Family Offices Increase Investment in Private Markets by Over 500% in Ten Years

As global affluence rises, wealthy individuals have increasingly turned to private investments, including areas like private credit and infrastructure.

Data from Preqin reveals a significant rise in family offices allocating funds to private markets, with numbers growing an astonishing 524% from 651 in 2016 to 4,067. This growth outpaces that of other entities like wealth management firms, which observed a 410% increase, and foundations, which saw an 81% rise in similar investment activities.

Significant Surge in Recent Years

In particular, the past few years have seen marked growth, with a notable 21% increase in 2023 and approximately 26% the following year. By mid-2025, there was an additional 8% rise in family offices investing in private markets.

According to Armando Senra from BlackRock, there is a broader investor trend towards private credit and infrastructure, with family offices deeply involved in this shift. A survey earlier this year indicated nearly one-third of single-family offices plan to escalate investments in private credit and infrastructure through 2026.

Factors Driving the Growth

Jonathan Flack from PwC noted that the substantial increase in assets managed by family offices is a significant factor, with a Deloitte study estimating a 63% rise in assets from 2019 to 2024.

Family offices, with their long-term investment horizon, find private markets attractive due to their reduced need for liquidity. Flack mentioned that these families can embrace investments that last for many years, aligning with their preference for stable growth environments compared to the volatility of public markets.

Future Investment Trends

Despite a trend towards being more discerning in their investments, family offices continue to show a strong preference for private opportunities. A UBS survey highlighted plans to increase holdings in private debt, with a shift towards developed market equities anticipated for 2025. Among U.S. family offices, this shift is expected to be pronounced.

However, over a five-year outlook, many family offices intend to boost their investments in private equity and other alternative assets.