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There is perhaps a latent, unspoken hope in the minds of many weary investors that things will eventually ‘go back to normal’. With each passing year, that hope becomes more remote.

2025 has certainly offered no indications of a return to the status quo ante. As investors continue to be buffeted by tariffs, geopolitical brinksmanship, and the longer-term demographic conundra that threaten many advanced economies, it’s natural that they should begin to seek novel remedies.

So, what is the “smart money” doing? In this article, we look at how the world's largest investors - including pension funds and sovereign wealth funds - are innovating to find growth.

Private markets - a broad category including private equity, private debt, infrastructure, real estate, and venture capital - are on track to account for nearly a third of all assets under management by 2032, according to Bain & Company.

A raft of investor surveys conducted in the past 12 months - including studies by Goldman Sachs

 - confirms that investors are largely entering, maintaining, or doubling down on their allocations to private markets.

Most recently, a Barclays Private Bank survey released on October 31st found that 79% of investors actively participating in private markets expect to increase their allocations in the coming year, and 48% of those not invested are considering doing so.

This comes after a temporary lull in fundraising for the private equity industry, due to the rapid increase in borrowing rates during the 2022-2023 war on inflation. The increase in rates pressured valuations and made new acquisitions more expensive, creating a temporary bottleneck.

Since then, private equity has adjusted to the new era. In 2024, distributions exceeded contributions for the first time since 2015 - meaning investors (Limited Partners) received more cash back from their investments than they contributed for new deals.

 The recent decision of Kuwait’s pension fund (PIFSS) to resume its private market investing after a three-year pause

 is the latest evidence of private investing’s new momentum.

 the core benefits offered by private markets investing: higher returns, improved diversification, and psychological insulation from volatility

From a target company’s perspective, raising private capital gives more breathing room, away from the burden of quarterly profit targets. From an investor’s perspective, it makes it possible to ‘get in on the ground floor’, as well as exert more control over the company’s strategy.

The ‘lull’ in private equity activity has left many funds ‘under-allocated’ to this asset class, signaling a steady influx of capital back into the field in the coming months and years.

 2025 Private Markets Diagnostic Survey (page 15)

The various surveys referenced above also offer insight into what is driving the renewed ascent of private markets. Goldman Sachs notes that operational value improvement via active ownership has become the main focus, replacing a reliance on pure financial engineering.

BNP Paribas also notes the increasing importance of thematic investing, given that a ‘rising tide that lifts all boats’ strategy can no longer be relied upon.

Infrastructure is, according to McKinsey’s Global Private Markets Report 2025, the highest area of new commitment (46%) among Limited Partners. The IFM survey further revealed that investors are predicting returns for Infrastructure Equity to jump to 13.4%, in line with traditional private equity returns.

The rewiring of global trade, the green energy transition, and the AI revolution all require new infrastructure of some kind, be it manufacturing capacity, power generation, or airports and roads. This coming wave of investment offers a rare combination of growth and stability (through predictable, resilient cashflows).

Private fundraising is likely to be a critical part of funding this new wave, given the strain on many government budgets.

If the benefits of private markets seem too good to be true, it should be added that they come at a cost - namely, stringent due diligence on the part of the investor. While financial engineering is sector-agnostic, operational value enhancement is business-specific, and hence rarer.

As demand for private markets investing increases, many funds will emerge looking to attract capital. This will lead to a more crowded field, consisting of both capable and less capable actors. The gap between well-performing and poor-performing funds will widen as a result.

In order to capitalize fully on the private markets opportunity, therefore, investors must be selective, seeking out managers with functional and sectoral expertise, demonstrated by a clear track record.

The Renewed Ascent of Private Markets

At The Family Office, we view retirement as a continuation of disciplined wealth stewardship. Our approach is holistic and goal-based, focusing on balancing income, growth, and security to ensure financial peace of mind throughout every stage of life. The key to success lies in designing a retirement income plan that offers stability, flexibility, and the capacity to adapt to life’s changes.

To achieve a reliable retirement income, there are several critical steps and considerations that must be taken into account.

1. Understanding the New Retirement Landscape

People today are living longer and more active lives.

In fact, many individuals can expect retirement to span over 30 years.

 While this extended lifespan offers opportunities for growth, it also introduces new financial challenges that must be carefully managed.

These challenges include inflation, which erodes purchasing power over time, rising healthcare costs, which continue to increase unpredictably, and the ever-growing need for financial resources to maintain a comfortable lifestyle throughout retirement. The traditional retirement planning model, which relied on a set withdrawal amount from fixed savings, no longer offers the flexibility or stability that today’s retirees need.

As a result, retirement planning must be more dynamic and proactive. The Family Office recognizes these shifts and works with clients to build plans that account for longevity, rising costs, and lifestyle changes that may arise over time.

Successful retirement planning begins with a clear understanding of your goals and needs. What kind of lifestyle do you want to enjoy in retirement, and what income will be required to sustain it? Defining these aspects early on allows us to tailor a strategy that meets your specific objectives.

A fundamental part of retirement planning is understanding your income sources. These can range from predictable sources such as pensions, rental income, or business proceeds, to investment-based income that fluctuates based on market conditions. It’s essential to strike the right balance between these sources to create a consistent income stream that meets your needs without overexposing you to risk.

At The Family Office, we focus on goal-based planning that ensures each client's income structure is aligned with their financial objectives and family priorities. This approach is designed to provide both financial security and peace of mind, knowing that income streams will be available to support your lifestyle for years to come.

3. Designing a Portfolio for Sustainable Income

A sustainable retirement portfolio requires the right mix of liquidity, income, and growth. Unlike accumulation years, where risk tolerance may be higher, retirement requires a more conservative approach. The portfolio should provide stable income while still allowing for some growth to combat inflation and ensure long-term sustainability.

Private market strategies, such as private credit, real estate investments, and diversified funds, are critical in building a robust portfolio that generates consistent income while preserving capital. These assets can provide more reliable income streams compared to traditional stocks and bonds, which can be volatile, especially in the early years of retirement.

At The Family Office, we build diversified portfolios designed to withstand market fluctuations and generate steady cash flows, tailored to each client’s time horizon, risk appetite, and income needs. Our approach ensures that the portfolio remains resilient during downturns while continuing to grow over time.

The sequence and timing of withdrawals are crucial to preserving long-term wealth. Unstructured or poorly planned withdrawals can shorten the lifespan of a retirement portfolio, especially during market downturns. A disciplined withdrawal strategy, on the other hand, ensures that assets last as long as needed, helping to maintain a steady income stream while protecting the principal.

Effective cash flow management also requires thoughtful withdrawal strategies. By carefully planning these withdrawals, you can preserve capital for future use. The Family Office works closely with clients to develop strategies that balance income needs with long-term portfolio sustainability, providing a stable income while safeguarding the longevity of your assets.

5. Staying Disciplined Through Market Cycles

Market volatility is an inevitable part of investing, and it can be particularly challenging during retirement when you’re relying on your investments to provide income. Emotional reactions to market downturns can lead to hasty decisions that disrupt long-term plans.

At The Family Office, we help clients stay disciplined and avoid knee-jerk reactions during market fluctuations. We understand the importance of sticking to a strategy that aligns with long-term goals, rather than being swayed by short-term market movements. Our guidance ensures that clients remain focused on their objectives, maintaining a structured approach to investing even during times of uncertainty.

While financial security is crucial for a comfortable retirement, how you live in retirement is just as important. Retirement planning isn’t just about wealth; it’s about enhancing your quality of life. Aligning financial goals with personal life goals can lead to a more fulfilling retirement experience.

Whether it’s traveling, starting a new business, or spending more time with family, your retirement income plan should reflect your desires and priorities. At The Family Office, we understand the human aspect of retirement, helping clients not only preserve wealth but also achieve personal fulfillment. We also assist clients in defining their legacy, ensuring that both financial stability and emotional peace of mind are preserved for future generations.

Retirement success is built on foresight, discipline, and structure. By aligning your income needs with well-diversified strategies and professional guidance, you can enjoy a retirement that offers both stability and confidence. At The Family Office, we help clients create retirement income plans that endure, ensuring that their wealth is preserved, their lifestyle sustained, and their legacy supported for generations to come.

With a comprehensive approach to retirement planning, The Family Office stands ready to guide you through every stage of life, providing the insights and expertise necessary to navigate the complexities of retirement and secure a fulfilling future.

Global Financial Literacy Excellence Center

Building a Reliable Retirement Income Plan

Institutional investors don’t just succeed because of their financial resources, but because they make decisions anchored in a strong sense of purpose and discipline. Individual and family investors can adopt this mindset as well by defining their purpose and documenting their financial goals. At The Family Office, we believe that confidence in investing doesn’t come from speculation, but from a structured, thoughtful approach: one that can withstand market fluctuations and evolve with changing circumstances.

In this article, we explore the core principles of investing with purpose and discipline, and how they contribute to lasting success.

Investing should not be driven solely by the pursuit of financial returns; it should reflect deeper, long-term aspirations. Whether your goals include building a legacy, supporting philanthropic endeavors, or achieving financial independence, it’s crucial to clarify the "why" behind your wealth. This provides perspective and guidance, especially during periods of market volatility.

At The Family Office, we begin with a thorough exploration of each client’s purpose. This goal-based planning approach ensures that your investment strategy is aligned with your life’s ambitions, whether that’s securing future generations' financial independence, contributing to meaningful causes, or creating a sustainable income stream.

2. Set Clear Long-Term Goals and Short-Term Needs

An essential step in crafting a successful investment strategy is distinguishing between long-term growth objectives and short-term needs. Whether your goal is capital appreciation, generating income, or preserving wealth, your investment plan should reflect these priorities.

It is equally important to consider both essential spending, such as living expenses, and discretionary spending, such as lifestyle enhancements or luxury purchases. By clearly outlining your needs for the short-term alongside your long-term aspirations, you can create a balanced strategy that accounts for both current financial obligations and future wealth accumulation.

At The Family Office, we design strategies that are intended to seamlessly integrate today’s financial needs with tomorrow’s objectives, ensuring your strategy evolves alongside your circumstances.

3. Understand and Commit to Your Risk Profile

Risk is an inherent part of investing. Confidence in investing does not mean avoiding risk, but rather understanding and accepting it. By clearly defining your acceptable loss levels and risk tolerance, you can make informed, deliberate decisions that align with your financial capacity.

According to the CFA Institute, risk tolerance can fluctuate based on changing circumstances, such as market volatility and emotional states.

However, maintaining a clear, well-documented risk profile is crucial for staying aligned with your long-term goals and remaining resilient through market cycles. A defined risk profile helps prevent reactionary decisions during times of uncertainty, ensuring a disciplined approach to investing.

At The Family Office, we ensure that each client’s portfolio reflects their financial capacity and emotional tolerance for risk. With a well-defined risk profile, investors are better equipped to make thoughtful decisions, rather than succumbing to short-term market swings.

You can discover your risk profile by using our 

4. Maintain Discipline Through Uncertainty

Volatility is an inevitable part of the market. However, abandoning a well-thought-out strategy in response to short-term market fluctuations undermines long-term results.

At The Family Office, we follow a structured Strategic Asset Allocation (SAA) framework, which helps us model the right investments for our clients based on their risk tolerance and financial objectives. This framework provides a tailored strategy, one that can withstand market turbulence.

Having a written plan, supported by the SAA framework, serves as a guidepost during turbulent times. It reinforces long-term goals and helps investors remain steadfast in the face of market disruptions.

5. Keep the Plan Dynamic and Aligned with Family Circumstances

Investing is not a one-time event, but an ongoing process that must evolve with your life’s changing circumstances. Major life events such as marriage, the birth of children, career shifts, or retirement can all impact your financial priorities. Therefore, it’s essential to regularly review and adjust your investment strategy to ensure it remains relevant and effective.

At The Family Office, we work with families across generations to adjust strategies as their needs evolve. Regular reviews ensure that your plan stays aligned with changing life circumstances and financial goals, providing the flexibility needed to adapt to shifting priorities. This dynamic approach keeps your investments aligned with your long-term vision, no matter where life takes you.

Confidence in investing comes from clarity, purpose, and discipline. By grounding investment decisions in well-defined goals and values, families can remain resilient during periods of market volatility and stay focused on what matters most. At The Family Office, we help clients invest with conviction, providing structure and guidance to ensure their strategies endure through market cycles and across generations. With a clear plan in place, investors can navigate uncertainty with calm and confidence, knowing their strategy is designed for long-term success.

The Rise of Private Debt: A New Era for Capital Markets and Portfolios

Wednesday, November 8, 2023

4:00 pm (GMT+3)

Language: English

Shahab Rashid discusses the rise of private debt, marking a new era for capital markets and portfolios, including:

Speaker

Shahab Rashid

Moderator

Naji Nehme, CFA

Register Now

Keep watching

The Renewed Ascent of Private Markets

Building a Reliable Retirement Income Plan

Investing with Confidence: A Structured Approach for Long-Term Success