Single-family offices often have private foundations under their purview—how did the investment performance at yours stack up against others in 2025?
For the third year in a row, the average foundation endowment posted double-digit annual returns, according to a yearly study of 285 private and community foundations by the asset management firm Commonfund and the Council on Foundations. The study included foundations of various sizes located throughout the U.S.
Among the 171 private foundations that participated in the study, the average return in 2025 was 14.1%, up from 10.3% in 2024. The 114 community foundations barely beat them, with an average 2025 return of 14.7%, up from 11%in 2024. All the returns reported are net of fees.
Three straight years of double-digit returns is a record for the annual survey, which began in 2014, and a welcome one. Average returns were a record low in 2022 (-12% for private foundations and -13.3% for community foundations).
Larger private foundations also performed slightly better than smaller ones. Private foundations with assets over $500 million had an average annual return of 14.5%; $101-500 million had 14.2%; and those under $101 million had 13.5%. Alternative investments drove returns in 2025, especially for the private foundations invested in secondaries (20.6%), commodities and managed futures (20.1%), venture capital (12.7%) and various hedge-fund strategies (11.8%). Private foundations allocate about 45% of their portfolios to alternative investments, similar to the asset allocations of large family offices, which change little year over year.
Most family offices are similar in size to the nearly 300 institutions surveyed. Those hoping to emulate those portfolios and get similar annual returns should know that roughly half outsource some or all of their portfolio management.
Outsourced investment offices (OCIOs) were used by 39% of private foundations and 47% of community foundations. Both percentages were within one percentage point of the previous year’s. The percentage of similarly sized university endowments is even higher; 60% now work with an OCIO.
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Modus is co-hosting its first-ever event on September 15 in New York City: Family Office Venture Investing: Managing Your Portfolio of Startups—and Liquidity—Now and In the Future.
Many single-family offices routinely invest directly in early-stage companies. But along with the potential benefits, these programs have also increased the complexity of investment decision-making, liquidity planning, administration and infrastructure.
I’m leading a frank discussion with two people who are helping single-family offices navigate the above, but who come from very different places: Matt Krna, founder and managing partner at Two Meter Capital, and Alison Davis, managing director and family office strategist at a large private bank. There will be time for Q&A, and attendees can socialize over drinks and hearty hors d'oeuvres right after. Request to attend here.
There are a lot of family-office events. Why come to this one?
Modus is uniquely positioned to produce gatherings that are fundamentally different from almost all others. When led by independent journalism, events can be truly attendee-centric: more timely, informed, impartial, and transparent.Aaron Hatton, a co-founder of Copia Wealth Studios, a software platform that does performance reporting and offers other tools, has left the company and joined Stable Rock, an outsourced services firm for asset managers, family offices, and other businesses.
The FT has big questions for Gregory Fenelon, the (self-declared) $14 billion man.
The men behind Major Food Group's dozens of restaurants, private clubs, hotels, and residences have an offer you can’t refuse, which GQ detailed in a long feature.
Jobs
InLight Capital, a single-family office in Sugar Land, Texas, is looking for an experienced CPA.
Legacy Knight is hiring an investment analyst in Dallas. They want a more junior, smart self-starter, and you’re already skilled at FactSet, Addepar and Claude; you’ve got an edge over other candidates.
Lazard Family Office Partners (which just lost Casey Whalen to BDT & MSD Partners) is hiring an AUM reporting analyst in New York City. This is not a “knows Addepar” role; they want someone who knows SQL and, ideally, Python and more. Salary is $130,000.
Northern Trust’s global family office group (which got a new CIO in the spring) is hiring a senior portfolio advisor in Chicago. Candidates should have ~15+ years of experience. The job offers a salary of $225,000 and other benefits.
OTHER STUFF
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I’LL BE…
In MetLife Stadium watching Bruno Mars in a couple of hours.
Around N.Y.C.
At the first Modus event on September 15.
