In the paper “Why Family Offices Are Shifting to Real Assets,” Omnigence examines a growing allocation shift within the alternatives universe. Surveys from institutions such as UBS and Campden Wealth indicate that family offices have steadily reduced hedge fund exposure over the past decade while increasing allocations to farmland, infrastructure, timberland, and direct real estate.
The paper argues that this shift reflects growing concerns about hedge fund fee structures, rising correlations with public markets, and limited portfolio transparency. In contrast, real assets provide simpler income streams, structural inflation protection, and investment horizons that align well with multi-generational wealth planning.
For RIAs and high-net-worth investors, the trend highlights an important signal. The capital is not leaving alternatives. Instead, it is reallocating toward tangible assets that combine income generation, inflation resilience, and long-term scarcity value.