In recent years, family offices have evolved from indirect, secondary and/or background investors into highly active and influential players in the private equity space. In 2025, this shift is no longer a trend, it is a defining feature of the market with family offices at the forefront of new investment trends and strategies.
Across Canada and globally, family offices are deploying significant capital into private equity, not only through traditional fund commitments but increasingly through direct investments, co-investments and bespoke private market structures that reflect their unique priorities.
According to a recent Bloomberg Law report, among family offices managing over C$1 billion in assets, two-thirds of these offices plan to increase their allocations to private equity funds this year, representing a nearly 70 percent year-over-year rise from 2024. The Bank of New York Mellon further notes that nearly two-thirds of family offices expect to make six or more direct investments in 2025, a 10 percent increase in the past 12 months.
Market Climate
This increased activity is unfolding against an uncertain geopolitical and economic environment. According to BlackRock's Rewriting the Rules – Family Offices Navigate a New World Order report, 84 percent of family offices cite the current geopolitical landscape as a key challenge and a growing determinant in their investment decision-making. In response, many are increasing their allocations to alternative asset classes as a means of managing risk and preserving long-term value in their portfolios. Alternatives now account for 42 percent of the average family office portfolio, up from 39 percent in 2023—a notable increase that underscores the growing strategic role of private markets.
Family office investors continue to favour private equity and other private market strategies for their ability to capture illiquidity premia and generate differentiated return streams, particularly in volatile macroeconomic conditions. In addition, many family offices value the relative stability of private market holdings, which are marked to market less frequently than public assets and can help offset short-term volatility in overall portfolio performance.
BlackRock's Rewriting the Rules – Family Offices Navigate a New World Order 2025
Club Investing: A Key Strategy
As family offices look to deepen their private equity exposure while retaining discretion and alignment, club investing has rapidly become the strategy of choice. These collaborative structures, where multiple family offices or aligned investors co-invest in a single transaction, continue to move into the mainstream. According to PwC's Global Family Office Deals Study 2024, approximately 60 percent of family office transactions globally are now structured as club deals. This prevalence reflects a desire for direct access to high-quality opportunities, reduced fee exposure and greater control over investment terms.
Club deal structures also enable family offices to access larger or more complex assets and transactions by pooling capital and leveraging one another's sector-specific expertise. In a market defined by volatility and selectivity, this trend highlights the necessity for modern, customized investment structures that balance control, alignment and operational flexibility to meet the unique needs of family office investors.
Navigating Complexities: Tailoring Investment Structures
The growing prominence of family offices in private equity presents both opportunity and complexity for players in the space. For those operating or partnering with family offices, success increasingly depends on the ability to structure transactions that reflect clear alignment of interests, governance discipline and long-term strategic intent. As direct and club investments become more prevalent with family offices, deal execution is no longer just about access to capital, it requires an understanding of the nuances of governance, capital commitments and exit scenarios.
In this environment, family offices and their counterparties should deeply consider how they structure co-investments, assess risk-sharing mechanisms and manage decision-making processes. For sponsors and advisors, understanding the unique objectives and governance preferences of family offices is critical to forging durable partnerships that deliver sustainable value and mutually benefit the parties. Successfully navigating this evolving landscape requires a sophisticated approach to due diligence and a deep understanding of the operational complexities inherent in co-investment and club deal arrangements.
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