Family office operational and investment trends

Recent data indicates evolving operational and investment strategies among family offices. An Ocorian study of offices managing approximately $119.37 billion shows a growing trend toward outsourcing specialized functions. Approximately 77% of respondents expect to increase reliance on third-party providers over the next three years, driven by a need for sophisticated services, lack of in-house expertise, and cost-effectiveness. Key areas for external advice include illiquid investments, cyber-security, and personal finances.

In terms of asset allocation, single family offices significantly increased their stock holdings during the second quarter. According to the CNBC Family Office Portfolio Tracker, public equity allocation rose to 37% of portfolios from 34% in the first quarter, marking the largest quarter-on-quarter increase in several years. This shift toward equities and the artificial intelligence trade coincided with a 3 percentage point reduction in private market holdings, including real estate, private equity, venture capital, and private credit.