enable families to channel capital into long-term global shifts—such as decarbonization, aging populations, and digital transformation—while aligning with their core convictions. A systematic process includes identifying structural trends, assessing cyclicality, and evaluating liquidity constraints.

Robust thematic investment frameworks involve multi-manager approaches that blend niche specialists with diversified vehicles. Impact investing, particularly for next-generation family members, can merge financial returns with measurable environmental or social outcomes. Establish impact metrics at the outset to ensure accountability and continuous improvement.

Risk Management and Diversification

As tail risks grow, families must adopt structured risk mitigation strategies that go beyond conventional asset allocation. Proactive hedging and scenario planning help prepare for extreme events, from geopolitical shocks to sudden policy shifts.

• Geographic diversification across regions and custodial jurisdictions
• Allocations to gold, U.S. Treasuries, and other hard assets
• Use of digital assets alongside traditional hedges for unconventional protection

Family Office Priorities and Operational Focus

Successful family offices balance wealth creation with legacy stewardship. In 2025, priorities include expanding investment offerings, attracting top talent, and codifying family values into formal governance documents.

• Expanding into new asset classes like cryptocurrencies and private credit
• Talent acquisition and retention, with a focus on cross-disciplinary expertise
• Next generation planning, including education and mentorship programs
• Upgrading technology platforms to streamline reporting and analytics
• Tax and estate planning to preserve wealth across generations

Families are articulating their vision through constitutions and council structures, ensuring that each generation understands and upholds shared values. Political intelligence and global mobility consulting are increasingly integrated into advisory services to navigate complex residency and citizenship considerations.

By uniting around common goals—whether it’s securing sustainable returns, advancing social causes, or preserving capital for future generations—family offices can transform volatility into opportunity. Through disciplined processes, collective wisdom, and a long-term perspective, they will continue to shape the landscape of global finance for decades to come.