Wealthy families turn to equities and private assets despite rising inflation concerns

Friday 25 September 2026 - 14:14

By: Azzat Manal

Wealthy families turn to equities and private assets despite rising inflation concerns

Wealthy families and their family offices are maintaining an appetite for financial assets despite growing concerns over inflation, interest rates and geopolitical uncertainty, according to Citi Wealth's 2026 Global Family Office Report. The survey indicates that investors are adjusting their portfolios rather than making a broad retreat from risk.

The report, based on responses from more than 350 family offices across more than 40 countries, found that inflation has become the leading investment concern in 2026. Around 63 percent of respondents identified rising prices as a major risk, compared with 37 percent in the previous year's survey.

Interest-rate developments ranked as another significant concern, cited by 44 percent of respondents. Market volatility followed at 34 percent, while 32 percent pointed to the conflict in the Middle East as a factor that could influence investment decisions. At the same time, concerns over trade disputes and tariffs fell sharply, with 18 percent identifying them as a major risk, down from 60 percent in 2025.

Despite the uncertain environment, family offices have not broadly reduced their exposure to growth-oriented assets. Citi said nearly half of the respondents increased their allocation to public equities during the year, making listed stocks the leading destination for new capital. Global developed-market equities were also identified as the most favored asset class for future net allocations.

Private markets remain an important component of these portfolios. Private equity continues to attract capital, while direct investment and growth-stage opportunities are also drawing interest. However, the report indicates that investors are becoming more selective, placing greater emphasis on expertise, access to opportunities and the ability to identify attractive investments.

The survey also suggests that wealthy families are increasingly focused on protecting portfolios against changing economic conditions. Rather than making wholesale changes, many family offices are using more targeted adjustments, hedging strategies and diversification to manage risks while maintaining their long-term investment objectives. More than 40 percent of respondents said they had made no major changes to their portfolios.

The shift comes as financial markets continue to navigate inflationary pressure, volatile interest rates and geopolitical tensions. Recent market data has also shown periods of significant investor caution, with inflation and expectations for further rate increases contributing to outflows from some equity funds.

Citi's findings nevertheless point to a continued focus on long-term growth among family offices. Alongside public equities and private markets, investors are maintaining diversified positions across areas such as fixed income and cash, while increasingly using technology and artificial intelligence to improve investment analysis, reporting and other family-office operations.

The overall picture is therefore one of portfolio adaptation rather than wholesale risk reduction. For wealthy families, inflation and geopolitical uncertainty are reshaping investment priorities, but they have not eliminated interest in equities and private assets as part of longer-term wealth-management strategies.