Navigating the New Geopolitical Reality: How Family Offices Are Redefining Wealth Preservation
In the rarefied world of family offices—the private wealth management hubs for the world’s wealthiest dynasties—a seismic shift in investment philosophy is underway. For years, the primary concern keeping family office principals awake at night was the volatility of interest rates. However, as the global landscape grows increasingly fractured by conflict, trade protectionism, and shifting alliances, the focus has pivoted sharply toward geopolitical risk.
According to the July 2026 Roland Berger Family Office Study, 88% of surveyed family offices now cite geopolitical upheaval as their primary concern, a significant jump from 65% just a year prior. As these sophisticated investors move to insulate their capital against a volatile world, they are abandoning speculative bets in favor of tangible, inflation-resistant assets, with infrastructure emerging as the cornerstone of the modern portfolio.
The Chronology of a Shift: From Rate Anxiety to Global Instability
To understand why family offices are reallocating, one must look at the recent history of macroeconomic sentiment. Throughout 2023 and early 2024, the "higher-for-longer" interest rate environment dominated discourse. Financial planners and family office executives alike were obsessed with the cost of debt and the repricing of risk.
By mid-2025, however, the narrative began to change. As markets adjusted to the reality of sustained, albeit moderated, interest rates, the "rate anxiety" that once defined the industry began to subside. In the latest Roland Berger data, the percentage of executives identifying interest rates as a top concern dropped from 78% to 68%.
In its place, a more complex, multi-polar geopolitical environment emerged. The survey, which captures the sentiments of 88 family office executives and associated wealth professionals—primarily based in the financial hubs of Germany, Switzerland, and Austria—highlights a decisive movement. These managers are no longer reacting to central bank policy; they are reacting to the breakdown of established global trade norms and the persistent threat of regional conflict.
Infrastructure: The New Defensive "Must-Own"
Perhaps the most striking finding in the study is the meteoric rise of infrastructure. Sixty-nine percent of family offices now plan to increase their exposure to the asset class, a massive leap from the 41% reported just 12 months ago.
Infrastructure is uniquely positioned to thrive in the current climate for three reasons: it is tangible, it is essential, and it is frequently linked to inflation-adjusted revenue streams. Whether it is power grids, telecommunications networks, or logistical hubs, infrastructure provides the physical backbone of the economy, regardless of whether a war is being fought or a trade tariff is being imposed.
Bridging the Gap: Liquid Access for Retail Investors
While family offices often gain this exposure through private placements and multi-year lockup funds, financial advisors and retail investors are not excluded from this thematic rotation. The financial industry has evolved to offer liquid vehicles that capture this institutional trend.
For instance, the Global X U.S. Infrastructure Development ETF (PAVE) provides a transparent, liquid way for investors to mirror the strategy of the wealthy. By tracking companies involved in U.S. construction, engineering, and the production of heavy equipment, PAVE allows advisors to participate in the capital-intensive modernization of the domestic economy—a trend that is largely insulated from the whims of international geopolitics.
Private Equity and the Retrenchment of Venture Capital
The study reveals a bifurcated approach to private markets. While family offices remain committed to private equity, their appetite for early-stage venture capital is clearly waning.
Fifty-five percent of those currently holding private equity fund positions intend to increase their stakes, up from 48% last year. This reflects a continued belief in the value-creation potential of mature private firms. Conversely, venture capital is seeing a significant pullback: only 19% of respondents plan to increase their exposure, while 35% are actively seeking to trim their holdings. This suggests a systemic flight to quality, where family offices are favoring the cash-flow-positive stability of established private companies over the speculative, "burn-rate-heavy" nature of early-stage startups.
For those who lack the massive capital requirements to enter private equity deals directly, the Invesco Global Listed Private Equity ETF (PSP) serves as an effective proxy. By holding publicly traded private equity firms and business development companies, PSP provides exposure to the same asset class driving institutional demand, while maintaining the daily liquidity required by the modern advisor.
Healthcare and the AI Paradox
Despite the turbulence elsewhere, healthcare remains the "defensive anchor" of the wealthy. While there was a slight dip in sentiment—from 61% to 58%—the sector remains a bedrock of family office portfolios.
The strategy here is clear: demographics and medical necessity provide a buffer against economic cycles. Advisors looking to provide clients with similar stability can look toward the State Street Health Care Select Sector SPDR ETF (XLV). For those seeking a more concentrated, higher-alpha play within the same space, the ALPS Medical Breakthroughs ETF (SBIO) offers exposure to small- and mid-cap biotech firms currently navigating the high-stakes world of Phase II and Phase III clinical trials.
Interestingly, this commitment to defense is happening in tandem with a growing, aggressive allocation to Artificial Intelligence. The study notes that interest in AI-linked investments rose to 45% from 37% a year prior. This reveals a dual-track strategy: using healthcare to weather the storm, while using AI to capture the transformative growth of the next decade.
Geography: The Flight to Stability
The geographical map of wealth is also being redrawn. Emerging markets, once the darlings of institutional growth, are seeing a decline in favor. Instead, capital is flooding into stable, developed regions that offer the rule of law and political predictability.
- North America: Remains the dominant region, cited by 88% of respondents as a "relevant" market. Its depth and liquidity make it the primary home for family wealth.
- Northern Europe: The region is seeing a surge of interest, with 60% of family offices planning to increase their holdings there.
- Japan: Perhaps the most compelling international story, 72% of family offices view Japan as a key market, with 44% planning to increase their exposure. This is largely attributed to long-awaited corporate governance reforms that have finally begun to unlock shareholder value. Investors can track this theme through the WisdomTree Japan Hedged Equity Fund (DXJ), which offers exposure to Japanese exporters while mitigating currency risk.
In contrast, the Middle East, South America, and Africa are increasingly relegated to "non-core" status. With 30% of family offices planning to reduce exposure to the Middle East, the message is clear: when the world is in flux, the wealthy prefer the safety of familiar, developed institutions.
Implications for Financial Advisors
The Roland Berger study serves as a masterclass in how sophisticated capital navigates uncertainty. For the financial advisor, the implications are three-fold:
- Prioritize Liquidity: While family offices can afford to lock capital away for years, most clients cannot. By utilizing ETFs like PSP, PAVE, or XLV, advisors can provide their clients with "institutional-grade" thematic exposure without sacrificing the ability to pivot when the market demands it.
- Focus on Cash as a Strategic Tool: The study highlights that 94% of family offices are keeping a significant cash cushion. This is not a sign of fear, but of agility. Advisors should encourage clients to view cash not as a drag on performance, but as "dry powder" ready to be deployed at the first sign of a market dislocation.
- The New Definition of "Defensive": Defensive investing is no longer just about buying bonds. In a world where geopolitical shocks can occur overnight, defensive investing means owning the physical infrastructure of the nation and the healthcare systems that support the population.
Conclusion: Agility in an Age of Uncertainty
The findings from the 2026 Roland Berger Family Office Study confirm that we have entered an era where macroeconomic data is secondary to geopolitical reality. The wealthy are protecting their legacies by rotating into assets that are essential, inflation-resilient, and anchored in politically stable regions.
For the average investor, this is not a time to retreat to the sidelines. Instead, it is a time to emulate the prudence of the family office: focus on structural strengths, maintain sufficient liquidity, and ensure that your portfolio is built to withstand a world that is fundamentally more fractured than it was just a few years ago. By mirroring these institutional shifts through liquid, transparent vehicles, advisors can ensure their clients remain not just protected, but positioned for success in a challenging global environment.
