Family offices beef up alternatives allocations

Family offices are bullish on alternatives as inflation, unpredictable central bank policies and geopolitical risks have seen traditional investment playbooks thrown out, according to experts.

- Matthew Wai

The 2025 Schroders Global Investor Insights Survey, which gathered responses from 90 family offices worldwide, shows most family offices are now focusing on a balance between defensive positioning and strategic growth, with 56% identifying that as their primary objective moving forward.

Schroders Australia head of private wealth Theone Star says she is seeing a shift in how family offices are constructing their portfolios, with many turning to alternative assets to build portfolio resilience.

She says that private assets, along with real estate and infrastructure investments, have become integral to achieving a balanced portfolio for family offices.

"Private assets provide access to high-growth opportunities with lower correlation to public market fluctuations, but perhaps more importantly, these assets offer greater control over investments, which is particularly valuable in periods of market turbulence," Star says.

Pitcher Partners partner Adam Stanley agrees, noting that valuations in equity markets have been exceptionally high, making more of a case for alternatives.