Family offices pile into public equities as inflation overtakes tariffs as top concern

The world’s wealthiest families are leaning further into public markets — without abandoning private ones. Listed stocks emerged as the preferred destination for future allocations in Citi’s 2026 Global Family Office Report (pdf) as inflation replaced tariffs as family offices’ biggest financial concern. The survey drew responses from 351 family offices across more than 40 countries in June and July.

REMEMBER- The global picture looked rather different a year ago: Citi’s 2025 survey found private equity had the strongest allocation momentum, with 36% of family offices increasing their exposure and just 10% cutting it, as we reported at the time. Back then, trade disputes and tariffs were the biggest concern for respondents.

Inflation is changing the calculus: Nearly two-thirds of respondents in the 2026 survey named inflation as their top concern, followed by interest rates (44%) and the stability of the global financial system (38%). The Middle East conflict came in at 32%, while tariffs fell to 18%. But portfolios are holding up: some 89% of respondents reported positive returns so far this year, up from 84% in 2025, and 41% continue to target annual returns of 7-10%.

And investors are reaching for liquidity: Some 46% of respondents increased their public-equity exposure over the past year, against 12% who reduced it. That momentum looks set to continue: 37% plan to increase allocations to global developed equities over the next 12 months, compared with just 5% looking to cut. Family offices are also more likely to cut private credit than add to it, with the report pointing to default rates at a record 6%.

Gold is getting another look too: Nearly every client conversation now involves gold, Citi Wealth head Andy Sieg told Bloomberg. He said that wasn’t the case two years ago, and the bank is expanding its vault capacity to meet demand.

But private markets aren’t being shown the door: Around 26% of respondents plan to increase allocations to both direct private equity and private equity funds over the next year. Growth equity has the strongest pull within private equity, followed by VC, then secondaries, and finally buyouts.

Family offices in our region are among the most active private equity investors — but global family money isn’t flowing in: Respondents in Europe, the Middle East, and Africa led the increase in private equity allocations over the past year, with 43% raising their exposure against 30% in North America, and direct private equity tops their list of planned increases. Yet more than half of all respondents have no current or planned exposure to the Middle East, and just 3% plan to raise allocations to the region. Middle East-based family offices account for almost half of active private-capital investors in the region, according to BlackRock data we covered last week.

MARKETS THIS MORNING-

Asian markets were mixed in early trading, with Japan’s Nikkei rising around 0.2% and South Korea’s Kospi dipping 1.5%. MSCI’s broadest index of Asia-Pacific shares excluding Japan eased 0.2%. Wall Street was also mixed amid climbing oil prices and uncertainty around the regional war.

THE CLOSING BELL-

The EGX30 fell 1.4% at yesterday’s close on turnover of EGP 7.7 bn (34.4% below the 90-day average). International investors were the sole net buyers. The index is up 26.8% YTD.

In the green: ADIB (+1.8%), CIB (+0.4%), and Valmore Holding -EGP (+0.2%).

In the red: Raya Holding (-7.5%), Rameda (-6.2%), and Misr Cement (-5.1%).