A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
Investment firms of the ultra-rich are increasingly investing in alternative assets like real estate and venture capital, according to a new survey by BlackRock. Family offices averaged a 42% portfolio allocation to alternatives in recent months, up 3 percentage points from last year, and are making substantial changes to how they invest that capital.
Nearly one-third (32%) of single-family offices planned to increase their allocations to private credit this year, according to the survey. The second most-popular asset class was infrastructure, with 30% of respondents reporting they intend to invest more in the sector through either debt or equity. The survey polled 175 family offices overseeing more than $320 billion combined between March 17 and May 19.
Private equity still has positive momentum, though 12% of respondents said they plan to decrease their allocations to funds or direct investments. When asked about the asset class’ prospects this year, 30% reported feeling optimistic while 22% said their attitude was pessimistic.
