Investment considerations for single family offices 2025
We identify the five considerations that we believe single family offices should keep at the forefront as they look ahead.
The trajectory of global interest rates and inflation have dominated the global market narrative in 2024, as markets gauged the outlook for a soft landing across the global economy.
With that soft landing now seemingly within reach, single family offices (SFOs) have an opportunity to refine their strategies for a new macroeconomic environment.
Following a period of intense short-term volatility, we believe market conditions have stabilised sufficiently to refocus on long-term risks. This pivot toward long-term considerations is especially relevant for investors with extended investment horizons, highlighting the importance of a strategic approach to capturing sustainable growth and managing enduring risks. Our 2025 Themes and opportunities paper emphasises the need for agile strategies to address emerging risks and seize opportunities amid a "higher-for-longer" interest rate environment and an uncertain growth outlook. Additionally, it explores how the convergence of concentration risk in global equity markets, advancements in AI technology and climate transition efforts are intensifying potential volatility across portfolios.
As the landscape evolves, it is critical for SFOs to consider how they are achieving diversification and flexibility across a fast-changing economic environment. We see four key opportunities ahead for SFOs seeking to enhance resilience, both for the current landscape and for the long term.
In the current market, hedge funds can also be a driver of absolute returns and diversification. The flexibility of these strategies can potentially enable SFOs to capitalise on market volatility and dislocations, making them a valuable alternative to fixed income, particularly in a relatively higher-rate environment.
Family offices’ long-term posture and outlook position portfolios to embrace volatility, exploit market inefficiencies and invest in thematic megatrends such as climate change, AI, and demographic shifts for sustained growth. Diversification across asset classes and geographies, while aligning investments with family values, can potentially help SFOs preserve wealth and capitalise on new opportunities.
We recommend considering the following four opportunities:
- Next-generation infrastructure
- Hedge funds
- Embrace volatility
- Being on the right side of history
Top considerations for single family offices 2025
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