Family offices keep calm and hold steady as tariffs bite: Global family offices sat tight through a year of tariff tremors, inflation worries, and geopolitical noise, choosing resilience over reallocation, according to Citi Wealth’s 2025 Global Family Office report (pdf). The report surveyed 346 family offices — 23% of which are from EMEA — with an average net worth of USD 2.1 bn.

Private equity takes the crown: Allocations to private equity rose sharply, with 36% of respondents saying they boosted exposure and only 10% cutting back — a net increase of 26%. Growth equity drew the biggest share (28%) of fund allocations, followed by buyouts (21%) and venture capital (19%).

Direct transactions stayed hot: 70% of family offices said they’re active, with four in 10 stepping up activity last year. The sweet spot? Growth (52%) and early-stage companies (37%) remain the most popular targets, while secondaries (30%) outpaced pre-IPO transactions (22%), as families looked for liquidity amid a stalled IPO market.

Public equities still account for the largest share of portfolios, with a 27% average allocation, followed by private equity (20%, split between funds and direct), fixed income (15%), real estate (14%), and banknotes and equivalents (13%). Alternatives such as hedge funds (5%), private credit (3%), and commodities (1%) round out the mix. Meanwhile, digital assets are still marginal at just 1%.

EMEA families dialed up allocations to both banknotes and bonds — popular at times of volatility — signaling a more cautious stance, with fixed income allocations rising to 19% and banknote holdings up by four percentage points. Meanwhile, PE allocations stood at just 22%, the lowest of any region.

Other regional trends worth noting:

  • Asia Pacific offices sat on the highest liquidity buffers, with banknotes at 18% of portfolios amid tariff uncertainty;
  • Latin America leaned into private equity (24% allocation) and trimmed both banknotes and bonds;
  • North America remained equity-heavy, with public markets at 29% and real estate allocations (funds + direct) reaching 18%.

Returns? Still bullish. Nearly half of respondents expect returns of 5-10% this year, while another 30% are anticipating 10-15% returns. Larger offices are more optimistic: 10% of those with more than USD 500 mn in AUM anticipate gains above 15%. Negative return expectations were almost nonexistent across all regions. Meanwhile, only 70% of EMEA respondents expected portfolio returns above 5%, compared with nearly 90% in other regions.

Risks shift: Trade disputes and tariffs topped the worry list (60%), pushing last year’s bogeyman — interest rates — into fourth place. US-China relations (43%) and resurgent inflation (37%) rounded out the top concerns. By contrast, wars in the Middle East (14%) and Ukraine (9%) were seen as lesser risks than in 2024, suggesting investors feel markets have already priced them in.

Professionalization gap: Investment functions are getting sharper, with more family offices adopting investment committees and policy statements. But gaps remain elsewhere: 58% flagged shortcomings in risk management and cybersecurity, and nearly three-quarters still lack formal succession planning. Family unity and next-gen prep were also identified as major service gaps — despite being top-of-mind for principals.

Tech and AI edge in: Artificial intelligence is no longer hypothetical: 22% of offices said they’re already using AI for investment analysis or forecasting, and another 22% said they use it for automating operational tasks. But adoption is far from universal, with barriers ranging from lack of expertise to cybersecurity fears.

REMEMBER- Family offices surveyed by Goldman Sachs survey are rotating heavily into public equities (31%) while trimming private equity (21%), with strong exposure to AI and rising crypto holdings, particularly in APAC. Risk views also diverge, with Goldman Sachs respondents most concerned about geopolitical conflict. Overall, respondents in the Goldman Sachs survey showed a “pro-risk” tilt, while Citi’s survey respondents shifted towards boosting resilience and governance gaps.

MARKETS THIS MORNING-

Asian markets are mostly in the green this morning, save for Hong Kong’s Hang Seng, which fell marginally in early trade. Meanwhile, China’s CSI 300 was flat. Over on Wall Street, futures are little changed as investors await unemployment data set to be published today.

TASI

11,426

+5.1% (YTD: -5.1%)

MSCI Tadawul 30

1,495

+5.7% (YTD: -1.0%)

NomuC

25,608

+1.2% (YTD: -18.6%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

4.75% repo

4.25% reverse repo

EGX30

35,949

+1.8% (YTD: +20.9%)

ADX

9,978

-1.3% (YTD: +5.9%)

DFM

5,872

-1.5% (YTD: +13.8%)

S&P 500

6,638

-0.3% (YTD: +12.9%)

FTSE 100

9,250

+0.3% (YTD: +13.2%)

Euro Stoxx 50

5,465

-0.1 (YTD: +11.6%)

Brent crude

USD 69.10

-0.3%

Natural gas (Nymex)

USD 2.88

+0.6%

Gold

USD 3,773

+0.1%

BTC

USD 113,089

+0.6% (YTD: +20.9%)

Sukuk/bond market index

916.61

+0.1% (YTD: +1.6%)

S&P MENA Bond & Sukuk

150.63

0.0% (YTD: +7.6%)

VIX (Volatility Index)

16.18

-2.8% (YTD: -6.7%)

THE CLOSING BELL: TADAWUL-

The TASI rose 5.1% yesterday on turnover of SAR 14.5 bn. The index is down 5.1% YTD.

In the green: Alinma (+10.0%), Dar Alarkan (+10.0%) and Albilad (+10.0%).

In the red: MBC Group (-2.2%), Malath Insurance (-1.4%) and Amlak (-1.2%).

THE CLOSING BELL: NOMU-

The NomuC rose 1.2% yesterday on turnover of SAR 40.5 mn. The index is down 18.6% YTD.

In the green: Almuneef (+14.9%), Balady (12.0%) and Bena (+9.4%).

In the red: Balsm Medical (-5.3%), Meyar (-5.0%) and Shalfa (-4.6%).

Tags: