Key Observations: UBS Global Family Office Report 2025
In today’s fractious geopolitical environment — shaped by Trump’s unpredictable trade policies and global uncertainty — family offices face new challenges in safeguarding and growing wealth. What does this mean for investment strategy and recruitment for family offices?
The UBS Global Family Office Report 2025 provides insight into how the world’s wealthiest families are navigating volatile markets. Surveying 317 family offices across more than 30 markets, with average family net worth of $2.7bn and each with AUM of $1.1bn, the report captures both their immediate concerns and their long-term convictions.
Three themes stand out from this year’s findings—together with one additional observation on family office recruitment that echoes our thoughts on the unique nature of recruiting for single family offices.
1. Developed Markets and Innovation to the Fore
Family offices have been tilting further toward developed market equities. In 2024, allocations rose to 26%, up from 24% the prior year. Among those making changes in 2025, that figure climbs to 29%, and nearly half (46%) expect to increase exposure over the next five years. Developed market equities remain the most popular asset class.
The attraction is not purely defensive. UBS highlights that public markets currently provide the best access to transformational themes—AI, healthcare, longevity, and the energy transition—with the added benefit of liquidity and legal clarity.
By contrast, emerging market allocations remain subdued: 4% to equities, 3% to fixed income. While India and Mainland China continue to attract interest, concerns about geopolitical risk, regulation, legal frameworks, and currency volatility keep broader enthusiasm in check.
In short, family offices still seek growth, but they want it within a well-regulated and legally sound framework.
2. Alternatives Rebalanced
Alternatives (e.g. private equity, hedge funds, real estate, gold, etc) continue to play an important role (44% of overall portfolios on a global basis) though with subtle shifts.
As noted in our article last year private equity faced some headwinds and allocations fell from 22% to 21% in 2024, and among those planning adjustments this year, are expected to decline further to 18%. UBS points to subdued exits, higher financing costs, and delays in capital deployment—particularly in direct investments, which make up more than 40% of allocations.
By contrast, private debt is steadily rising. From 2% in 2023, average allocations doubled to 4% in 2024 and are projected to reach 5% in 2025. Floating rate yields and diversification benefits are the main attractions.
Real estate (10%) and hedge funds (4%) remain steady, while defensive allocations to short-duration fixed income (26%) and precious metals (19%) provide ballast against uncertainty.
This isn’t a retreat from alternatives – last year’s report showed a 42% allocation – it’s a recalibration.
3. Steady as She Goes
Perhaps the most telling finding is how little has changed in overall risk appetite.
Despite global volatility—including the trade war shocks earlier this year—59% of family offices report no change in portfolio risk, with only 27% reducing exposure and 14% increasing it. Such steadiness speaks to their long-term mindset.
For 2025, the top concerns are a global trade war (70%), geopolitical conflict (52%), and inflation (35%). Looking five years ahead, worries centre on major geopolitical conflict (61%), a global recession (53%), and a debt crisis (50%).
Responses to these risks are measured: active manager selection (40%), greater hedge fund use (31%), and increased allocations to illiquid assets (27%) are favoured strategies.
Governance also shows some signs of progress. 53% of family offices now have a succession plan, up from 47% last year. Still, too many delay planning, and next-generation involvement remains patchy, to say the least—an area where complacency could carry long-term costs.
4. Family Office Recruitment: Personality Fit is Key
As we have highlighted for many years, when it comes to hiring, the report underscores the human dimension with family offices placing a premium on personality fit over “education or qualifications.” In this survey 73% of family offices commented that this is key while 72% highlighted a candidate’s trustworthiness.
It is unsurprising that personal characteristics weigh on the process given the calamitous impact of a bad hire and damage it can cause to the team dynamic of offices which are relatively small in terms of staff (in this survey, family offices employed on average 12 people, but many are much smaller) .
It reinforces the idiosyncrasies of family offices and the importance of avoiding pitfalls when family offices are considering a recruitment exercise.
Final Thoughts
In summary, three key themes emerge from the UBS report this year: a move towards developed markets, a rebalancing within alternatives, and a considered response is noted in the face of geopolitical and economic risk.
This article is written by Paul Avon, Founder and Director of True House Partners. Based in London with a global reach, we specialise in family office recruitment. Established in 2015, we are experts in helping single family office secure the best talent – professionals who not only fit the technical requirements of the role but also align with the unique culture of each family office.