Allocator sentiment towards private credit has turned selective. In Citi Wealth's 2026/27 Global Family Office Report, 10% of family offices plan to increase private-credit exposure and 22% plan to reduce it, a net reading of minus 12 points against plus 12 in the 2025 survey. In iConnections' Global Allocator Report 2026, 41% of surveyed allocators were slowing or reducing exposure, while 30% still found the asset class attractive.
How has family-office sentiment towards private credit changed?
Private credit holds 2% of the reported global family-office allocation in Citi Wealth's 2026/27 report, and 3% among offices above $500 million. [1]
Forward intentions are cautious. Among respondents, 10% plan an increase, 68% plan to maintain and 22% plan a decrease. The published net reading moved from plus 12 points in the 2025 survey to minus 12 in 2026. Hedge funds, by contrast, show 28% planning increases. [1]
The caution extends to parts of the wider credit market. In the same survey, developed corporate high-yield fixed income shows a published net reading of minus 10 points and emerging-market fixed income minus 6. Developed investment-grade fixed income sits at plus 1. [1]
| Asset class | Increase | Maintain | Decrease | Net, pp |
|---|---|---|---|---|
| Private credit | 10% | 68% | 22% | −12 |
| Developed corporate high-yield | 6% | 77% | 17% | −10 |
| Emerging-market fixed income | 8% | 77% | 14% | −6 |
| Developed investment-grade | 17% | 67% | 16% | +1 |
Source: Citi Wealth, 2026/27 Global Family Office Report, pp. 39-40. Shares of respondents. Net figures as published; they may differ by one point from the displayed components.
| Respondent region | Share planning an increase |
|---|---|
| Asia-Pacific | 5% |
| EMEA | 7% |
| Latin America | 16% |
| North America | 13% |
Source: Citi Wealth, 2026/27 Global Family Office Report, p. 41. Region identifies where the responding office is based. Shares of respondents, not planned portfolio weights.
Two cautions apply. Respondents differ between survey years, so the change is not a tracked shift within the same offices. The question also has no separate no-exposure category, so a response of maintain does not confirm an existing allocation. The data describe intentions; they do not measure a fall in assets or a fund outflow. [1]
What does the broader allocator survey show?
| View | Private credit | Venture capital |
|---|---|---|
| Increasingly attractive | 8% | 8% |
| Attractive, but selectively | 22% | 25% |
| Neutral, maintaining current allocation | 29% | 35% |
| More cautious, slowing deployment | 26% | 24% |
| Actively reducing exposure | 15% | 8% |
Source: iConnections, Global Allocator Report 2026, pp. 61, 63. Chart values; the narrative gives approximately 27% slowing private-credit deployment.
Combining the categories, 41% were slowing or reducing private-credit exposure and 30% found it increasingly or selectively attractive. For venture capital the split was 32% and 33%, with 35% neutral. [2]
The population differs from Citi's. iConnections surveyed more than 500 investors in person at Global Alts Miami 2026. Family offices made up 44% of attending LPs, and 72% of LP attendees came from North America. The two surveys stay separate; we do not pool them into a single investor average. [2]
Why does private credit still attract attention?
Cautious sentiment coexists with high activity. Private credit accounted for 13% of reported fund interactions at Global Alts Miami 2026, second only to long/short equity at 19%. [2]
The report also places private credit among categories with weaker demand relative to manager supply. Absolute attention and relative demand are separate measures. A large category may draw many meetings while more managers compete for each allocation. [2]
The report groups private credit with venture capital, private equity, liquid credit, real assets and infrastructure as categories facing weaker relative demand. It classifies long-only equity, long-only fixed income and real estate as broadly balanced against supply. [2]
What do selective investors want to understand?
When sentiment turns selective, a category label tells an allocator little. The iConnections authors recommend that managers in crowded private categories address downside analysis, manager-selection discipline and alignment of interests. That is the authors' interpretation of allocator behaviour, not a ranked survey of criteria. [2]
For a private-credit manager, the questions follow from that:
- Underwriting. How the manager assesses borrowers and structures protection.
- Sourcing. Where deal flow originates and how concentrated it is.
- Exposure. Sector and stage mix, and overlap with existing holdings.
- Valuation. The process used and the role of third parties.
- Liquidity. Commitment period, distributions, redemption terms and transfer restrictions.
- Economics. Management fee, performance fee, hurdle and calculation basis.
Our article on liquidity in a diversified portfolio covers commitment terms in more detail.
Does cautious sentiment mean capital is leaving?
The evidence does not show that. Both surveys measure intentions and opinions, not executed allocations. A shift in net sentiment says nothing about the size of any reduction. [1, 2]
What the data support is narrower: within private credit, allocators want differentiation. Gnosis introduces institutional allocators to managers regulated in their home jurisdiction and evaluates them through Allocator IQ; the allocation decision stays with the allocator. See the manager universe and strategy coverage.
Frequently asked questions
Are family offices exiting private credit?
The data do not show exits. In Citi Wealth's 2026/27 Global Family Office Report, 22% of family offices plan to decrease private-credit exposure, 68% to maintain it and 10% to increase it. These are intentions, not flows.
How much do family offices allocate to private credit?
Private credit accounts for 2% of the reported global allocation in Citi Wealth's 2026/27 Global Family Office Report, which excludes concentrated positions.
Why do the Citi and iConnections figures differ?
They survey different populations with different questions. Citi covers 351 family-office clients; iConnections surveyed more than 500 investors at an alternatives event. The figures are best read separately.
Does the caution extend to other credit?
Partly. In Citi Wealth's 2026/27 Global Family Office Report, developed corporate high-yield fixed income shows a net reading of minus 10 points and emerging-market fixed income minus 6, while developed investment-grade fixed income sits at plus 1.
Is private credit still drawing allocator attention?
Yes. It accounted for 13% of fund interactions at Global Alts Miami 2026, second to long/short equity at 19%, according to iConnections' Global Allocator Report 2026.
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; net sentiment figures as published. pp. 39-41, 51-53.
- iConnections, Global Allocator Report 2026. In-person survey of more than 500 investors at Global Alts Miami 2026, alongside attendee and meeting data; each measure has its own population. pp. 12-15, 30-33, 49-53, 60-63.