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Family Offices Cross 60% Alternative Allocation Threshold for First Time

Real estate now accounts for 11% of portfolios while infrastructure emerges as the top priority for new capital in the year ahead, BNY Wealth survey finds.

By the Family Office Real Estate Daily Desk·Thursday, November 12, 2026·3 min read
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What are family offices allocating to real estate and alternatives in 2026?

BNY Wealth's 2026 Investment Insights for Single Family Offices, surveying 290 single-family offices with at least $250 million in assets, finds alternatives now account for 60% of portfolios — up 12 percentage points in one year and surpassing traditional assets for the first time. Real estate represents 11% of portfolios, and infrastructure is the top investment priority for the coming 12 months, with 56% of family offices planning to increase exposure.

Key facts
  • BNY Wealth's 2026 Investment Insights for Single Family Offices, produced with The Harris Poll, surveyed 290 single-family offices with at least $250 million in assets under management between 5 January and 3 February 2026.
  • Alternatives allocations rose 12 percentage points over the past year to 60% of family office portfolios, surpassing traditional assets, which stand at 41%, according to BNY Wealth's survey.
  • Real estate accounts for 11% of family office portfolios, making it the second-largest individual holding after public equity at 13%, according to BNY Wealth's survey of 290 single-family offices.
  • Some 56% of family offices plan to increase infrastructure exposure over the coming 12 months, with BNY Wealth's report tying the shift to the global build-out of AI data centres, power systems and semiconductor capacity.
  • Venture capital allocations rose 40% year over year to 7% of portfolios, according to BNY Wealth's 2026 survey of 290 single-family offices.
  • Some 61% of family office decision-makers say AI integration has improved investment outcomes, including 14% who report a significant improvement and 47% a moderate one, according to BNY Wealth's survey.
Family Offices Cross 60% Alternative Allocation Threshold for First Time
Image: editorial illustration · Story sourced from futurefamilyoffice.net

Family offices have for the first time placed a majority of their assets in alternative investments, according to research from BNY Wealth. The firm's 2026 Investment Insights for Single Family Offices, produced with The Harris Poll, found that allocations to alternatives rose 12 percentage points over the past year to 60%, surpassing traditional assets, which stood at 41%. The online survey ran from January 5 to February 3, 2026, and polled investment decision-makers at 290 single family offices with at least $250 million in assets under management. Respondents were split almost evenly between the US and other countries, and 46% were responsible for more than $1 billion in assets, up from 34% the prior year.

Public equity remained the single largest holding but accounted for only 13% of portfolios, followed by real estate at 11%. Within alternatives, private equity funds accounted for 9%, direct private equity 8%, and private credit, infrastructure and venture capital 7% each. Venture capital allocations rose 40% year over year to 7% of portfolios, the report said.

Infrastructure was the top investment priority for the coming 12 months. Some 56% of family offices planned to increase their exposure, a shift the report tied to the global build-out of artificial intelligence data centres, power systems and semiconductor capacity. Private equity remained the leading asset class over the next five years, with infrastructure moving into second place.

Private credit was also gaining ground. The share of family offices selecting it as a top asset class over the next five years rose 46%, or 11 percentage points. Among non-US offices, allocations now almost matched real estate, at 8% versus 9%. The report cautioned that private credit's return profile partly reflected an illiquidity premium, highlighted in early 2026 by heightened redemptions at some semi-liquid funds.

For the year ahead in private markets, growth equity remained the leading priority globally, cited by 40% of respondents. Non-US offices put more weight on infrastructure and buyouts than their US peers. Infrastructure was the top priority for 21% of non-US offices, compared with 9% of US offices, while buyouts were prioritised by 20% of non-US offices versus 9% of US offices. Private credit was prioritised by 15% of US offices and 11% of non-US offices.

Direct investing remained a priority. Some 51% of family offices reported making six or more direct investments in the past year, and 56% planned to do so over the coming 12 months. The leading challenge, identified by 48% of respondents, was that the work was time-consuming. Some 8% reported making 11 or more direct investments in the past year, while 15% planned to make 11 or more in the coming 12 months.

For the third year running, AI was ranked the most interesting investment theme for the next five years, cited by 68% of respondents, although that share was 15 percentage points lower than a year earlier as other themes, including healthcare, gained ground. AI was also moving into day-to-day work. Fifty-one percent of decision-makers used data analytics and predictive modelling, often augmented by AI, in their investment process. A clear majority said AI integration had improved investment outcomes, including 14% who reported a significant improvement and 47% a moderate one. Only 8% said AI was extensively integrated into investment decision-making, while 40% had integrated it experimentally and 29% had done so for specific asset classes or decisions.

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

The move past 60% alternatives argues for a clearer liquidity budget and a formal review of redemption terms across the portfolio. If public equity now accounts for only 13% of assets, a principal needs to know how much can be raised in 90 days without triggering gate clauses or discounted secondaries. Private credit's illiquidity premium, flagged by BNY in the context of early-2026 redemptions, means that any allocation above 5% should be stress-tested for a scenario in which semi-liquid vehicles suspend withdrawals for two quarters.

Infrastructure's rise to the top of the priority list reflects the AI capital cycle, but the pricing has moved with it. Co-GP structures alongside sponsors with existing data-centre or power assets offer better control than a blind-pool fund commitment, particularly for offices that can move quickly on deals requiring $50 million to $150 million of equity. Direct ownership of fibre or substation assets may pencil at lower returns than a fund but avoids the J-curve and gives the principal a seat at the operating table when tenants renegotiate power contracts.

The gap between US and non-US priorities is wide enough to matter. Non-US offices are allocating twice as heavily to infrastructure and buyouts, which suggests they see less competition or better manager access in those categories. A US office that has been underweight infrastructure relative to the 56% planning to add exposure should ask whether it is paying a valuation premium by coming late to the theme, or whether the data-centre build-out has years left to run. The answer depends on the principal's view of AI capex durability, not on the survey result.

The direct-investing workload, cited by 48% as the main challenge, is a resourcing decision. If the office is making six or more directs a year, it needs dedicated deal staff or a programmatic partnership with a sponsor that can handle diligence and asset management. Trying to run a direct book from the CFO's desk with outside counsel on speed-dial burns time and misses opportunities. The 15% planning to do 11 or more deals in the coming year have either built that capacity or accepted that some deals will be underwritten lightly.

Questions this story answers

01What share of family office portfolios is allocated to real estate in 2026?

According to BNY Wealth's 2026 Investment Insights for Single Family Offices, real estate accounts for 11% of family office portfolios, making it the second-largest individual asset class holding behind public equity at 13%. Private real estate is a top-year-ahead private-market priority for 16% of US offices and 8% of non-US offices.

02Are family offices increasing infrastructure allocations in 2026?

Yes. BNY Wealth's survey of 290 single-family offices found that 56% plan to increase infrastructure exposure over the coming 12 months. The report ties this shift to the global build-out of AI data centres, power systems and semiconductor capacity. Non-US offices put more weight on infrastructure than their US peers, with 21% versus 9% citing it as a top private-market priority.

03How have family office alternatives allocations changed over the past year?

BNY Wealth's 2026 survey of 290 single-family offices found alternatives allocations rose 12 percentage points over the past year to 60%, surpassing traditional assets at 41% and marking the first time family offices have placed a majority of their assets in alternatives. BNY Wealth notes that some survey response options changed year over year, which may have contributed to the difference.

04What are family offices prioritising in private markets for the year ahead?

According to BNY Wealth's survey of 290 single-family offices, growth equity is the leading private-market priority globally at 40%, followed by private infrastructure at 15%, private equity buyout at 14%, private credit at 13% and private real estate at 12%. Non-US offices weight infrastructure and buyouts more heavily than US offices.

05How widely are family offices using AI in their investment process?

BNY Wealth's 2026 survey found 51% of family office decision-makers use data analytics and predictive modelling, often augmented by AI. Only 8% say AI is extensively integrated, while 40% have integrated it experimentally and 29% for specific asset classes. The most common uses already in place or being piloted are reporting automation and investment research, each cited by 72% of respondents.

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