Nearly 50% of Family Office Portfolios Are Allocated to Private Markets, According to an IE University Report

Family offices allocate an average of 48.2% of their portfolios to private markets. More than half expect to increase their exposure over the next five years, while none expect to reduce it. The trend is even more pronounced in Spain, where 68.1% of the family offices surveyed expect to increase their allocation to these assets, making them a central component of their investment strategies.

These are among the key findings of the report The Evolution of the Family Office in Private Markets: From Entrepreneurial Families to Strategic Investors, the first study by the IE Family Offices Knowledge Hub. Supported by IE University (through IE Foundation), Cuatrecasas, Franklin Templeton and OpenWealth (CaixaBank Group), the research draws on an international survey of 157 single-family offices across Europe, North America, Latin America, Asia and the Middle East, 27 in-depth interviews, and an analysis of historical investment data.

The report was presented at IE Tower, IE University's campus in Madrid, to family office representatives and industry professionals from several countries. The event featured Carlo Bonomi, Managing Director of Investindustrial, who shared his experience and insights into the evolution of family offices as investors in private markets.

The study finds a close relationship between exposure to private markets and the development of in-house capabilities. The average allocation to private markets increases from 44.9% among family offices with one or two investment professionals to 62.9% among those with teams of six or more. By asset class, private equity (16.1%) and real estate (15.1%) account for the largest shares of portfolios. More than 60% of respondents report being satisfied or very satisfied with the returns they have achieved. These investors also have a clear international focus: none of the family offices surveyed invests exclusively in its domestic market. 

Governance, Processes and Capabilities

Cristina Cruz, Academic Director of the IE Family Offices Knowledge Hub, says: "Family offices have already incorporated private markets into their portfolios. The real challenge now is not how to access more opportunities, but to build the governance, processes and capabilities that will enable them to evolve from business families into strategic investors. Our study shows that this evolution does not happen overnight. It is a learning process through which families gradually develop the capabilities they need to invest with discipline and sustainably."

Unlike studies that focus exclusively on asset allocation, this report examines how family offices make investment decisions and how their capabilities evolve as they gain experience. The findings show that greater professionalization does not necessarily mean less family control: in 52% of family offices, the family makes the final investment decision, while only 10% delegate this responsibility entirely. In Spain, family members make the final investment decision in 61% of the family offices surveyed.

Beyond portfolio data, the report identifies four stages of learning through which business families evolve into strategic investors in private markets. Based on this analysis, the IE Family Offices Knowledge Hub proposes four practical frameworks: an investment policy, a governance model, a capital cycle management system, and a wealth architecture. These frameworks are designed to help families build sustainable investment structures for the long term.

"Family offices are evolving towards increasingly sophisticated wealth management models. This transformation requires private market investments to be part of a holistic approach to wealth, supported by robust governance and long-term planning. At OpenWealth, we help business families navigate this process through a wealth advisory service that combines experience, specialist expertise, and a comprehensive view of family wealth," says Marta Alonso, Managing Director of OpenWealth (CaixaBank Group).

"Family offices are a unique category of investor, with their own objectives, time horizons, and decision-making processes. Studies such as this one allow us to explore their needs in greater depth, identify how their priorities are changing, and better understand the challenges and opportunities they face. In an increasingly complex private markets ecosystem, asset managers play a key role not only in providing access and infrastructure, but also in helping families develop their investment capabilities and evolve their programmes towards more sophisticated and diversified strategies," says Javier Villegas, Head of Iberia and Latam at Franklin Templeton.

"The challenge for family offices is no longer simply to identify investment opportunities. They must also establish the legal and governance structures needed to manage wealth with a view to ensuring continuity across generations," says Carlos Ferrer, partner at Cuatrecasas.

The Spanish Family Office Perspective

The analysis of Spain reveals a young family office ecosystem with a well-established commitment to private markets. A total of 41.2% of the family offices surveyed were established after 2015, and 53% belong to first-generation families. Despite their shorter track record, 71.7% invest in private markets, allocating an average of 47.2% of their portfolios to these assets. Within this allocation, real estate ranks first at 16.2%, followed by private equity at 13.2% and venture capital at 10.5%. The allocation to venture capital is significantly higher than in the rest of the sample. 

The outlook is also clearly expansionary: 68.1% expect to increase their exposure over the next five years, compared with 53.4% of the international sample. Satisfaction with returns is particularly high: almost one in four respondents (23.5%) are very satisfied, compared with 7.1% in the rest of the sample.

Professionalization does not necessarily mean less family involvement in investment decisions. In Spain, family members make the final investment decision in 61% of the family offices surveyed. 

About the IE Family Offices Knowledge Hub

The IE Family Offices Knowledge Hub is an initiative by IE University (through IE Foundation), Cuatrecasas, Franklin Templeton and OpenWealth. It aims to support the development of family offices through rigorous research, applied knowledge and the exchange of experience among business families, professionals and experts.