Biggest Fans Of Alternatives? Family Offices, UHNW Clients

Charles Paikert

30 June 2025

Although a backlash may be brewing as purveyors of alternative investments step up their marketing assault on the retail market, family offices and the UHNW market remain safe havens for the asset class, albeit with considerable caution.

“We remain optimistic that private investing will deliver outsized returns over public markets, although we are monitoring the evolution of the space,” said Jack Ablin, chief investment officer and founding partner of Chicago-based multi-family office (which is heavily pushing alternative products) shows alternatives making up 42 per cent of assets in family office portfolios, up 3 per cent from a similar survey two years ago.

At , where the “average family” has approximately $180 million under advisement at the firm, clients may have as much as 35 per cent of their portfolios allocated to alternatives, including private investments and hedge funds, according to managing partner Michael Zeuner. A general target allocation in alternatives for Market Street Trust Company’s ultra-high net worth families, who on average have nearly $50 million under management at the firm, ranges from approximately 15 per cent to 20 per cent, said chief investment officer Marc Dizard.

While skepticism of alternatives has mounted as giant Wall Street firms escalate their marketing campaigns to sell alternatives into the retail and 401(k) retirement markets, family offices and wealth managers catering to UHNW clients continue to add private equity, private credit, hedge funds, venture capital and other non-publicly traded vehicles.

Increasing allocation
Surveys by both said at last week’s Morningstar Investment Conference, “Why are we so pig-headed to think the products of today will exist in their current form for the next 20 years?”