The strong performance of alternative assets is driving a long-term switch to investing in alternatives for the family office sector, new global research from Ocorian, a provider of services to high net worth individuals, family offices, financial institutions and asset managers. 

Its international study with more than 130 family office investment managers, responsible for around $62bn of assets under management, found almost all agree that the sector is increasingly investing in alternatives and the switch is a long-term trend. Around 42% strongly agree with the view. 

The alternative asset classes seeing the most benefit from the switch in allocations are likely to be real estate and private debt – the study found a third (34%) say their funds will increase allocations to real estate by 50% or more while 33% will make the same increase in allocations to private debt. 

Amy Collins, head of family office at Ocorian, said: “There is a growing interest in alternative asset classes such as private equity, real estate, and hedge funds. Whilst these asset classes offer the potential for higher returns, they also require a higher level of expertise and specialised knowledge.”