Private wealth investors are increasingly bypassing traditional private equity funds and deploying capital directly into private companies, as they seek greater control, lower fees and more tailored investment strategies, according to a report by Barron’s.
New data cited by S&P Global Market Intelligence shows family offices increased the value of direct investments by 123.3% last year to nearly $13bn, highlighting a sharp acceleration in deal activity outside the fund structure.
The shift reflects a broader reallocation strategy among ultra-wealthy investors, with a growing preference for co-investments and bilateral deals rather than committing capital to traditional private equity funds managed by firms such as Citi Wealth and Northern Trust, which advise large family office clients globally.
According to a survey from Citi Wealth, around 70% of family offices are now engaged in direct investments, while 40% have increased their activity over the past year. Investors cite “patient capital” as a key advantage, with the ability to hold assets for extended periods and avoid forced exit timelines typical of fund structures.
The appeal also lies in flexibility and customisation, said advisers at Northern Trust, noting that family offices are increasingly shaping portfolios around specific sector exclusions, liquidity preferences and reduced exposure to public markets.
Sector allocation trends suggest a strong tilt toward technology and high-growth assets. Last year, family offices deployed more than $3 billion across 36 tech, media and telecom transactions, the highest of any sector tracked by S&P Global Market Intelligence. The largest single deal was an $860 million investment in Stoke Space Technologies, a US-based aerospace start-up founded by former employees of Blue Origin and SpaceX.
In materials, family capital also featured prominently in the $4.5 billion acquisition of glass packaging group Verallia by BW Gestão de Investimentos, the family office of Brazil’s Moreira Salles family.
The trend comes as allocation strategies shift more broadly amid rising macroeconomic volatility. A separate study from UBS Global Wealth Management found that 60% of family offices are adjusting their portfolios in 2026, nearly double the proportion seen in 2025, citing a more uncertain global outlook.