The need to diversify investment holdings is driving increased exposure to alternative assets among family offices, new global research from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows.
Ocorian’s study among family members, senior family office employees and intermediaries working for family offices with total wealth of USD68.26 billion found fund managers plan to increase their exposure to all major alternative asset classes with none planning to reduce their exposure.
Infrastructure is likely to see the biggest increases in allocations over the next two years – almost two-thirds (64 per cent) of family office investment managers expect to increase allocations by between 25 per cent and 50 per cent over the next two years. Just over a fifth (22 per cent) plan similar increases in real estate while a third (32 per cent) expect to boost allocations to private debt by a similar range. Around 21 per cent expect to do the same for private equity.
The diversification benefits of alternative assets was identified as the key reason for increasing allocations ahead of the increased transparency of the asset class. The ability of some alternative assets classes, such as infrastructure, to provide an income was rated the third most important benefit of investing in alternatives.
Recent strong performance was ranked fourth in the attractions of investing in alternatives for family office fund managers, ahead of greater choice in the sector which was ranked fifth and the ability of some alternative asset classes to provide protection against inflation at sixth.
Simona Watkis – Head of Private Client – Cayman, says: “We’re seeing a clear acceleration in the shift toward alternative investments across both mature and emerging family office markets. In the Caribbean and Latin America, family offices are increasingly adopting global diversification strategies while still anchored in regional opportunities. The Cayman Islands, long regarded as a premier jurisdiction for sophisticated family office structuring, continues to attract families looking for stability, innovation, and cross-border solutions. Likewise, our clients in Asia are seeking greater transparency, control, and performance all of which alternative assets are well-positioned to deliver.”
Vince Calcagno, Head of US Growth for Ocorian, says: “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. As the complexity of these investments increases, so too does the need for sophisticated solutions, especially outsourced CFO, 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.”
