Family offices face a turning point. For decades, wealthy families and portfolio managers relied purely on equities, government bonds, and property to preserve and grow their capital. But inflation, higher interest rates, and market volatility have changed the playbook. Today, the mission is not simply to grow - it’s to preserve family wealth through smarter diversification, liquidity and cash management, and exposure to new alternative investment opportunities.
As 2026 approaches, family office capital preservation and portfolio risk management strategies are being reassessed. Below is an overview of the best alternative investments available - data-backed and relevant to both European and United States family offices managing long-term wealth.
Welcome to the definitive list of top alternative yield strategies for family offices.
Private credit remains the backbone of family office diversification in investment portfolios. As banks reduce lending, direct lenders and private funds have filled the gap - generating attractive spreads and predictable cash flow. The global private credit market now exceeds US $1.7 trillion, according to S&P Global.
The next evolution is tokenised private credit: institutional-grade lending tokenised on-chain for greater transparency, liquidity, and fractional access.
For family offices and high net worth individuals, tokenised credit combines high yield (7-12%), floating-rate protection, and daily visibility through blockchain settlement. It provides a hedge against inflation and a complement to public equity and bond exposure.
Slow liquidity (usually quarterly exits), limited trading depth, and possible counterparty risk. Family offices must evaluate underwriting standards and governance frameworks before allocating.
In a world of geopolitical fragmentation and persistent inflation, infrastructure is reclaiming its place as the anchor of capital preservation.
Core assets - renewable energy, data centres, transport, logistics - generate contractually backed, inflation-linked returns. Well-structured infrastructure funds or tokenised vehicles deliver 6-9% annualised yield, combining stability with inflation protection.
Treat infrastructure yield as a foundational share of the alternatives portfolio. Focus on transparent funds, moderate leverage, and regulated jurisdictions. Align lock-ups (7-10 years) with the family office’s liquidity and succession planning needs.
As private-market valuations reset, the secondary market for private equity and venture funds offers a rare opportunity: exposure to proven portfolios at discounts.
For family offices investments, secondaries reduce the “blind-pool” risk of new funds and shorten the investment duration. They allow entry into mature portfolios near exit, improving cash management and short-term liquidity planning.
Limited transparency, fund leverage, and illiquidity. Still, a moderate allocation can enhance overall risk-adjusted returns without over-concentrating exposure.
A new form of fixed income is emerging. Digital credit blends the resilience of private credit with the speed and liquidity of on-chain infrastructure - creating yield-bearing assets that are transparent, over-collateralised, and instantly liquid.
The tokenised real-world-asset (RWA) market surpassed US $24 billion in 2025, growing over 300% in three years. Digital credit dwarfs that, with a market size of USD $71 billion. By embedding credit instruments directly on blockchain rails, settlements are faster, reporting is continuous, and redemption windows shrink from years to weeks. For wealthy families and high net worth individuals seeking liquid alternative assets, these strategies offer something long missing: yield without long lock-ups.
Returns typically range from 7-11%, sourced from over-collateralised loans and institutional borrowers rather than speculative trading. The structure nearly eliminates borrower counterparty risk and provides both downside visibility as well as flexibility to rebalance - an appealing feature for those seeking to preserve capital while remaining agile.
Nascent regulation, custody security, and platform dependency. While digital credit eliminates borrower counterparty risk, it relies heavily on technology to achieve that - a risk that has to be mitigated. Family offices must conduct strict due diligence on custody partners, insurance availability, and technical security before investing.
As the space grows, careful partner selection becomes essential. Family offices increasingly rely on specialised institutional facilitators capable of navigating custody, compliance, and credit due diligence. Managed prudently, digital credit is not a leap into new territory - it is the natural next step in how family wealth manages liquidity, yield, and risk in a more transparent financial era.
A resilient family office treasury combines yield, liquidity, and defensibility.
Properly balanced, such a framework can achieve ambitious yield targets with moderate volatility and, thanks to innovations in digital credit, money-market-fund-style liquidity and downside protection - outperforming money-market funds and investment-grade bonds while maintaining control.
For single family offices and multi-family platforms alike, 2026 marks a shift in management strategy. True capital preservation now lies in diversified alternative assets that combine yield, inflation resilience, and controlled liquidity.
Family offices that adapt early - integrating alternative assets into their treasury management, liquidity planning, and risk management frameworks - will secure the most important advantage of all: preserved, compounding wealth across generations.
In a high-rate, volatile world, wealth preservation is not about standing still. It’s about positioning capital where the future’s value is being built - productive, compliant, digital, and resilient.
