BlackRock’s Armando Senra told CNBC that family offices overall are still investing more capital in private equity. They are, however, spreading their bets when it comes to private markets, hence the growing market share of private credit and infrastructure.
“Private equity continues to be a centerpiece of the portfolio,” said Senra, who leads the asset manager’s institutional business in the Americas. “I think that what you see is more of a desire to diversify for a number of reasons.”
Liquidity is a key factor, he said, as the slowdown in exits means private equity investors have to wait longer for returns.
Senra also cited the low-risk appeal of infrastructure investing, which he said can provide a “private-equity-type return with significantly lower risk.” Three-quarters of respondents to the BlackRock survey reported feeling bullish or optimistic about infrastructure, with only 5% expressing pessimism.
The sector is also a way for family offices to invest in the artificial intelligence boom.
“AI has big infrastructure needs,” Senra said, noting increased demand for data centers and improved energy grids.
In May, Jeff Bezos’ family office backed a $155 million seed round for Atlas Data Storage, a firm that uses a DNA-style system to store data more efficiently and at a lower cost.