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According to a new survey by Blackrock, Ultra-Rich’s investment firms are rapidly investing in alternative assets such as real estate and venture capital. Family offices have average 42% portfolio allocation for options in recent months, up to 3 percent marks from last year, and they are making sufficient changes to invest that capital.
According to the survey, about one-third (32%) of single-family plans to increase its allocation for private credit this year. The second most popular asset class was the infrastructure, 30% of respondents reported that they intend to invest more in the area through debt or equity. The survey overtook more than $ 320 billion in 175 family offices, combined between March 17 and 19.
Private equity still has positive speed, although 12% of the respondents stated that they plan to reduce their allocation for money or direct investment. Asked about the possibilities of asset class this year, 30% reported to feel optimistic, while 22% said his attitude was pessimistic.
Blackrock’s Armando Sillara told CNBC that the family offices are still investing more capital in private equity. However, they are spreading their bets when they enter private markets, so the growing market share of private credit and infrastructure.
“Private equity remains a focal point of portfolio,” Senra said, which leads the institutional business of the asset manager in the US. “I think what you see is a desire to diversify for many reasons.”
Liquidity is an important factor, as he said, as Recession Meaning private equity investors have to wait longer for returns.
Senra also cited a low-risk appeal for infrastructure investment, which he said that “the return of private-equity-type could provide quite low risk.” Three-fourths of the Blackrock Survey reported to feel fast or optimistic about the infrastructure, expressing only 5% pessimism.
This area is a way of investing in artificial intelligence bounce for family offices.
“AI needs infrastructure,” Senra said, keeping in mind the increasing demand of data centers and the demand for improvement in energy grid.
In May, Jeff Bezos’s family office Supporting the seed round of $ 155 million for atlas data storage, a firm that uses the DNA-style system to store data more efficiently and at low cost.
For private credit, some family offices areware of publicity. While 51% of the respondents said that they were optimistic or rapid on private credit, 21% reported a pessimist or recession approach. Crossing the capital in private credit has raised concerns Quality of borrowing companies And in the event of recession, how many loans will be default.
Song said that caution is natural when an asset class grows in popularity.
“I think whenever you have enough class that attracts a lot of attention, you really need to separate the managers who have experience in different market environments,” he said.
He said, 62% of the respondents took favor to the special status loan, usually extended to companies that are restructuring or facing stress. The second most liked private debt category was direct lending. According to the report, private credit may offer more investors conservation than private equity.
