Most family offices don’t feel compelled to make material changes to their portfolios, citing their long-term investment horizon and high allocations to alternatives as reasons. However, family offices have growing concerns, particularly around diversification, equity valuations, liquidity needs and the possibility of inflation, according to the inaugural BlackRock Global Family Office Survey of 185 family offices globally.
Many family offices indicated their portfolios have proved resilient during recent turbulence, but their concerns over portfolio diversification are growing, and new challenges have arisen.
Despite challenges, private equity remains the alternative investment of choice. Private debt, real estate and infrastructure are all seen as capable of generating long-term yields. Hedge funds appear to be enjoying a resurgence as many recognize that they could be well placed to profit from a more volatile and dispersed environment.
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