FAMILY OFFICES: Family offices steady the course as trade tensions test global portfolios, Citi reveals

Despite the multiple challenges of trade frictions, slowing growth and shifting regulatory signals, family offices remain steady in their investment approach, according to new research.

Citi Wealth has published its 2025 Global Family Office Report with responses from a record 346 family offices across 45 countries, representing both new and multi-generational wealth. It shows that’s that asset allocations were largely unchanged compared to last year, with private equity standing out as the most favored area of fresh capital.

Citi notes that family offices with more than $500 million AUM were particularly inclined to increase allocations to alternatives.

Half of respondents expect portfolio gains in the range of 5-10% for this year, with 30% projecting 10-15%, and an optimistic 8% anticipating returns above 15%. However, sentiment toward specific asset classes was more muted, with neutral views across equities, credit and real estate.

“These are exciting times for family offices worldwide,” says Hannes Hofmann, head of Citi Wealth’s Global Family Office Group. “These sophisticated clients are finding new ways to address their families’ ever-increasing expectations. Our 2025 report highlights how they are refining priorities, reimagining their operations and seeking to build resilient portfolios. We are proud to partner with them, drawing upon Citi’s global reach and deep resources to help them seize potential opportunities and achieve their ambitious goals.”

Following the US tariff announcements in April, nearly two thirds of respondents said their family office made tactical adjustments to reinforce resilience, led by active management, while many shifted toward defensive sectors, geographies or hedging strategies. Larger offices were more inclined to rotate to safe-haven regions, while smaller peers tended to adjust sector allocations.

Direct investing remains key with seven in ten offices active in private deals, and four in ten said they had increased allocations over the past year.

Growth and early-stage companies drew the greatest attention, though secondary transactions gained traction amid subdued IPO activity.

“Family offices globally remain highly focused on direct investing, as they seek exposure to the key transformative technologies of tomorrow and attractively valued companies across sectors,” notes Dawn Nordberg, head of Integrated Client Engagement for Citi Wealth.

The report highlights persistent gaps in operational risk management, cybersecurity, and succession planning. More than half of respondents acknowledged under-preparedness on non-investment risks despite steady progress in professionalizing investment functions.

“Our survey reveals ongoing professionalization among family offices, particularly in the investment function,” noted Alexandre Monnier, Head of Global Family Office Advisory for Citi Wealth. “It also identifies areas where further development is crucial, such as risk management and talent acquisition for non-investment services.”

The proportion of offices using AI has nearly doubled since last year, primarily for automating operational tasks and enhancing investment analytics, but full integration across governance and compliance functions remains a work in progress.

Family offices also continue to weigh outsourcing for efficiency, particularly in specialist areas such as cybersecurity and legal services, but decision-making authority overwhelmingly remains in-house, with investment calls most often made by family principals or dedicated CIOs.

The survey was launched at Citi’s Family Office Leadership Summit in Ossining, New York, where 150 leaders managing an average $3.8 billion in net worth gathered to debate markets, AI, healthcare and succession planning.