Investment in unconventional assets to boost portfolio variety among private wealth management firms
Family offices are increasingly allocating their investments to alternative assets, particularly infrastructure, in a strategic move aimed at achieving diversification benefits, income generation, and inflation protection.
According to a recent study, nearly two-thirds (64%) of family office investment managers plan to raise infrastructure allocations by 25% to 50% over the next two years. This shift reflects the attractiveness of infrastructure compared to other alternatives like real estate, private debt, and private equity.
The volatile geopolitical and economic environment in 2025, marked by inflation and market uncertainties, is driving family offices to seek assets like infrastructure that offer stability, income, and protection against inflation. This strategic move is part of a broader trend towards institutionalized investment practices, emphasizing data-driven, operationally efficient management to balance performance, risk, and long-term generational wealth goals.
Sixty-four percent of family office investment managers also plan to increase private debt allocations by a similar range, while 45% plan a 10% to 25% increase in private equity allocations. Twenty-two percent are planning similar increases to real estate allocations.
The diversification benefits of alternative assets are the main reason for boosting allocations, according to the study. The ability of some alternative asset classes to provide protection against inflation comes in at sixth. Greater choice in the alternative asset sector ranks fifth as a reason for increased allocations.
The ability to provide an income is the third most important benefit of investing in alternatives, according to the family members and senior employees. The recent strong performance of alternative assets is the fourth most common attraction of the asset class.
Simona Watkis, head of private client, Cayman at Ocorian, states that there is a clear acceleration in the shift towards alternative investments. Vince Calcagno, head of US growth for Ocorian, adds that family offices are increasingly viewing alternatives as part of their core portfolio.
Increased transparency of the alternative asset class is another reason for the increased allocations. Family offices are increasingly behaving like institutional investors, seeking data-driven, operationally efficient ways to gain exposure to alternatives.
In summary, family offices seek from alternative assets—and infrastructure in particular—portfolio diversification, stable income, inflation hedging, increased transparency, and reduced correlation to traditional market risks, enabling them to secure and grow multi-generational wealth amid global uncertainties.
Finance plays a significant role in the strategic decision-making of family offices, as they increasingly invest in infrastructure to achieve diversification, income generation, and inflation protection. The attractiveness of infrastructure, combined with the ability to provide a stable income and protection against inflation, makes it a preferred alternative investment choice for family offices.
