Family offices are increasing their exposure to alternative assets as the need to diversify investment holdings grows, analysis from Ocorian has found.

The global services provider’s study of family members, senior family office staff, and intermediaries working for family offices revealed fund managers were planning to increase allocations to all major alternative asset classes, while none were planning to reduce their exposure.

Nearly two thirds (64 per cent) of family office investment managers expected to increase allocations to infrastructure by between 25 per cent and 50 per cent over the next two years.

Meanwhile, 22 per cent planned similar increases in real estate and 32 per cent expected to boost allocations to private debt by a similar amount.

More than a fifth (21 per cent) said they were going to increase exposure to private equity by between 25 per cent and 50 per cent, while 10 per cent were expecting to increase their allocation to the asset class by more than 75 per cent, in the coming 24 months.

Ocorian noted that the diversification benefits of alternative assets was cited as the primary reason for increasing allocations, ahead of the improved transparency of the asset class.

The ability of certain alternative assets, such as infrastructure, to provide an income was ranked as the third greatest benefit of investing in alternatives.

Recent strong performance ranked fourth, while greater choice in the sector was fifth and the ability of some alternative asset classes to provide protection against inflation was sixth.

“We’re seeing a clear acceleration in the shift toward alternative investments across both mature and emerging family office markets,” commented Ocorian head of private client - Cayman, Simona Watkis.

“In the Caribbean and Latin America, family offices are increasingly adopting global diversification strategies while still anchored in regional opportunities.

“The Cayman Islands, long regarded as a premier jurisdiction for sophisticated family office structuring, continues to attract families looking for stability, innovation, and cross-border solutions.

“Likewise, our clients in Asia are seeking greater transparency, control, and performance all of which alternative assets are well-positioned to deliver.”

Ocorian head of US growth, Vince Calcagno, added: "Family offices, as they’ve matured over the past two decades, are behaving more like institutional investors than ever before - seeking data-driven, operationally efficient ways to gain exposure to and track alternatives.

“As the complexity of these investments increases, so too does the need for sophisticated solutions, especially outsourced CFO, that can offer the financial clarity and control families require.

“Whether it's infrastructure, private credit, or real estate, the key is supporting families with the right technology and knowledge to evaluate performance, manage risk, and plan strategically across generations."

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