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orth American ultra‑wealthy families are shifting their portfolios toward private credit and real estate, moving away from early‑stage startups, Campden Wealth’s 2025 Family Office Report shows. The survey of 317 offices—141 in North America—reveals that private markets now comprise 29% of the average family office portfolio, roughly $62 billion of the $215 billion managed. This change reflects a preference for steadier income; private credit is especially attractive because borrowers offer higher nominal rates, and larger offices often invest through funds or co‑invest with private equity managers.

    Direct private equity, private credit, and real estate are expected to receive the biggest allocation increases in 2025. Real estate remains a core asset, with 75% of offices holding property; industrial/logistics (30%) and residential housing (23%) are the most sought sub‑sectors. Sun‑Belt states, where population and job growth are strongest, outperform the national average, though the report does not give specific figures. Rising affordability pressures are pushing demand toward rentals.

    Early‑stage venture capital is cooling. The report notes that venture, once the top choice, has slipped in rankings after recent weak returns. Many offices cite liquidity and patience concerns; a California single‑family office CEO said that while high‑payoff deals occur only 20‑30% of the time, the goal is to reduce failures.

    Risk‑off sentiment is evident: 48% of offices list improving liquidity as their 2025 objective, 33% aim to de‑risk portfolios. Expected returns for 2025 have dropped to 5% from 11% in 2024, and 15% now anticipate negative returns—a sharp decline in optimism compared to last year.