Family Offices Boost Private Equity Allocations by 70%

Family offices are increasingly shifting their investment strategies, with a significant portion planning to boost their allocations to private equity funds this year. According to the "2025 Single Family Office Investment Insight Report" published by BNY Mellon Wealth Management, two-thirds of family offices managing over $1 billion in assets are set to increase their private equity investments. This marks a nearly 70% increase compared to the previous year.

This strategic shift is part of a broader trend where family offices are looking to diversify their portfolios beyond traditional stock investments. The report indicates that these institutions have allocated only about 19% of their investable assets to public equities, reflecting a 28% decrease from the previous year. This reduction in public equity holdings suggests a growing preference for alternative investments, including private equity and digital assets.

The move towards private equity and digital assets is driven by several factors. Private equity investments offer the potential for higher returns and greater control over the investment process. Digital assets, on the other hand, provide exposure to innovative technologies and the potential for significant growth. By reducing their reliance on public equities, family offices aim to achieve better risk-adjusted returns and capitalize on emerging opportunities in the market.

This trend is likely to continue as family offices seek to optimize their portfolios in response to changing market conditions and investment opportunities. The shift towards private equity and digital assets underscores the evolving nature of investment strategies and the increasing importance of alternative investments in the financial landscape.