Global family offices are eyeing an increase in allocations to major alternative asset classes over the next two years, with infrastructure assets to see the biggest gain, according to a new survey by Ocorian.
It found nearly two-thirds (64%) of family office investment managers said they expect to increase allocations to infrastructure assets between 25% and 50% over the next two years. Roughly a fifth said they’re planning similar increases in real estate (22%) and private equity (21%), while a third (32%) expect to beef up allocations to private debt by a similar range.
Among those planning a 50% to 75% increase over the next two years, most (19%) noted they’re planning to allocate to private debt, followed by infrastructure assets (14%), real estate (13%), and private debt (10%). Notably none said they were planning to keep their allocations to real estate, infrastructure, and private equity unchanged.
When asked, respondents cited diversification as a key reason for increasing allocations to alternatives, increased transparency of the asset class, and the ability to gain regular income-generating assets. Family office fund managers also highlighted the recent strong performance of these investments, along with greater choice in the sector and the inflation protection that some of these assets provide.
“Family offices, as they’ve matured over the past two decades, are behaving more like institutional investors than ever before — seeking data-driven, operationally efficient ways to gain exposure to and track alternatives,” said Vince Calcagno, Ocorian’s head of U.S. growth, in a press release.
“As the complexity of these investments increases, so too does the need for sophisticated solutions, especially outsourced [chief financial officers], that can offer the financial clarity and control families require. Whether it’s infrastructure, private credit, or real estate, the key is supporting families with the right technology and knowledge to evaluate performance, manage risk, and plan strategically across generations.”
