Charging Bull in New York City’s Financial District.
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Nearly two-thirds of family offices cited inflation as their top investment concern, according to a new report from City Wealth. However, ultra-high net worth investment firms are still prioritizing growth and plan to increase their allocations to public equities, private equity and direct investing over the next 12 months, according to the survey results.
The annual survey of 351 companies conducted in June and July found that 63% of respondents cited inflation as their top concern, up from 37% in 2025. Fears over trade disputes and tariffs were cited as a top concern by 18% of respondents, compared with 60% last year. Inflation also outpaced other concerns, including changes in interest rates (cited as a top concern by 44% of respondents), market volatility (34%) and conflict in the Middle East (32%).
Alexandre Monnier, head of family office advisory at City Wealth, said he was surprised that inflation concerns rose so quickly among family offices. But he added that the survey showed that family office portfolio allocations have not changed dramatically.
“I think family offices are becoming more sophisticated, and I think risk management is more proactive, allowing them to continue investing in times of uncertainty, rather than scaling back the way they have historically done it,” Monnier said.
Despite inflation concerns, bond allocations remained largely stable. On the net, only 3% more respondents decreased their allocation than increased it in the past 12 months. A net 34% of companies increased their public equity exposure, while 42% reported not adjusting their allocation.
The survey found that stocks, private equity and cash attracted the most increased capital, with a net 15% of respondents increasing their allocation in each category.
Looking ahead, nearly a third of online respondents said they plan to increase their exposure to global developed stocks over the next 12 months. About 10% of family offices said they planned to increase their private equity allocation through direct investments or funds.
According to the survey, family offices are the most bearish on private credit, with a net 12% of respondents planning to reduce their allocations over the next 12 months.
While average sentiment was negative towards emerging market bonds and cash, there was a tendency to reduce allocations in these categories by just 6%. Monnier said family offices may have an incentive to hold liquid but inflation-sensitive assets to maintain flexibility for later investments or as a defensive measure.
Only 11% of family offices said they would increase their investments in commodities, and 3% net. Monnier said this is surprising given the potential of commodities, especially oil and gasoline, as inflation hedges, but said family offices may be outsourcing these investments to advisors.
North American family offices were most interested in real estate, with 37% planning to allocate more funds to traditional inflation hedges, compared to 25% of respondents overall.
Monnier noted that North American family offices report the highest average allocations to directly owned real estate and direct private equity holdings.
“I think this highlights the appetite, ownership and private market exposure that we see in North America,” he said.
Concerns about inflation and market instability have not dampened family offices’ appetite for direct investment, with 40% of family offices reporting that they intend to increase their activity to some extent. According to the report, only 11% said they planned to make small cuts or pauses. Monnier attributed this enthusiasm to family offices not only seeking greater control over their PE portfolios, but also ways to involve heirs in family offices.
“The next generation is attracted to direct investments and tangible assets rather than paper portfolios,” he said. “You know, if you’re investing in a hedge fund, it’s in the report, but it’s hard to understand. What do you own? If you own stock in a company or real estate, you can touch it. It’s across the street.”
