- Nearly 70% of $1B+ family offices plan to increase private equity allocations in 2025.
- Crypto is gaining traction, with 74% of offices now exploring or investing in digital assets.
- Art, watches, and sports teams are rising in popularity as inflation hedges.
- Staffing challenges are leading more offices to seek co-investments and outside expertise.
Private Capital Takes Center Stage
According to Investment News, single family offices (SFOs) are rethinking their investment strategies. A new survey from BNY Wealth shows a clear shift toward private markets.
In fact, 69% of firms managing over $1B intend to grow their private equity holdings this year. Moreover, there has been a 34% increase in professionals expanding private equity exposure over the past 12 months.
Direct investing is also gaining steam. Two-thirds of SFOs expect to complete six or more direct deals in the year ahead. This move offers greater control and the potential for stronger returns.
Co-Investing Rises—But Talent Is a Concern
Co-investments are becoming more popular. However, this trend is partly driven by limited in-house capacity.
Many offices, especially in the US, are understaffed. As a result, they’re turning to external advisors to fill the gap. Talent acquisition and retention have moved to the top of the agenda.
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Crypto Is No Longer Fringe
Digital assets have gone mainstream. Today, 74% of SFOs are either investing in or exploring cryptocurrencies. That’s up 21 percentage points from last year.
Even more striking, 86% of $1B+ SFOs are more open to crypto since the 2024 US presidential election. Political shifts appear to be boosting confidence in the sector.
Collectibles Offer More Than Prestige
One in three family offices is now investing in collectibles. This includes art, rare watches, and even sports teams.
These assets serve as inflation hedges and uncorrelated returns. In addition, recent policy changes are making these markets more accessible. For example, US sports leagues have relaxed rules on private equity investment.
AI Transforms Operations
Artificial intelligence is a growing focus—not just as an investment, but as an internal tool.
SFOs are using AI for data analytics, portfolio monitoring, and risk management. Over the next five years, AI is expected to reshape how many offices operate.
Risk Remains a Top Priority
Inflation is still the leading concern, followed by geopolitics and cybersecurity. Consequently, more SFOs are returning to real estate and hard assets.
They’re also adopting tax-managed equity strategies to improve after-tax returns. US-based offices are especially focused on tax efficiency amid changing policy landscapes.
Outlook: Diversified and Digital
The overall mood is optimistic. SFOs are evolving to meet the changing needs of wealthy families.
They’re expanding into crypto, collectibles, and co-investments. At the same time, they’re building leaner, smarter operations with the help of AI and external talent.
In short, the traditional family office model is being rewritten. And this shift likely signals how broader high-net-worth strategies will evolve in the years ahead.
