Allocators reach alternatives through four main routes: direct holdings, pooled funds, separate accounts and secondary transactions. Each route places different demands on sourcing, diligence, administration and liquidity planning. In 2026 survey data, 75% of Citi's family-office respondents invest directly in companies, while 66% of investors in AIMA/Marex's emerging-manager survey prefer commingled funds.
What are the main routes into alternatives?
- Direct holdings. The investor owns a stake in a company or asset and carries the sourcing, diligence and monitoring work.
- Pooled funds. The investor subscribes to a commingled vehicle, through a primary commitment or a fund of funds, and relies on the manager's process.
- Separate accounts. The investor owns the account and grants trading authority to a manager, with direct visibility of positions.
- Secondary transactions. The investor buys existing fund interests or company shares from another holder.
These routes coexist inside the same portfolios. In Citi Wealth's 2026/27 Global Family Office Report, direct private equity and private-equity funds each account for 9% of the reported global allocation. [1]
What does direct investing require?
Participation is high. In the Citi report, 75% of respondents say their families invest directly in companies, rising to 79% in Asia-Pacific and 78% in North America. For the next year, 7% expect a meaningful increase in direct-investment activity and 33% a modest increase. [1]
Activity here covers sourcing, diligence and execution. It is not a measure of capital deployed.
| Channel | Global | AUM below $500m | AUM above $500m |
|---|---|---|---|
| In-house team | 69% | 60% | 75% |
| Other families / family offices | 49% | 37% | 57% |
| Banks | 40% | 45% | 36% |
| Investment advisors | 36% | 42% | 33% |
| Networking groups / investment clubs | 34% | 34% | 34% |
| Other | 10% | 12% | 8% |
Source: Citi Wealth, 2026/27 Global Family Office Report, pp. 67-68. Multiple channels allowed. Per-question sample sizes are not disclosed.
Larger offices rely more on internal teams and peer families. Smaller offices make greater use of banks and advisers. [1]
Ticket preferences follow the same split. The most common preferred direct-deal ticket is $1 million to $5 million, selected by 44% globally and 51% of smaller offices. Among offices above $500 million, 29% prefer tickets above $10 million, against 7% of smaller offices. These are stated preferences, not realised deal sizes or fund subscription minimums. [1]
When does a pooled fund fit?
A pooled fund transfers sourcing and execution to the manager. The investor's work shifts to manager selection, terms and monitoring.
Among Citi's family offices, growth equity leads intended increases in new private-equity fund commitments at 30%, followed by venture capital at 21%, secondaries at 19% and buyouts at 17%. [1]
Office size shifts these intentions. Larger offices show stronger intentions across most fund strategies, especially venture capital at 25% against 15% for smaller offices. Smaller offices are more likely to increase distressed-fund commitments, at 12% against 10%, and fund-of-funds commitments, at 11% against 6%. [1]
For emerging hedge-fund managers, the preference for pooled access is clear. In AIMA/Marex's Emerging Manager Survey 2026, 66% of investors prefer commingled funds, 16% prefer SMAs and 18% would consider either. Roundtable participants said some smaller investors find SMAs administratively burdensome. The sample pools 50 investors, 42% of them family offices, so the result is not family-office-specific. [2]
How do separate accounts differ?
A separate account gives the investor ownership and position-level visibility. It also hands the investor the agreements, reconciliation and oversight work. Our comparison of separately managed accounts and fund investment sets out the trade-offs.
AIMA/Marex also asked how investors predominantly allocate across hedge funds. That question covers overall hedge-fund allocation, not emerging-manager access, so its results sit apart from the vehicle preference above. [2]
| Structure | 2026 | 2024 |
|---|---|---|
| Offshore funds | 54% | 68% |
| Onshore funds excluding UCITS | 28% | 20% |
| Managed accounts | 14% | 9% |
| UCITS | 4% | 3% |
Source: AIMA/Marex, Emerging Manager Survey 2026, p. 14. Response shares, not portfolio weights.
Where do secondaries fit?
Secondaries appear in two forms, and the survey treats them separately. In Citi Wealth's 2026/27 report, 19% of family offices plan to increase secondary-fund commitments, up from 10% in the 2025 survey. Respondents differ between years, so this is not a tracked doubling within the same offices. [1]
Separately, 40% select direct secondary transactions as a primary direct-investment focus. Citi links interest in secondaries to slower IPO exits. That link is the author's interpretation, not a measured cause. [1]
What does the evidence not show?
Neither report quantifies a family-office preference for co-investments, evergreen funds, SPVs, tokenised vehicles or particular domiciles. Citi reads modest tickets and peer networks as supportive of co-investment, without measuring that demand. Claims about those structures need their own evidence. [1, 2]
The choice of route depends on the allocator's sourcing capacity, team size, liquidity needs and reporting requirements. See the vehicle structures Gnosis covers. Gnosis introduces allocators to managers regulated in their home jurisdiction and evaluates them through Allocator IQ; the allocation decision stays with the allocator.
Frequently asked questions
Do family offices prefer SMAs or funds?
The evidence is narrow. In AIMA/Marex's Emerging Manager Survey 2026, 66% of a pooled sample of 50 investors prefer commingled funds for emerging hedge-fund access, 16% prefer SMAs and 18% would consider either. Family offices are 42% of that sample. No supplied survey measures a universal family-office preference.
Is the $1 million to $5 million ticket a fund minimum?
No. It is the most common preferred ticket for direct private investments in Citi Wealth's 2026/27 Global Family Office Report, selected by 44%. It does not set a fund subscription minimum.
Are secondary-fund commitments the same as direct secondary transactions?
No. Citi reports 19% of family offices planning to increase secondary-fund commitments and, separately, 40% selecting direct secondary transactions as a direct-investment focus.
How do family offices source direct deals?
In Citi Wealth's 2026/27 Global Family Office Report, 69% name in-house teams as a primary source, 49% other families or family offices and 40% banks. Larger offices rely more on internal teams and peer networks; smaller offices use banks and advisers more often.
Is there a single preferred access route?
No. The reports describe preferences within specific samples. Direct holdings demand sourcing and diligence capacity, funds demand manager selection, and separate accounts demand administration.
For institutional investors. This article provides general information, not investment, tax or legal advice or a recommendation of any manager, strategy or structure. Survey figures describe the stated populations and periods and do not indicate future allocations or results. Past performance is not necessarily indicative of future results.
Sources
- Citi Wealth, 2026/27 Global Family Office Report. Survey beginning June 2026 of 351 Citi Wealth family-office clients across 41 countries; per-question sample sizes for direct-investment questions are not disclosed. pp. 51-53, 63-80.
- AIMA/Marex, Emerging Manager Survey 2026: The next generation of hedge fund managers. Separate samples of 180 emerging hedge-fund managers and 50 investors managing more than $429 billion; 42% of investors are single or multi-family offices. pp. 7, 14, 37.