Family Offices Managing $727 Billion Embrace Private Equity

Citigroup Inc.’s family office clients are seeking out risky bets in private markets to drive returns, even amid heightened global trade uncertainty.

Almost three-quarters of investment firms for the world’s super-rich are looking to acquire stakes directly in companies, with startups among the most popular areas, Citi found in a survey of 346 global family offices representing an average of $2.1 billion in net worth.

Private equity saw the most notable bullish shift, with 36% of respondents saying they increased their allocations to the asset class over the last year, while only 10% cut back. Looking forward, direct private ...