IE Family Offices Knowledge Hub Presents First Report on Evolution of Family Offices

In line with its mission to contribute to developing family offices through research, applied knowledge and exchange of experiences among business-owning families, professionals, and experts, the IE Family Offices Knowledge Hub—an IE University initiative supported by Cuatrecasas, Franklin Templeton and OpenWealth—has presented "The evolution of the family office in private markets: from business-owning families to strategic investors.” This is the first report on the subject, based on an international survey of 157 single family offices in Europe, North America, Latin America, Asia and the Middle East; following 27 in-depth interviews, and an analysis of historical investment data.

According to the study, family offices allocate an average of 48.2% of their portfolios to private markets. Over half plan to increase their exposure during the next five years and none expect to reduce it. In Spain, this trend is even more pronounced: 68.1% of surveyed family offices plan to increase their allocation to private markets, making them a central part of their investment strategy.

The study shows a close relationship between exposure to private markets and the development of internal capabilities. The average allocation to private markets increases from 44.9% among family offices with one or two specialized professionals, to 62.9% among those with teams of six or more people.

By asset class, private equity (16.1%) and real estate (15.1%) account for the largest shares. Over 60% of those surveyed report being satisfied or highly satisfied with the returns. The sample also reflects a clear international orientation: none of the family offices invest exclusively in their domestic market.

Unlike studies focused exclusively on asset allocation, the report examines how family offices make their investment decisions and how their capabilities evolve as they gain experience. The results indicate that professionalization does not necessarily imply a loss of family control: in 52% of the cases, the final decision remains in the hands of the family, and only 10% fully delegate this responsibility. In Spain, the final investment decision rests directly with the family members in 61% of the family offices surveyed.