American Family Offices Show Confidence in U.S. Economy: A New Survey Analysis

Despite rising concerns over a potential “sell America” sentiment due to economic uncertainties and trade negotiations, American family offices are increasingly investing in the U.S. economy. A recent survey by UBS illustrates this optimism, highlighting a significant uptick in investment allocations toward North American assets among wealthy families. Here’s a closer look at the findings and what they mean for the future.

Growing Domestic Focus in Family Office Portfolios

According to the UBS Global Family Office Report, U.S. family offices have raised their investments in North America to an impressive 86% of their portfolios as of the first quarter of this year. This figure represents a substantial increase from 74% in 2020. The survey, which included insights from 317 global family offices, indicates a clear preference for domestic investments amid global economic uncertainties.

John Mathews from UBS commented on these trends, stating, “U.S. family offices are staying home. In times of uncertainty, you invest in things you understand.” This strategy reflects a commitment to familiarity and control over their investments as families navigate the volatile market landscape.

The Resilience of U.S. Stocks

The bullish stance on the U.S. market can be attributed to its historical outperformance. Even with President Donald Trump’s tariffs impacting global market dynamics shortly before the survey, domestic family offices remained undeterred. As of 2025, plans to increase allocations to developed market equities (predominantly U.S.-based) indicate strong future growth, with family offices intending to raise these allocations from 26% to 29%.

Interestingly, American family offices are anticipated to expand their exposure to stocks — elevating their allocations from 28% to 32% this year. Skyrocketing interest areas include artificial intelligence, power and energy generation, and significant healthcare innovations.

Shift Away from Private Equity

While family offices are leaning into public markets, there’s a noted retreat from private equity investments. After peaking at 22% in 2023, allocations to private equity have been trimmed by 1% in the previous year, with plans for another 3% cut this year, targeting an ultimate allocation of 18%. U.S. family offices are expected to trim their private equity investments considerably more, reducing their direct and funds investments by 8%.

Nonetheless, Mathews points out that family offices still maintain substantial capital in private equity markets, with many families waiting for the right opportunities to invest again. In fact, over the next five years, 37% of surveyed firms plan to increase their direct placements in private equity, while 34% express interest in funds or funds of funds.

Real Estate: A Strategic Opportunity

In addition to this shift in equity and private investments, there’s a substantial increase in appetite for real estate. U.S. family offices plan to boost their real estate allocations by 8%, reaching a total of 18%, while international family offices anticipate only a modest rise to 11%.

Mathews notes a disparity in focus depending on how families have historically generated their wealth. “If you’re a real estate-focused family office, you may be looking at this as an opportunity to scale back. If you’re not, you’re probably looking at this as an opportunity to look to buy home debt,” he explains. This perspective identifies potential opportunities for investments as property values fluctuate in the current market.

Conclusion: Confidence Amid Uncertainty

The UBS Global Family Office Report underscores a remarkable shift in investment strategies among American family offices. As they navigate a complex economic landscape, their focused investments in the U.S. market reflect a blend of confidence and caution.

While international family offices may be diversifying interests, the consensus amongst U.S. families continues to favor local economic stability. The sentiment is clear: even when faced with a turbulent market, investing in familiar territories is a priority. For those involved in wealth management and investments, this survey serves as an important indication of shifting priorities as we move into 2025 and beyond.

If you want to explore more about the nuances of family office investments and their strategies going forward, check out our articles on investment strategies, real estate trends, and public market dynamics.