As inflation, central bank unpredictability and geopolitical risks continue to rattle global markets, family offices have begun rethinking traditional investment strategies, according to new research released by active investment manager Schroders.
The 2025 Schroders Global Investor Insights Survey, based on responses from 90 family offices worldwide, has revealed that sophisticated investors are pursuing portfolio resilience while remaining open to strategic opportunities.
This includes a move towards active management along with both public and private equity to balance risk and growth. The survey showed that 51 per cent of family offices now consider private equity as their most attractive asset class, while 48 per cent favoured public equities.
Theone Star, head of private wealth at Schroders Australia, said the investment manager has observed a “notable shift” in family office portfolio construction as economic headwinds have created “an environment where the traditional investment playbooks are no longer suitable”.
“Portfolio resilience” was identified as the top priority for 56 per cent of family offices over the next 12 to 18 months, while 46 per cent of respondents indicated plans to reduce their risk appetite.
Only 17 per cent said they plan to increase their exposure to risk over this period.
“Policy-related risks have also emerged as a major concern, with uncertainty around interest rates, regulatory changes and election-driven market volatility prompting a reassessment of asset allocation,” Star said.
“In response, family offices are increasingly turning to private markets, with private equity, real estate and infrastructure investments becoming integral to achieving a balanced portfolio.”
Private assets offer high-growth potential with less correlation to public markets, Star noted, while also giving investors more control, an important advantage during heightened turbulence.
The survey further revealed that sector specialist private equity has proven popular among respondents, with 52 per cent stating they prefer this approach.
Meanwhile, a regional tilt has emerged, with 61 per cent of family offices identifying small to mid-cap buyouts as holding the highest return potential.
In the hunt for income, 81 per cent of family offices now view private debt and direct lending as the best sources of risk-adjusted returns.
Moreover, active management returned to favour, with 74 per cent of respondents expressing confidence in active managers’ ability to deliver value, with around 86 per cent stating they are likely to increase their allocations to active strategies in 2025.
“This is precisely the type of market where active managers can deliver real value – active has the edge,” Star said. “The ability to identify mispriced assets, quickly adjust positions and capitalise on dislocations is crucial in today’s landscape.”
Family offices are also integrating next-generation perspectives, showing interest in digital assets, venture capital and thematic investments aligned with younger family members’ values.
“The most successful family offices will be those that combine disciplined risk management with the flexibility to capitalise on emerging opportunities,” Star said. “By maintaining a balanced approach, investors can position themselves for ongoing growth.”
