(Relve Financial)
Global Insights
Understanding the forces reshaping wealth, markets and society empowers better decision-making.
Relve Financial insights offer clarity for families navigating an increasingly interconnected world.
Geopolitical Risk: The New Investment Reality
L . Yates – August 2025
Geopolitical instability has moved from background concern to primary investment consideration. As of 2025, 84% of family offices now identify geopolitical risk as critical to their capital allocation decisions (Ocorian). This is the highest level recorded in years. The landscape has fundamentally shifted: tensions between major powers, economic decoupling strategies, sanctions regimes and protectionist trade policies are no longer theoretical risks but active forces reshaping markets daily.
The implications extend far beyond headline volatility. Families with international exposure face tangible challenges including forced divestments from certain regions, disrupted supply chains affecting portfolio companies and rapidly evolving regulatory environments that can render existing structures inefficient or non-compliant overnight. Currency volatility driven by geopolitical events creates additional complexity for cross-border wealth, while information exchange agreements and transparency initiatives increase privacy risks for families who haven’t proactively reviewed their structures.
What distinguishes sophisticated family offices in this environment is their approach to risk management. Rather than reacting to crises, leading families are embedding geopolitical scenario planning directly into portfolio construction and ongoing governance. This means:
- Stress-testing portfolios against specific geopolitical scenarios (trade wars, sanctions, regional conflicts)
- Diversifying custody locations and legal structures to reduce single-jurisdiction dependency
- Maintaining currency hedging strategies that account for geopolitical volatility, not just economic factors
- Regular reviews of ownership structures in regions facing regulatory tightening or sanctions risk
- Building relationships with advisors who monitor cross-border regulatory developments proactively
Governance Maturation: Closing the Professionalization Gap
A . Hill – September 2025
Family offices consistently express aspirations for top-quality governance, yet execution lags ambition. Persistent gaps remain between stated objectives and operational reality, particularly around succession planning, next-generation engagement and formalized decision-making frameworks. The consequences of weak governance manifest in family conflict, portfolio drift away from stated objectives and missed opportunities when decision-making paralysis prevents timely action.
The trend toward professionalization is accelerating. Formal investment committees with defined membership, decision-making authority and regular meeting cadence are becoming standard practice among leading family offices. Family constitutions provide neutral frameworks when emotions run high. They become more than legal formalities, shifting into practical tools that prevent disputes and create clarity around expectations as families navigate generational transitions.
Governance priorities for 2025:
- Formal investment committees and family councils gaining adoption
- Family constitutions providing frameworks for multi-generational continuity
- Next-generation education emphasizing stewardship over literacy
- Professional management supplementing family talent with external expertise
- Values-based investing alignment reducing family conflict over strategy
Next-generation preparation has emerged as a top priority, driven by the reality that an estimated $84 trillion will transfer hands over the coming decades according to industry research (Cerulli). The most effective programs move beyond financial literacy to cultivate stewardship mindsets through experiential learning. Shadow boards where younger family members debate real investment decisions with allocated capital and structured involvement in philanthropy create pathways for meaningful engagement before high-stakes wealth transfer occurs. Notably, BNY’s survey reveals that talent acquisition and retention have become critical concerns, with a 50% increase in families prioritizing this area over the past year as offices compete for sophisticated investment professionals (BNY).
Technology and Sustainability: Where Capital Meets Conviction
N . Betton – October 2025
The intersection of technology innovation and sustainability is redefining investment opportunity sets for forward-thinking families. According to BNY’s 2025 research, generative AI has emerged as a top-conviction theme, with investment professionals ranking it among their highest priorities for the next five years (BNY). Survey data shows that more than half of family offices are prioritizing portfolio resilience (Schroders). An emerging strategy being employed by more family offices is using AI to support investment decision-making, applying machine learning to portfolio optimization, risk management and due diligence processes. This enthusiasm extends beyond AI as a tool. Families are actively deploying capital into AI infrastructure, enterprise software and applications spanning healthcare, climate technology and digital transformation.
Sustainability has evolved from a niche consideration to mainstream allocation priority. ESG integration is now about identifying companies positioned to benefit from decarbonization, resource efficiency and regulatory tailwinds favoring sustainable business models. Family offices are increasingly sophisticated in evaluating impact investments, seeking measurable outcomes alongside competitive returns rather than accepting concessionary economics for the sake of mission alignment. The rise of climate tech, renewable energy infrastructure and circular economy business models creates tangible opportunities for families to deploy capital where financial returns and environmental impact converge.
The technology transformation extends to operations as well. Families are investing in portfolio management platforms, automated compliance monitoring and consolidated reporting systems that deliver institutional-quality transparency across diverse holdings. However, BlackRock notes that adoption faces hurdles including data privacy concerns, talent acquisition challenges and the complexity of integrating technology across legacy systems (BlackRock).
The families making meaningful progress are those willing to commit resources to the organizational change required to leverage them effectively.
Investment themes gaining traction include generative AI and enterprise software infrastructure, healthcare innovation including digital health and biotechnology, energy transition infrastructure and associated electrification, operational necessities as in cybersecurity and data privacy solutions and the ever-touted ESG integration of enterprises in accordance with increasing accountability.
Private Markets Dominance: Direct Investing Accelerates
N . Betton – November 2025
Private equity continues its reign as the cornerstone of family office portfolios, but the approach to accessing these returns is evolving rapidly. BlackRock’s 2025 report states 70% of family offices expect to increase allocations to illiquid alternatives over the next twelve months, with private equity leading the charge (BlackRock). More notably, BNY’s 2025 Investment Insights report reveals that nearly two-thirds of family offices anticipate making six or more direct investments in the coming year, which represents a 10% increase compared to actual activity in the prior period (BNY).
Relve Financial has identified these key trends shaping private markets allocation:
- Private equity funds remain core, but direct and co-investment are gaining share rapidly
- Private credit allocations are rising as families seek yield and perceived downside protection
- Real estate demand strengthening as rates decline, driven by data center construction and return-to-office trends
- Venture capital and growth equity attracting capital at attractive entry points after valuation resets
- Operational expertise is increasingly viewed as competitive advantage in direct investing
This shift toward direct investing reflects fundamental changes in how families think about capital deployment. Traditional private equity fund structures, while still valuable, require committing capital to blind pools with limited control over specific investments. Direct investing and co-investment platforms offer families greater autonomy, the ability to leverage domain expertise from operating businesses and more favorable economics by avoiding multiple layers of fees. For families with operational experience in specific sectors, direct deals allow them to add strategic value beyond capital, potentially enhancing returns while building relationships that unlock future opportunities.
The challenge, however, is capability. Industry research shows that only half of family offices making direct investments have dedicated private equity professionals as members of staff. Resource constraints are driving increased interest in external consultants, co-investment platforms and club deals where multiple families collaborate under pre-negotiated terms (Bennett Jones). Within private markets, reports suggest that growth equity has emerged as particularly attractive – driven by a 73% rise in interest from non-U.S. family offices seeking exposure to AI, healthcare innovation and energy transition at valuations substantially below 2021 peaks (BNY).
Relve Financial publishes perspectives regularly to help families decode macro shifts and capitalize on emerging opportunities. Contact our team to discuss how these trends affect your specific circumstances.