Funds and Family Offices are looking at assets outside the traditional scope.

What does this represent for those on the other side of the table?

Family offices are undergoing a quiet, yet highly strategic, transformation. Under the leadership of a new generation of heirs, the focus is shifting from direct business management to long-term wealth preservation and growth, with an emphasis on sophisticated governance and allocation into alternative, international, and values-aligned assets.

This shift is driven by three major forces:

• The pursuit of portfolio alignment with values and impact, such as sustainability, innovation, and legacy;
• The need for geographic and sector diversification, with reduced exposure to domestic or industry-specific risks;
• The adoption of modern wealth management practices, including ESG, structured philanthropy, and multi-generational governance.

From traditional assets to customized portfolios

Historically, the majority of family office portfolios were concentrated in:

• Fixed income and public equities, with a focus on liquidity and capital preservation;
• Traditional real estate, valued for its security and moderate appreciation;
• Conservative bonds, serving as a hedge against potential risks.

This model, although still present, is gradually giving way to more sophisticated strategies. According to a recent J.P. Morgan report, only 26% of assets in large family offices remain in public equities, while 46% are already allocated to alternative assets, a shift that reflects not only the pursuit of stronger returns, but also greater control and purpose in allocation.

The most commonly used alternative assets

Below are the assets that have been gaining weight in the portfolios of funds and family businesses:

1. Private Equity

Today, approximately 19% of global family office allocations are concentrated in private equity funds. The appeal lies in the opportunity to participate in companies at strategic growth stages, offering superior returns and lower volatility compared to public markets, especially during periods of macroeconomic uncertainty.

Direct investments have also been increasing, including in unconventional sectors and emerging geographies.

2. Hedge Funds

Diversification and access to specialized strategies continue to make hedge funds a key pillar in portfolios.

Despite their greater complexity, many managers use them as a hedge against systemic volatility and as a source of alpha in high-interest-rate environments.

3. Strategic Real Estate

Allocation in real estate has shifted toward more resilient segments, such as:

• Data centers
• Logistics centers
• Critical infrastructure
• Thematic and mixed-use properties

The real estate sector now exceeds US$5 trillion in assets under management globally and has gained ground as a stable return component with low correlation to other markets.

4. Private debt and infrastructure

With tightening conditions in traditional credit markets, private debt has been attracting capital from funds and family offices seeking returns backed by real collateral and predictable cash flow.

Sustainable infrastructure projects, renewable energy, and clean mobility are also on the radar, as they combine long-term returns with positive impact.

5. Commodities and thematic funds

The growing interest in food, energy, and technological security has also been directing capital toward assets linked to agricultural commodities, strategic metals, and funds with thematic theses such as digital security, water, health, and the bioeconomy.

What changes for those seeking capital?

For entrepreneurs, managers, and companies seeking access to this capital, the main shift is in perspective: it is no longer enough to demonstrate financial returns. It is essential to showcase purpose, governance, and long-term strategic potential.

Family offices and funds are becoming more selective, applying greater rigor in the analysis of risks, business model sustainability, and alignment of values.

Assets outside the traditional core, such as mid-sized companies with scalable models, real assets with positive environmental impact, or projects in strategic sectors, are on the radar. However, it is essential to present yourself with solid structure, data, and a compelling narrative.

The future of wealth management is strategic and personalized.

Allocation to alternative assets reflects a new wealth logic: more global, legacy-driven, and less dependent on traditional investment patterns.

For those aiming to position themselves as a destination for this capital, understanding this dynamic is essential.

Upside Investment helps companies and investors design tailored strategies to raise, protect, and allocate capital intelligently. Contact our team to see how we can support your next move.