What Are the Ultra-Wealthy Investing In? Private Equity and Crypto Steal the Show, Stocks Take a Backseat
The 2025 Single Family Office Investment Insights report by BNY Mellon Wealth shows family offices are leaning into private equity, increasing digital asset investments, while reducing stock allocations.
The report found that two-thirds of family offices managing over $1 billion in assets plan to ramp up private equity fund allocations this year, a nearly 70% jump from 2024. Meanwhile, public stocks make up about 19% of their investable assets, down 28% from last year.
Conducted early in 2025, the report also revealed a shift in attitudes toward crypto. 74% of surveyed investors said they’ve either invested or are exploring digital assets, spurred by the launch of the first Bitcoin ETF and Donald Trump’s pro-crypto stance during his campaign and election as U.S. president.
Sinead Colton Grant, BNY Mellon Wealth’s CIO, noted, “Regulatory clarity is key—it’s really helping drive [crypto] allocations.”
The report highlighted investor concerns about geopolitical risks and inflation, with U.S. firms particularly wary of rising prices. Against this backdrop, over 60% of firms managing assets over $1 billion are eyeing increased real estate investments this year. Unsurprisingly, artificial intelligence emerged as a major investment theme for the coming years.
The survey included 282 investment professionals from family offices worldwide, managing assets ranging from $250 million to over $5 billion.
Previously, another report from BEV Capital echoed similar findings.
The report highlighted that family offices are broadening their portfolios to include alternative assets like private equity, hedge funds, and real estate, which make up 44% of their holdings. Private equity (18%), real estate (16%), and hedge funds (10%) account for the largest shares. Notably, 57% of family offices plan to increase their real estate holdings in 2025.
Additionally, different regions showed distinct strategic priorities:
- Asia-Pacific: Tech and cybersecurity investments are at the forefront, with 72% of family offices having faced cybersecurity breaches. As a result, improving IT infrastructure and protecting digital assets have become key investment focuses.
- Europe, Middle East, and Africa (EMEA): Family offices here prioritize corporate governance, ESG (environmental, social, and governance) integration, and sustainable investing. Regulatory pressures are pushing for more comprehensive risk management frameworks.
- North America: North American family offices focus heavily on private equity and venture capital while emphasizing digital transformation to boost operational efficiency. In this investment shake-up, risks and opportunities are increasingly intertwined.
In this investment shake-up, risks and opportunities are increasingly intertwined.
Private equity’s high entry barriers and long timelines demand deep industry insight and patience. Crypto markets, thawing thanks to ETFs and looser regulations, still spook some conservative investors with Bitcoin’s wild swings in early 2025.
The cooling interest in stocks reflects global economic uncertainty—the S&P 500’s choppy start to the year, tech stock bubble fears, and supply chain crises tied to geopolitics are pushing family offices to rethink risk exposure.
Whatever, The core of 2025’s ultra-wealthy investment strategy is shifting toward “diversification, active management, and forward-looking positioning.” Going forward, portfolios blending stable returns with innovative potential may become the new model for preserving family wealth. Striking a balance between emerging tech and traditional assets will test the wisdom and boldness of the world’s top investors.