Across the quiet rooms where the world's wealthiest families manage their fortunes, a long-held faith in stocks and bonds as twin anchors is loosening. Driven by worries about stubborn inflation, shaky interest rates and markets that seem to move together, single-family offices now hold more of their money in alternatives than in traditional assets for the first time, a shift documented by BNY Wealth and echoed across Asia and beyond. It is a turning toward hedge funds, private equity and infrastructure in search of steadier ground, even as the old holdings remain part of the picture.
Wealthy Investors Pile Into Alternatives as Family Offices Shift Beyond Stocks and Bonds
Improved access does not equal liquidity.
Mark
Sixty percent in alternatives. Why does that number land so hard?
Mimi
Because it flips the order. BNY Wealth says single-family offices now hold more in alternatives than in traditional assets, which sit at 41 percent.
Luke
Worth noting that it's one firm's report, and the source gives no detail on how the sample was built. The 60 and 41 also add past 100, and the story doesn't explain why.
Mark
What's driving the move?
Mimi
Inflation tops the list in Citi's survey of 351 family offices, then interest rates, financial system stability and volatility. Bonds and stocks moving together also weakens the old hedge.
Mark
Is anyone actually selling stocks to do this?
Mimi
Not much, according to Woods. He says the new money mostly comes from fresh capital and excess cash. Citi found public equities had the strongest net allocation increase.
Luke
That's Woods's characterization, and the story doesn't give a figure for how much is fresh money. The Citi survey result supports the point, but it's still a survey of intentions in part.
Mark
And the risks?
Mimi
Liquidity first. Watkins says improved access does not equal liquidity, and semi-liquid funds can gate withdrawals. Guyot adds that data centers held across three fund types is still one AI bet.
Luke
Also, the 40 percent JPMorgan growth is for one unit in Asia-Pacific. It says nothing about the global picture, and the story doesn't say what base it grew from.
Der Puls
- Single-family offices now hold 60 percent of portfolios in alternatives, overtaking the 41 percent held in traditional assets for the first time.
- Stocks and bonds have moved in step, eroding the cushion that once let one offset the other when markets turned.
- Inflation fears and rate uncertainty are pushing wealthy clients toward hedge funds, private credit and infrastructure at speed.
- AI-driven demand for data centers and power networks is pulling infrastructure inflows up roughly 30 percent year on year, creating a crowded bet.
- Advisers warn that semi-liquid funds can lock up or limit withdrawals when redemptions surge, and that private assets may look calmer than they are.
- Public equities still drew the strongest net allocation gains, so the move reads as an expansion rather than an exodus from markets.
Across the quiet rooms where the world's wealthiest families manage their fortunes, a long-held faith in stocks and bonds as twin anchors is loosening. Driven by worries about stubborn inflation, shaky interest rates and markets that seem to move together, single-family offices now hold more of their money in alternatives than in traditional assets for the first time, a shift documented by BNY Wealth and echoed across Asia and beyond. It is a turning toward hedge funds, private equity and infrastructure in search of steadier ground, even as the old holdings remain part of the picture.
For the first time, alternative investments make up more of a typical single-family office portfolio than traditional assets do. BNY Wealth puts the alternatives share at 60 percent, against 41 percent for stocks, bonds and conventional holdings, and CNBC's account traces how the world's richest investors are rethinking where their money sits.
The push comes from volatility and fears of stubborn inflation. JPMorgan Asset Management reports its Asia-Pacific private wealth alternatives grew 40 percent in a year, and Lombard Odier's Asia chief says family offices are sharply raising planned allocations. Their worries include concentrated equity markets, high valuations, tight credit spreads, geopolitics, and stocks and bonds moving together, which weakens the old protection between them.
Hedge funds draw the most interest, valued for returns less tied to the direction of equities, while private credit offers contractual income. Infrastructure is the other big winner, carried by the AI boom's demand for data centers, electricity and connectivity, with open-ended infrastructure fund inflows up 30 percent year on year.
The risks are real. Private capital can be locked up for years, semi-liquid funds may limit withdrawals when requests surge, and hidden concentration can leave a portfolio exposed to the same AI cycle under different labels. Still, public equities saw the strongest net gains, and much of the new money is fresh capital rather than sales of stocks and bonds. The open questions are how semi-liquid funds hold up under pressure and how much of this capital is quietly riding on a single bet.
For the first time, alternative investments make up more of a typical single-family office portfolio than traditional assets do. BNY Wealth puts the alternatives share at 60 percent, against 41 percent for stocks, bonds and other conventional holdings. The figures come from the firm's report and are cited in CNBC's account of how the world's richest investors are rethinking where their money sits.
The money is moving into hedge funds, private equity and infrastructure. Industry watchers point to market volatility and fears of stubborn inflation as the push behind it. Dan Watkins, regional chief executive of JPMorgan Asset Management, said the firm's private wealth alternative assets in Asia-Pacific grew 40 percent over the past 12 months. Speaking at a media summit in Singapore, he described a huge appetite for alternative exposure among high-net-worth and ultra-high-net-worth clients.
John Woods, Lombard Odier's chief investment officer for Asia, said the family offices he speaks with are sharply increasing their planned allocations to alternatives. He listed the worries behind it: equity markets that are increasingly concentrated, elevated valuations, tight credit spreads, geopolitical uncertainty, and a growing correlation between stocks and bonds that weakens the old protection one gave the other. Investors want diversification, income, and access to assets outside listed markets.
Hedge funds are drawing the most attention. Olaolu Aganga, head of portfolio construction and analytics at Citi Wealth, said they have attracted the strongest recent interest among qualified clients, who want returns less tied to the direction of equities. Private credit appeals for its contractual income. Woods noted that some hedge fund strategies aim to profit from performance gaps between companies rather than from broad rallies. Citi's 2026 survey of 351 family offices ranked inflation as the top concern, followed by interest rates, financial system stability and market volatility.
Infrastructure is the other big beneficiary, driven by the artificial intelligence boom and its demand for data centers, electricity networks and digital connectivity. Thomas Roland Guyot of UBS Unified Global Alternatives said investors are targeting assets tied to AI, electrification and energy security, which can offer long-term growth and fairly predictable cash flows, especially where revenue rests on essential demand or long-term contracts. PitchBook data cited by UBS show net inflows into open-ended infrastructure funds rose 30 percent year on year in the 12 months through the first quarter of 2026.
Private equity remains a cornerstone, though investors are more selective. Aganga said family offices increasingly favor direct investments in companies, co-investments alongside private equity managers, and purchases of existing fund stakes on the secondary market, instead of relying only on traditional pooled funds. Woods said these routes can give more control or a chance to buy at a discount. Evergreen and semi-liquid funds have also lowered minimum investments and eased some of the administrative burden of private-market funds.
The risks are real. Private investments can lock up capital for years, and valuations may be slow to reflect worsening conditions. Even semi-liquid funds can limit withdrawals when redemption requests surge. Watkins put it plainly: improved access does not equal liquidity. Aganga warned that results vary widely between managers and that private assets can look less volatile than they are because they are priced less often. Guyot cautioned about hidden concentration: a portfolio holding data centers through real estate, infrastructure and private equity funds may look diversified while remaining exposed to the same AI investment cycle.
The shift is also not a wholesale exit from public markets. Citi's survey found public equities recorded the strongest net increase in allocations, and Woods said it is not a rotation away from them. He added that much of the new alternatives money comes from fresh capital and excess cash rather than large sales of stocks and bonds. The questions to watch are how semi-liquid funds behave if redemptions climb, and how much of this capital is quietly riding on the same AI bet.
Bemerkenswerte Zitate
Improved access does not equal liquidity.— Dan Watkins, regional CEO, JPMorgan Asset Management
This is not a wholesale rotation away from public markets.— John Woods, chief investment officer for Asia, Lombard Odier
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