Not long ago, investment conversations around the family boardroom table were largely centred on traditional asset classes like public equities, bonds, and, occasionally, hedge funds. Today, however, more families are making a strategic shift toward private markets – a trend supported by multiple research sources. Private markets are investments that don’t trade on public exchanges: think direct ownership in companies, early-stage tech ventures, real estate developments, private lending, infrastructure projects, or funds (read more about evergreen funds here).
Our Family Barometer 2025, in collaboration with PwC Switzerland, surveys wealth experts closest to UHNW families to learn what matters most to them. This year, private markets were found to be a compelling topic among these families.
This long-term move has significantly increased allocations to private markets – including areas such as real estate, private equity, venture capital, and infrastructure – now accounting in some cases for 35 per cent or more of their overall portfolios.
Why are ultra-wealthy families looking to invest in private markets?
This shift didn’t happen overnight. In fact, it often begins with a question: What other opportunities lie beyond the traditional markets? Families with multigenerational wealth are increasingly seeking alternative avenues that offer not just financial returns, but control, alignment with their values, and a chance to play a more active role in shaping outcomes. They want investments that aren’t subject to the daily turbulence of public markets or the relentless drumbeat of quarterly earnings.
That’s where private markets enter the picture. “These aren’t assets you can trade at the click of a button – and that’s precisely part of the appeal,” explains Giuseppe De Filippo, Head of Private Capital Markets at Julius Baer. “For families who can take the long view, illiquidity isn’t a drawback; it’s a feature. It opens the door to distinctive opportunities and what we call the ‘illiquidity premium’ – the additional return that comes from committing capital with patience and conviction.”
This approach is especially resonant now, as a younger generation steps forward, bringing new expectations around purpose, flexibility, and engagement. Many of these rising stewards of wealth are less interested in anonymous stock tickers and more drawn to businesses they can understand, back, and believe in. Whether it’s supporting a promising young company addressing the most pertinent climate change challenges or acquiring a stake in a health tech company enabling ubiquitous access to basic healthcare services, private markets offer a level of intimacy, narrative, and influence that public markets rarely can.
How can private market exposure improve resilience for family wealth?
The Family Barometer 2025 asked UHNW families what the main factors were driving their investment decisions in private markets, amid the rising demand for this asset class. The key drivers: private markets’ potential for higher returns and families’ ongoing desire for portfolio diversification.
The appeal of higher returns often goes hand-in-hand with the pursuit of smarter diversification. Together, they reflect a more forward-looking approach to wealth – one where families aren’t just chasing performance but building resilient portfolios across varied and complementary exposures.
Unlike public markets, where portfolios often rise and fall with the same global tides, private markets allow families to build a more nuanced, resilient investment architecture. Here, diversification isn’t just about owning different asset classes, but about spreading risk across time horizons, sectors, geographies, and even ideologies.
How do private markets allow UHNWIs to invest within their values?
Take regional diversification. A family might hold direct investments in sustainable infrastructure in Southeast Asia or allocate capital to private credit opportunities in Western Europe – all while avoiding exposures in regions they view as unstable or misaligned with their values. This ability to fine-tune global exposure helps mitigate geopolitical risk and currency volatility while positioning capital to support opportunities where they’re most compelling.
Similarly, sector diversification through private markets opens doors that public equities rarely do. Families can tap into emerging industries – like artificial intelligence – long before they become publicly investable. This offers higher potential returns and the chance to hedge against stagnation in traditional sectors.
But diversification in private markets isn’t purely defensive. It also provides influence. Through co-investments and direct ownership, families gain more than exposure – they gain a role. They can engage with founders, contribute to business decisions, and influence the trajectory of the ventures they back. This hands-on participation fosters not only financial insight but also a stronger emotional and intellectual connection to their capital.
For many families, that connection is the beginning of something deeper. As younger generations step into leadership roles, they bring with them a new lens – one focused not just on what capital can earn, but what it can enable. The question shifts from “How do we maintain and grow our wealth?” to “How do we use it to reflect who we are and what we stand for?”
However, navigating private markets doesn’t happen in a vacuum. Behind the scenes, families work closely with wealth managers to drive much of the momentum in this growing space. Families should seek support from professionals across their entire private markets journey – from initial discovery to long-term stewardship. Factors such as investment horizon, liquidity needs, risk appetite, and return expectations must be taken into account.
What are the trade-offs when investing in private markets?
Of course, private markets aren’t without friction. Lock-up periods can be long, fees can be steep, and transparency isn’t always immediate. This is also reflected in the results of this year’s Family Barometer, in which limited liquidity and transparency emerged as the key challenges when diversifying into private markets. Building a quality pipeline takes networks, discernment, and patience.
However, the ecosystem is evolving. “Secondary markets are offering more flexibility, giving families options to exit or rebalance without giving up the core benefits of private investing,” says Samantha Naleski, Direct Private Investments, Sourcing & Distribution at Julius Baer. “These innovations are reshaping what liquidity looks like in the private space – especially for families with diverse needs across generations.”
What does this mean for investors?
In the end, what we’re witnessing is more than just a portfolio shift. It’s a broader rethinking of what wealth is for. Families are no longer content to sit passively on capital. They want to engage with it, direct it, and use it to shape a future they believe in. Private markets may offer the tools and flexibility to do just that. With the right guidance and mindset, UHNW families are entering a new era of stewardship – one that blends innovation with intention, and returns with responsibility.
For more insights from our Family Barometer 2025, get the full report below.