Family Offices Boost Private Market Investments with Allocations Surging Over 500% Since 2016

Family offices, the private investment firms of wealthy families, are sharply increasing their exposure to private markets, with allocations rising more than 500% in less than a decade.

According to data from Preqin, the number of family offices invested in private markets climbed from 651 in 2016 to 4,067 in 2025, marking a 524% increase. This growth outpaced allocations by wealth management firms and foundations, which rose by 410% and 81% respectively.

Much of the momentum has come in recent years, with exposure growing 21% in 2023 and 26% in 2024. In just the first half of 2025, family offices added another 8%. Experts say this surge reflects rising interest in alternative assets such as private credit, infrastructure, and data centers.

Industry leaders note that family offices can commit to illiquid assets thanks to their long-term investment horizons and growing wealth. Deloitte estimated family offices managed $3.1 trillion in 2024, up 63% from 2019. This financial strength allows them to pursue decades-long strategies less tied to short-term cash needs.

While enthusiasm remains high, surveys suggest family offices are becoming more selective. UBS research this year showed plans to expand holdings in private debt but reduce private equity exposure in favor of developed market equities. Still, when looking at five-year plans, more offices intend to grow, rather than cut, their private market allocations.