Key Insights for a New Era of Wealth Stewardship
Economic Outlook
Family offices are undergoing a digital awakening. With economic uncertainty, generational transition, and mounting operational complexity, technology is no longer a back-office consideration, it’s now central to long-term strategy. The UBS Global Family Office Report 2025 makes this clear: over 70% of family offices plan to invest in technology, and nearly as many expect to integrate AI into financial reporting, analysis, and oversight. This year’s report reveals how tech modernization, alongside shifts in governance, allocation, and risk strategy, is reshaping the global family office landscape. Below, we’ve distilled the most critical takeaways for forward-looking wealth stewards.
86% of family offices expect a global recession within the next 24 months, yet only 18% plan to reduce portfolio risk.
Rather than retreating, family offices are repositioning:
- Increasing allocations to fixed income and private credit
- Rotating out of developed-market equities
- Prioritizing resilience and long-term performance
UBS notes that while family offices maintain conviction in their long-term strategies, they’re preparing for volatility through tactical adjustments and smart portfolio rebalancing.
Top risks in 2025 include:
- Global trade war (70%)
- Geopolitical conflict (52%)
- Global recession (33%)
To hedge these risks, many are increasing exposure to hedge funds, illiquid assets, and precious metals, while emphasizing manager selection and active strategies.
Private Markets and Credit
Private equity remains a core allocation, but enthusiasm is shifting toward structured, income-generating assets.
- Growth and venture capital strategies are being reassessed
- Direct lending and buyouts are gaining momentum
- Private credit is the fastest-growing alternative allocation, particularly in North America
Allocations to private credit doubled year-over-year, rising from 2% in 2023 to 4% in 2024, with plans to increase to 5% in 2025. Family offices are clearly prioritizing yield and stability in a high-rate environment.
Governance and Succession
53% of family offices have made or are making changes to their governance structures, reflecting a deeper commitment to professionalized oversight, especially as families prepare for the $80 trillion generational wealth transfer.
Key governance trends include:
- Formalizing succession planning
- Establishing investment and advisory committees
- Increasing use of digital tools for transparency and control
Strong governance is no longer optional—it’s foundational to intergenerational wealth continuity.
Technology and Operational Strategy
Over 70% of family offices plan to invest in technology to enhance operations and oversight.
This includes:
- Real-time dashboards and consolidated reporting
- Role-based document vaults
- Automated compliance workflows
UBS highlights growing adoption of AI:
- 69% plan to use it for financial reporting and data visualization
- 64% for text analysis (e.g., document summarization)
- 62% for portfolio analysis and quantitative tasks
Family offices are clearly moving beyond spreadsheets and legacy systems. Platforms must now deliver security, centralization, and AI-powered insights.
Emerging Technologies and Sustainability
Family offices are increasingly prioritizing emerging tech sectors such as:
- Healthcare and medicine
- Electrification and energy transition
- Generative AI
The sectors expected to benefit most from AI include financial services, biotech, and healthcare. While many family offices are still learning how to deploy capital into these areas, their intent to engage is accelerating.
On the sustainability front, attitudes are evolving:
- 46% now view sustainability and impact investing as an opportunity (up from 42%)
- Only 33% see it primarily as a risk management tool (down from 47%)
Key investment themes include cleantech, health innovation, and education, often pursued through philanthropic channels.
Active vs. Passive Management
Globally, 64% of equity portfolios are actively managed. While U.S. family offices favor passive strategies (53%), family offices in Asia-Pacific and Europe continue to lean into active styles.
There’s rising interest in:
- Growth, value, and quality strategies
- Small-cap exposure despite recent large-cap dominance
Active management is being used not just for alpha, but for tactical flexibility and downside protection in volatile markets.
Regional Perspectives
Asia-Pacific family offices show the greatest optimism, leaning into growth sectors like AI, infrastructure, and emerging technologies.
- 35% of APAC offices plan to increase exposure in the region
Meanwhile:
- 86% of U.S. family office assets are now held domestically, reflecting a significant home bias
- Europe is taking a more balanced yet cautious approach
Tactical differences across regions are also reflected in allocations to gold, hedge funds, and private markets.
Final Thought: What This Means for Family Offices
The UBS 2025 report confirms a sector-wide shift toward long-term strategy, modernization, and intergenerational readiness.
Key imperatives for family offices today:
- Prioritize strategic flexibility in volatile conditions
- Strengthen governance to support succession and oversight
- Leverage AI and operational tech for scalable infrastructure
- Adjust portfolios to reflect macro risk and unlock opportunity in private markets
- Treat sustainability as a growth lever, not just a checkbox
In an era of disruption and opportunity, family offices that modernize will lead, not just preserve.
