Family offices managing a combined $119.37 billion are poised to raise their investment risk profiles sharply, with three-quarters planning higher exposure over the next twelve months, according to fresh research from Ocorian. The global study, conducted in February among two hundred family office principals and senior executives across sixteen jurisdictions, found that 13 percent anticipate dramatic increases in risk appetite—a sign that patient capital is preparing to move beyond traditional public-market anchors. The survey spanned the United Kingdom, United States, United Arab Emirates, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius and Bahrain, among other centres.

Improved transparency around alternative asset classes emerged as the primary catalyst, cited by 61 percent of respondents as the key driver of rising risk tolerance. Nearly half—48 percent—pointed to falling interest rates and the outperformance of artificial-intelligence and technology stocks as additional incentives, while 46 percent said geopolitical instability is compelling offices to rethink their risk posture. The data suggests a shift from defensive positioning toward more active deployment, even as macro volatility persists across regions and sectors.

Private equity will absorb the largest inflows, with all surveyed family offices expecting to increase allocations to the asset class over the next two years. Two-thirds plan to lift private equity exposure by between 25 and 50 percent during that window, underscoring confidence in buyout, growth and venture strategies despite higher entry multiples in certain segments. The unanimity of sentiment marks a notable departure from the more cautious stance many offices adopted during the pandemic and subsequent rate-hiking cycle.

Broader private-market categories also registered strong momentum. Ninety-six percent of respondents intend to raise allocations to private capital, while 93 percent plan increases in private debt—a segment benefiting from floating-rate structures and disintermediation of traditional bank lending. Infrastructure attracted commitment from 88 percent of offices, and real estate garnered interest from 86 percent, the latter figure reflecting continued appetite for income-producing assets even as construction costs and financing rates remain elevated in many markets.

Environmental, social and governance principles continue to shape portfolio construction, with 99 percent of family offices describing ESG considerations as a key factor in their investment decisions. Seventy-nine percent expect their focus on ESG to intensify over the next three years, suggesting that sustainability criteria are becoming embedded in due diligence and manager selection rather than treated as an overlay or reporting exercise. The convergence of impact objectives and return targets appears to be gaining traction among multi-generational wealth holders.

Andy Bailey, Head of Private Client Guernsey and Isle of Man at Ocorian, said: "Family offices are increasingly willing to take on more risk and their growing interest in alternative assets is a major reason for that – with plans to increase allocations to major alternative asset classes in general. It is, however, striking that nearly half believe that rising geopolitical instability is leaving family offices with little choice but to increase their risk appetite, as our research shows."

The survey's geographic breadth—encompassing onshore and offshore centres—provides a window into how family offices are navigating divergent regulatory regimes, tax frameworks and currency dynamics. Jurisdictions such as Jersey, Guernsey, Bermuda and the Cayman Islands remain popular domiciles for structuring vehicles, while wealth hubs in the Middle East and Asia continue to attract capital from families seeking proximity to growth markets and favourable tax treatment.

Ocorian's study also highlights the operational complexity that accompanies higher alternatives exposure, with offices requiring specialist support in fund administration, accounting, investor services and regulatory compliance. The firm's global footprint enables it to deliver formation and administration of family office structures, human resources support, governance frameworks, residency and relocation services, and specialist capabilities in immigration, payroll, marine and aircraft crew management and financial reporting—services that become more critical as portfolios diversify and cross-border holdings expand.

The research was commissioned by Ocorian and conducted by independent research firm PureProfile, which interviewed family members and full-time employees of family offices managing or owning wealth totalling $119.37 billion. The timing of the fieldwork—February this year—captures sentiment before recent volatility in equity and credit markets, suggesting that family offices entered the year with conviction that alternatives would deliver superior risk-adjusted returns over a multi-year horizon, even as short-term macro uncertainty persisted.