June Roundup

Following a May that highlighted heightened focus on macroeconomic risks and a lean into private assets, June 2025 saw the family office sector continue to navigate global uncertainties with a strong emphasis on strategic risk mitigation. This month, we observe intensified concerns around geopolitical and trade tensions, coupled with significant direct investments, particularly in alternatives. A prominent theme is the critical importance of robust governance, succession planning, and addressing talent acquisition challenges within these sophisticated wealth management entities, alongside continued global expansion into key regional hubs.

Key Topics and Insights

1. Strategic Investments & Portfolio Adjustments

• Private Assets & Alternative Credit Surge: Family offices are significantly deepening their allocation to private markets, with private credit and infrastructure being key focuses. Some are scaling up private equity operations, recognizing these as preferred investment avenues amid market shifts (CNBC.com, The Daily Upside).
• Direct Investing & Venture Capital: Single-family offices remain keen on direct investing, including significant acquisitions (e.g., Digital Global Systems by Casa del Fuego Family Office) and backing tech startups (e.g., drone maker Garuda Aerospace, biotech, geothermal) with new dedicated funds (PRNewswire.com, Axios.com).
• Digital Assets & Crypto Integration: Hong Kong family offices, including a $4 billion entity (VMS Group), made their first forays into cryptocurrency, signaling growing mainstream adoption of digital assets in family portfolios (Yahoo Finance, CoinDesk.com, Bloomberg.com).
• Public Equities & ETFs: While some family offices are shifting away from stocks due to market sentiment, others are actively adjusting positions (e.g., CVA Family Office acquiring NVIDIA shares) or exploring ETFs for investment strategies (MarketBeat.com, InvestmentNews.com).

What this means: Family offices are increasingly sophisticated investors, re-evaluating traditional asset allocations and leaning into less liquid, higher-potential areas like private credit and direct investments, while cautiously integrating digital assets and using ETFs for strategic plays.

2. Governance, Succession Planning & Operating Models

• Succession as a Core Priority: Preparing for succession, navigating the generation gap, and legacy planning for future generations are paramount, with APAC family offices notably ahead in this area (Bloomberg.com, SpearsWMS.com).
• Evolving Operating Models: The future of family offices demands refreshed operating models and legal resilience, with an emphasis on structuring ownership and management for long-term sustainability. Operational excellence is increasingly considered essential (NatLawReview.com, Forbes.com).
• Defining Purpose for Next-Gen Engagement: Research highlights that defining purpose is crucial for unlocking next-generation engagement, reflecting a broader shift towards values-driven wealth management (StockTitan.net, BusinessWire.com).

What this means: Family offices are keenly focused on internal fortitude, prioritizing robust governance and effective succession planning to ensure intergenerational wealth transfer and purpose-driven engagement, acknowledging that strong operational foundations are non-negotiable.

3. Geographical Expansion & Hub Development

• Middle East & Africa as Growth Frontiers: Abu Dhabi is cementing its status as a regional wealth epicenter. European family offices are reallocating capital to the UAE, and Africa is emerging as a new landscape for family office investing (EconomyMiddleEast.com, FamilyWealthReport.com).
• Asia’s Dominance Continues: India’s family office sector is rapidly expanding, reaching around 300 offices in 2024, with a strong focus on global diversification. Hong Kong family offices are active, shifting assets and making new crypto plays. Japan’s family office sector also shows significant growth opportunities (OpenPR.com, Entrepreneur.com).
• Cross-Border Movement & New Offices: Andon Hong Kong opened a New York office amidst a broader Asia family office shift to the US. Rockefeller Global Family Office also added a Fort Lauderdale team, indicating ongoing expansion in the Americas (Crain Currency, FamilyWealthReport.com).

What this means: The global family office landscape is dynamic, with strong growth and continued establishment of key regional hubs, particularly in the Middle East and Asia, and ongoing cross-border movements to diversify and capture opportunities.

4. Evolving Services & Talent Landscape

• Talent Acquisition & Retention Challenges: A significant concern is the struggle to recruit and retain staff for family offices, driving discussions around compensation, talent planning, and how to tackle these challenges (CNBC.com, AI-CIO.com).
• Specialized Advisory & Support: The advisory landscape continues to evolve, with multi-family offices shaping investment strategies for HNWIs and firms focusing on client services and growth challenges (WealthManagement.com, AdvisorHub.com).
• Cybersecurity as a Permanent Fixture: Cybersecurity risks remain a critical focus, with discussions on protecting wealth and the need for robust defenses against threats like data doxxing (FamilyWealthReport.com, BizJournals.com).

What this means: The human capital aspect of family offices is gaining significant attention, with a recognized shortage of skilled professionals. This is driving demand for specialized advisory services and a continued focus on safeguarding digital assets in an evolving threat landscape.

5. Market Outlook & Regulatory Environment

• Geopolitical Uncertainty as Top Concern: Surveys repeatedly highlight geopolitical uncertainty and global trade war as the top concerns for family offices in 2025, influencing shifts in asset allocation and risk management strategies (Investment Executive, FundsSociety.com).
• Evolving Regulatory Scrutiny: While not explicitly detailed in every article, the continued shift of family offices to regions like Dubai (seeking less regulatory pressure) suggests that regulatory environments remain a key factor in strategic decision-making (OpenPR.com).

What this means: Family offices are operating in an environment dominated by macro-level risks. Their strategies are increasingly geared towards robust risk management and adapting to geopolitical shifts, which continues to drive re-evaluation of asset allocations and domiciles.

In Closing and Looking Ahead

June 2025 solidified the trends seen earlier in the year, emphasizing family offices’ sophisticated navigation of a complex global landscape. The shift towards diversified investment strategies, particularly in private credit and direct deals, is a clear response to volatile markets and geopolitical uncertainties like trade tensions. Simultaneously, internal strengthening through enhanced governance structures, meticulous succession planning, and addressing the growing talent gap are becoming paramount for ensuring long-term wealth preservation and growth. The sustained expansion into new geographical frontiers, notably the Middle East and the continued dynamism of Asia, underscores a proactive search for opportunity and favorable operating environments.

Moving forward, we can expect family offices to further integrate advanced technology for efficiency and insights, continue refining their risk management frameworks, and deepen their engagement with impact investing. The competition for top talent will likely intensify, prompting more innovative approaches to recruitment and retention. Additionally, as global wealth continues to grow, we may see more established players and emerging markets vie to become preferred destinations for family office operations, with regulatory incentives playing a crucial role. The continuous evolution of these private wealth powerhouses will undoubtedly shape the future of global finance.