Family offices favor stocks, private equity despite inflation fears — SkimNews
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- Citi Wealth's annual survey of 351 family offices, conducted in June and July, found 63% of respondents cite inflation as their top investing concern, up from 37% in 2025, while trade/tariff fears fell from 60% to 18%.
- Despite those worries, family offices plan to increase allocations to public equities, private equity, and direct investments over the next 12 months, with nearly a third (on net) aiming to boost global developed equities exposure.
- Over the past 12 months, a net 34% of family offices raised public equities allocations while 42% made no change, and a net 15% increased private equity and cash allocations each, according to the survey.
- Private credit drew the most bearish outlook of any category, with a net 12% of family offices planning to decrease allocations over the next 12 months.
- Only 11% of family offices (3% on net) said they would invest more in commodities — a figure Citi Wealth's Alexandre Monnier called surprising given oil and gasoline's potential as inflation hedges.
- North American family offices showed the strongest real estate appetite, with 37% planning to allocate more versus 25% across the overall respondent pool.
- 40% of family offices reported plans to increase direct investment activity, with Monnier citing both greater portfolio control and a way to engage next-generation heirs in the family business.
Why it matters: For ultra-wealthy allocators, the data shows risk management has shifted from defensive de-risking to active staying-invested: 63% flag inflation as their top fear, yet a net 34% added equities last year and nearly a third plan more stock exposure ahead. The selective pessimism toward private credit and commodities, paired with enthusiasm for direct deals and North American real estate, reveals where these investors think inflation hedges actually work — not in commodities, but in owned assets.
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