According to the largest asset manager on the planet, family offices have been investing more money in alternative investments amid the global uncertainties.
Bloomberg reports that a recent survey conducted by BlackRock shows private credit as the top alternative asset among family offices.
More than half of the 175 global family offices surveyed have an optimistic outlook for private credit, and almost a third plan to increase their allocations in this asset class.
BlackRock’s Americas Institutional Business Head, Armando Senra.
They are increasing their exposure to private markets. While private equity was the primary focus of allocations, you now see a high level of interest for private credit and a beginning interest in infrastructure.
According to the survey, 30% of respondents intend to invest more money in infrastructure.
Lili Forouraghi is BlackRock’s US head for family offices, healthcare, endowments and foundations. She says that super-rich people are becoming more interested in private credit because it can generate higher returns than the public bond market.
The infrastructure investment related to the decarbonization, and “the buzz around AI and data centers” are also areas of interest for her clients.
According to the survey, family offices have an average of 42% alternative investments in their portfolios. This is up from just 39% from a previous survey in 2022-2023. Private credit accounts for anywhere between 15% and 30% in some portfolios.
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The report may change as new information becomes available.
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