60% of family offices plan to change asset allocation over the next year, more than double the share that expected changes in 2024, as war, tariffs and deglobalization reshape portfolio assumptions.
UBS said geopolitical conflict is now the top risk for both the next 12 months and the next five years, pushing investors to prepare for higher inflation, higher rates and more volatile markets.
70% are prioritizing infrastructure, while private equity is gaining traction and real-estate exposure is being moderated as families seek stable cash flows, inflation linkage and more control over returns.
88% home-region bias in North America is also being reassessed as some family offices diversify beyond U.S. dollar assets and AI-heavy U.S. exposure, while favoring targeted emerging-market positions over broad index bets.
Cash reserves and liquidity planning are becoming central so families can meet capital calls and taxes without forced selling, even as more than half still say they are hunting for buying opportunities.
With family offices pouring billions into high-risk alternatives, could their aggressive bets trigger a hidden liquidity crisis during the next market shock?
Nearly half of family offices recently suffered cyberattacks; will their multi-trillion-dollar pivot to private markets expose fatal flaws in digital security?
As younger heirs take control and ditch traditional portfolios, are family offices underwriting brilliant visionaries or just gambling on untested private equity?