Despite elevated global trade uncertainties, Citigroup's family office clients continue to pursue high-risk investments in private markets to enhance returns.

A Citigroup survey of 346 global family offices found that nearly three-quarters of these investment firms are seeking direct equity acquisitions, with startups being among the most popular investment sectors. These family offices have an average net worth of $2.1 billion.

The shift in sentiment toward private equity has been most notable: 36% of respondents indicated they increased their allocation to this asset class over the past year, while only 10% reported reductions. Looking ahead, direct private equity ranks as the second most favored asset class among family offices in the near term, trailing only developed market equities.

The Citigroup survey revealed that more than one-third of family offices have adopted a more active management approach to their portfolios in response to President Trump's tariff policies. Half of the firms reported having no leverage, highlighting their preference for financial stability to capitalize on opportunities during market volatility.

"We are now entering a stock picker's market," said Hannes Hofmann, Global Head of Citigroup's Family Office Group, meaning investors need to be more selective rather than simply allocating to broad-based indices. "We see strong interest in direct investment sectors."