Family offices increasing private credit and infrastructure investments, diversifying portfolios, optimistic about asset classes

From CNBC: 2025-06-26 09:15:00

Ultra-rich investment firms are increasing allocations to alternative assets like real estate and venture capital, as reported by a BlackRock survey. Family offices are shifting 42% of their portfolios to alternatives, up 3% from last year. Private credit and infrastructure are the top asset classes for investment, according to 175 family offices surveyed.

Despite positive momentum, 12% of respondents plan to decrease allocations to private equity. However, 30% are optimistic about the asset class this year. BlackRock’s Armando Senra noted that family offices are diversifying their investments in private markets, favoring private credit and infrastructure for lower risk and AI investment opportunities.

Liquidity concerns and the appeal of lower-risk infrastructure investments are driving family offices to diversify their portfolios. Private credit is a popular choice, with 51% of respondents feeling optimistic, but concerns about quality and defaults remain. Special situation debt and direct lending are top choices for private credit, offering more investor protection than private equity.

Caution is advised as private credit gains popularity, with 62% of respondents favoring special situation debt for investor protection. Despite concerns about defaults, private credit can offer stability and returns for family offices. Diversification remains a key strategy for ultra-rich investors looking to navigate market uncertainties.



Read more at CNBC: Family offices double down on private credit and infrastructure