Family Offices Pivot to Distressed Assets and UK Markets

The share of family offices targeting distressed and special situations jumped to 18.2 percent by September 2026, up from 10 percent the previous year. This shift toward value-capture in stressed markets is mirrored by an increased focus on the UK, where investor interest climbed to 30.8 percent. The trend is particularly pronounced among UK-based investors, whose appetite for domestic opportunities rose to 35.1 percent.

Simultaneously, the landscape for emerging talent has become increasingly hostile. Investors are signaling a clear preference for experience over novelty; interest in managers with less than two years of performance history fell to 28.3 percent, while appetite for first-time funds dropped to 19.2 percent. Toby Abel, chief technology officer at AYU, notes that families view current market dislocation as both a defensive shield and an opportunistic play.

Within this risk-averse environment, private credit remains the sole asset class to maintain positive momentum, rising to 22 percent. Growth here is driven primarily by European demand, where asset-based lending has emerged as the most sought-after strategy. AYU, which monitors these shifts through its proprietary matchmaking service, currently vets over 500 family offices, enforcing strict criteria to ensure participants manage assets exceeding $50 million.