Family Offices: Private Credit & Infrastructure Investment
- Wealth management firms catering to the ultra-rich are shifting more capital into alternative assets, including real estate and venture capital.
- The survey, which included responses from 175 family offices overseeing a combined $320 billion between March 17 and May 19, revealed that 32% plan to increase their investments...
- While private equity maintains a strong position, 12% of respondents intend to reduce their allocations to these funds or direct investments. Sentiment toward private equity is mixed, with...
Family offices are aggressively reallocating capital, prioritizing alternative assets like private credit and infrastructure investment, due to shifts in the market. Our analysis reveals a surge in interest, with 32% planning to boost private credit investments this year, closely followed by infrastructure at 30%. Concerns about private equity are prompting diversification, as wealth managers seek to balance risk and capitalize on AI infrastructure demands. Armando Senra of BlackRock highlights increased interest in private credit and infrastructure amid concerns about liquidity. AI’s influence is undeniable, as seen by investments in data centers.News Directory 3 provides expert analysis to keep you informed about market trends. These strategic moves are reshaping investment landscapes.Discover what’s next in this dynamic habitat.
Family Offices Boost Alternative Asset Investments Amid AI Boom
Updated June 28, 2025
Wealth management firms catering to the ultra-rich are shifting more capital into alternative assets, including real estate and venture capital. A recent BlackRock survey indicated that family offices now allocate an average of 42% of their portfolios to alternatives, a 3% increase from last year.
The survey, which included responses from 175 family offices overseeing a combined $320 billion between March 17 and May 19, revealed that 32% plan to increase their investments in private credit this year. Infrastructure was the second most favored asset class, with 30% looking to increase investments through debt or equity.
While private equity maintains a strong position, 12% of respondents intend to reduce their allocations to these funds or direct investments. Sentiment toward private equity is mixed, with 30% expressing optimism and 22% expressing pessimism about its prospects this year.
Armando Senra of BlackRock noted that family offices are diversifying within private markets, leading to increased interest in private credit and infrastructure. He emphasized that liquidity concerns, stemming from slower exit opportunities in private equity, are a contributing factor.
Private equity continues to be a centerpiece of the portfolio. I think that what you see is more of a desire to diversify for a number of reasons.
Senra also highlighted the appeal of infrastructure investments, which offer returns similar to private equity but with lower risk. Approximately 75% of survey respondents expressed a positive outlook on infrastructure, while only 5% were pessimistic.
The growth of artificial intelligence is also influencing investment strategies.Senra pointed out the critically important infrastructure demands of AI, including data centers and enhanced energy grids. Jeff Bezos’ family office recently supported atlas Data Storage with $155 million in seed funding, reflecting this trend.
Despite the enthusiasm for private credit, some family offices are approaching it cautiously. While 51% are optimistic, 21% have expressed concerns about the quality of borrowing companies and potential defaults during an economic downturn.
Senra acknowledged the need for careful manager selection in the increasingly popular private credit market. he noted that 62% of respondents favored special situation debt, typically used for companies undergoing restructuring or facing financial challenges. direct lending was the second most preferred category. The report suggests that private credit, when executed effectively, can provide greater investor protection compared to private equity.
What’s next
Family offices will likely continue to adjust their investment strategies to balance risk and return, with a focus on sectors benefiting from technological advancements and infrastructure advancement.