The world’s wealthiest families are piling into private credit — and fast, according to BlackRock’s latest global survey of family offices (pdf). Around 32% of the 175 surveyed say they plan to boost their allocations to the asset class this financial year, more than any other alternative investment.

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Big names and numbers: Alternatives now account for 42% of family office portfolios, up from 39% in 2022-2023. In some cases, private credit alone makes up 15-30% of assets under management. UK b’naires David and Simon Reuben, and Paul Allen’s former family office have already jumped on the private credit bandwagon, Bloomberg reports. BlackRock is also putting real skin in the game, dropping USD 12.5 bn to acquire Global Infrastructure Partners and finalizing a USD 12 bn agreement to acquire private credit heavyweight HPS Investment Partners.

Infrastructure is part of the diversification drive: Over two thirds of family offices are moving to diversify their holdings, and 30% of respondents plan to increase allocations to infrastructure, drawn by the perceived resilience, stable cashflow, and inflation-linked income, tied to areas like decarbonization and AI-fueled data centers.

What’s driving the shift? Traditional 60/40 portfolios are faltering, and PE returns have disappointed. Family offices are gravitating toward asset classes that offer cashflow, downside protection, and attractive returns, rather than illiquid investments with long exit timelines. More than half of respondents are bullish on private credit’s prospects, lured by the promise of higher yields, improved liquidity compared to private equity, and protection from public market swings. Global uncertainty and trade tariffs are also making family offices take a second look at their investment portfolios.

There are still barriers to entry: Some 72% of family offices cited high fees as the biggest challenge of investing in private markets, up from 40% in the last report.

And a lack of transparency: More than half flagged gaps in their internal expertise, especially in private-market analytics, dealsourcing, and reporting. Some are turning to outsourced chief investment officers or deep partnerships to get access to talent, tech, and hard-to-reach agreements. While 45% of family offices are investing in AI-linked options, only a third are using AI internally to improve investment processes due to concerns ranging from poor interpretability and data security to a lack of in-house expertise.

Still holding PE, but warily: While PE remains a major holding for many, some 70% of family offices have an either neutral or bearish approach, citing lackluster exits and delayed capital returns. In response, investors are favoring secondaries, co-investments, and bespoke structures like funds-of-one, and becoming increasingly selective when choosing managers amid high fees.

MARKETS THIS MORNING-

Asian markets are somewhat mixed this morning, as investor sentiment took a hit once again after a rebound across equity markets earlier this week. Japan’s Nikkei, South Korea’s Kospi, and China’s CSI 300 are all up, but Hong Kong’s Hang Seng lost 0.9%

Wall Street futures also point to a less than cheery sentiment as investors await the US Federal Reserve’s interest rate decision today, and amid concerns that the US could join in on Israel’s attacks on Iran.

ADX

9,536

-0.5% (YTD: +1.3%)

DFM

5,372

-0.6% (YTD: +4.1%)

Nasdaq Dubai UAE20

4,351

-0.7% (YTD: +4.5%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.3% o/n

4.2% 1 yr

TASI

10,714

-1.4% (YTD: -11.1%)

EGX30

30,726

-1.0% (YTD: +3.3%)

S&P 500

5983

-0.8% (YTD: +1.7%)

FTSE 100

8834

-0.5% (YTD: +8.1%)

Euro Stoxx 50

5289

-1.0% (YTD: +8.0%)

Brent crude

USD 76.45

+4.4%

Natural gas (Nymex)

USD 3.86

+0.3%

Gold

USD 3414.00

+0.2%

BTC

USD 104,427.60

-3.8% (YTD: +11.5%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.64

+1.1% (YTD: +2.1%)

S&P MENA Bond & Sukuk

144.29

+0.04% (YTD: +3.1%)

VIX (Volatility Index)

21.60

+13.0% (YTD: +24.5%)

THE CLOSING BELL-

The DFM fell 0.6% yesterday on turnover of AED 752.7 mn. The index is up 4.1% YTD.

In the green: GFH Financial Group (+6.3%), Al Ramz Corporation Investment and Development (+6.2%) and Al Salam Bank (+4.8%).

In the red: International Financial Advisors (-9.6%), National Industries Group Holding (-8.8%) and Amlak Finance (-4.2%).

Over on the ADX, the index fell 0.5% on turnover of AED 1.3 bn. Meanwhile, Nasdaq Dubai was down 0.7%.

CORPORATE ACTIONS-

Al Ramz Capital named market maker for Adnoc Distribution: Adnoc Distribution appointed licensed financial institution and market maker Al Ramz Capital as a liquidity provider for the company’s listed shares on the Abu Dhabi Securities Exchange (ADX), according to a bourse disclosure (pdf). Under the one-year agreement, Al Ramz Capital will provide liquidity by maintaining simultaneous buy and sell orders in compliance with ADX and Securities and Commodities Authority regulations.

UAB pushes back rights issue eligibility date: United Arab Bank (UAB) has pushed the eligibility date for its AED 1.03 bn rights issue to 24 June 2025, from 19 June previously, according to an ADX disclosure (pdf). Investors must now complete share purchases by 20 June to meet the ADX’s T+2 settlement window. A revised subscription timeline will be announced shortly.

IN CONTEXT- UAB invited shareholders earlier this month to subscribe to a rights issue — signed off in March — to raise capital from AED 2.06 bn to AED 3.09 bn. The bank will offer 1.03 bn new shares at AED 1 each to shore up its balance sheet and fund future growth. First Abu Dhabi Bank is lead manager and bookrunner, while Al Tamimi & Co is counsel.

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