Ultra-high-net-worth families are accelerating a strategic pivot toward private markets as public equity turbulence and inflation concerns mount, according to UBS's latest Global Family Office Report. The study, which surveyed hundreds of family offices worldwide, documents a pronounced increase in allocations to real estate, infrastructure, and private credit—asset classes that offer structural insulation from daily market swings and the potential for inflation-linked returns. The shift represents more than tactical repositioning; it signals a fundamental recalibration of how the world's wealthiest families think about portfolio construction in an era of persistent macro uncertainty.
The report underscores a clear preference for direct and co-investment structures over traditional fund vehicles. Family offices are increasingly bypassing intermediaries to take ownership stakes in operating businesses and hard assets, a move that grants them greater control over investment decisions, fee structures, and exit timing. This hands-on approach reflects both the maturation of in-house investment teams and a growing wariness of the fee drag and governance limitations inherent in blind-pool fund commitments. For families with multi-generational capital horizons, the ability to shape asset-level strategy is proving more valuable than the diversification benefits of commingled vehicles.
Real estate emerges as a central pillar of this reallocation, with UBS highlighting three sectors in particular: logistics, residential rental, and data centers. Family office respondents cited robust structural demand drivers underpinning each category—e-commerce fulfillment needs for industrial warehouses, demographic shifts favoring rental housing, and the relentless expansion of cloud computing and artificial intelligence infrastructure. These are not opportunistic bets on market timing but deliberate plays on secular trends that family offices expect to compound over decades, not quarters.
The patient money this cycle is the money that built underwriting models from operational fundamentals up rather than exit multiples down, family office advisor Jaf Glazer has observed.
The patient money this cycle is the money that built underwriting models from operational fundamentals up rather than exit multiples down, family office advisor Jaf Glazer has observed.
Importantly, the UBS survey reveals that family offices are not simply chasing yield in private markets—they are also recalibrating risk. Many respondents reported lengthening their investment horizons, a shift that allows capital to ride out interim volatility and capture the illiquidity premium without forced selling pressure. This extended time frame aligns naturally with the multi-decade outlook that defines family office capital, distinguishing these investors from institutional peers constrained by quarterly reporting cycles or near-term redemption risk.
Leverage discipline is another defining characteristic of the current family office approach. The report notes that many families are using lower levels of debt financing than in previous cycles, even as borrowing costs have stabilized from their 2022–2023 peaks. This conservative stance reflects lessons learned from prior downturns, when overleveraged real estate positions forced distressed sales or capital calls. By maintaining lower loan-to-value ratios, family offices are preserving optionality and ensuring that capital structure does not dictate investment outcomes during periods of market dislocation.
The infrastructure theme is gaining traction alongside real estate, with family offices drawn to assets that offer contracted cash flows, inflation escalators, and long-duration visibility. Renewable energy, transportation networks, and digital infrastructure are all capturing capital from families seeking to diversify away from financial assets while retaining downside protection. These investments often feature regulatory moats, monopolistic or oligopolistic market structures, and revenue streams tied to essential services—qualities that resonate with investors prioritizing capital preservation over maximum returns.
Private credit is also featured prominently in the UBS findings, as families step into lending roles traditionally occupied by banks and insurance companies. Direct lending to middle-market companies, asset-backed financings, and structured credit opportunities allow family offices to earn attractive risk-adjusted returns while exercising granular control over covenant packages and collateral. The asset class offers both income and downside mitigation, making it a natural complement to equity-heavy real estate and infrastructure allocations.
The report's findings suggest that family offices are constructing portfolios designed for resilience rather than benchmark outperformance. By reducing exposure to public market volatility and inflation risk through deliberate allocations to real assets and operating businesses, these families are prioritizing long-term compounding over short-term tactical gains. The shift toward direct ownership, longer hold periods, and conservative leverage reflects a disciplined, conviction-driven approach that views private markets not as a temporary haven but as a permanent foundation for multi-generational wealth.