As financial markets face heightened volatility and geopolitical tensions mount, the UBS Global Family Office Report 2025 offers a timely and comprehensive look into the priorities, risks, and strategic direction of the world’s leading family offices. Surveying 317 family offices managing an average of USD 1.1 billion each, the report highlights evolving trends in investment, governance, and technology, underscoring a core commitment to long-term wealth preservation.
Shifting Allocations Reflect Search for Growth and Stability
Despite market turbulence, family offices have maintained a disciplined approach to strategic asset allocation. The division between traditional (56%) and alternative (44%) asset classes has remained relatively stable. However, allocations within these categories are shifting:
- Developed Market Equities: Allocations rose to 26% in 2024 and are expected to reach 29% in 2025. Family offices are betting on structural growth in sectors like AI and healthcare.
- Private Debt: Doubling from 2% to 4%, with plans for a further increase, private debt is being embraced for its yield potential and diversification benefits.
- Cash Holdings: Declining from 10% in 2023 to 8% in 2024, signalling a move towards more active capital deployment.
While private equity remains a significant component at 21%, exposure is being trimmed amidst challenging exit environments and subdued deal flow. This tactical caution contrasts with longer-term optimism about private markets.
The Return of the Home Bias
Geopolitical concerns and macroeconomic uncertainty have fuelled a pronounced retrenchment in geographic diversification, especially among US family offices. North America and Western Europe now account for nearly 80% of global family office assets, with US offices allocating a striking 86% domestically.
Despite this, there is growing interest in emerging markets, particularly India and Mainland China, driven by expectations of structural growth. However, concerns about legal frameworks, political instability, and currency volatility remain significant barriers.
Risk Management in a World of ‘Permacrisis’
Family offices are not only focused on investment returns but also on risk mitigation in an increasingly complex landscape. The top perceived risks in 2025 include:
- Global Trade War (70%)
- Geopolitical Conflict (52%)
- Global Recession (33%)
To hedge these risks, many are leaning into active management, hedge funds, and precious metals. The challenge, however, lies in identifying effective risk-offsetting strategies in an environment where traditional asset class correlations are breaking down.
Embracing Innovation and Technology
Investment in emerging technologies is gaining traction, particularly in healthcare, electrification, and AI. While family offices often lack formal strategies in these areas, there is a clear desire to learn and engage. Generative AI is seen as particularly transformative, both in portfolio management and operations. Banks, financial services, and pharmaceuticals are viewed as primary beneficiaries.
Internally, artificial intelligence is being adopted for financial reporting, data visualisation, and text analysis, with 69% of family offices expecting to use AI for these functions within five years.
Professionalisation and Governance Evolution
Family offices are maturing operationally. Key investment and reporting functions, such as asset allocation and risk management, are predominantly handled in-house, reflecting a preference for control, privacy, and expertise. Outsourcing decisions are typically driven by a lack of technical resources or the need for operational scalability.
Governance is also evolving. Investment committees are now common, with participation from family members, professionals, and independent advisors. This trend highlights an increasing commitment to structured decision-making.
Succession Planning and Staffing: Human Factors Matter
While over half of family offices have a succession plan in place, many have yet to act, often due to a perceived lack of urgency. When hiring, personality and trust consistently outweigh academic credentials, reflecting the importance of cultural fit and long-term alignment.
Interestingly, despite growing asset bases, family offices remain lean. The first hire in a new family office is most likely to be an investment portfolio manager, though preferences vary by region.
A Long-Term Lens Amidst Short-Term Volatility
The 2025 report confirms that family offices remain focused on long-term capital preservation, even as they tactically adjust to new challenges. Whether navigating geopolitical instability, deploying capital in emerging technologies, or preparing the next generation for leadership, family offices are adapting, deliberately and prudently, to safeguard legacies in a rapidly changing world.
If you would like to learn more about how a family office can support your long-term financial goals, get in touch with our team Finco Trust. Whether you are planning for succession, looking to consolidate your investments, or seeking a more structured approach to managing your wealth, our team is here to help. We will arrange a private consultation to understand your unique needs and walk you through the solutions that can work best for you and your family.