Key Takeaways
- • Family offices raised their average public equity allocation to 31% from 28% in Goldman Sachs' 2023 survey, a 3-percentage-point increase, according to the bank's latest poll of 245 family offices.
- • Private equity allocations fell from 26% to 21% over the same two-year period, the largest shift of any asset class surveyed.
- • Family offices in the U.S. and the Americas lifted equity allocations from 27% to 31%, while cutting private equity by 2 points to 25%, still above international peers.
- • 86% of respondents report AI exposure, mainly through public equities and ETFs, with data centers and AI-focused VC funds as secondary options.
- • Secondaries are gaining favor: 72% of family offices invest in them, up from 60% in 2023, and 39% plan to add private equity exposure over the next 12 months.
Summary
Family offices have increased their exposure to public stocks while scaling back private equity, according to a new survey by Goldman Sachs. Ultra-wealthy families' investment firms reported an average allocation of 31% to public equities, up 3 percentage points from the bank's last poll in 2023. Over the same period, private equity allocations declined from 26% to 21%, the largest change among all surveyed asset classes. The survey polled 245 family offices worldwide, two-thirds of which manage at least $1 billion, between May 20 and June 18.
The shift toward equities was most pronounced among family offices in the U.S. and the Americas, which raised average equity allocations from 27% to 31%. Their private equity allocation fell 2 percentage points to 25%, though it still exceeds that of international peers. Tony Pasquariello, global head of hedge fund coverage at Goldman Sachs, described the overall portfolio as a "pro-risk asset mix," noting family offices have maintained relatively high private equity exposure despite concerns about geopolitical risks and inflation.
Sara Naison-Tarajano, leader of Goldman Sachs' Apex family office business, said U.S. family offices can face substantial tax bills when making significant divestments. She added that family offices tend to invest opportunistically when other market participants retreat, as they did in April when tariff announcements roiled markets. Meena Flynn, co-head of global private wealth management at Goldman Sachs, said family offices are still pursuing opportunistic private equity plays, with 72% investing in secondaries, up from 60% in 2023. Flynn noted that family offices can buy attractive assets at a discount and hold them across generations without facing the exit pressures affecting endowments and foundations.
The survey found 86% of respondents have some AI exposure, with public equities and ETFs the preferred vehicle, followed by data centers and AI-focused venture funds. Looking ahead, 39% of family offices plan to increase private equity investments over the next 12 months, the highest of any category, while 38% intend to add to stocks. A third plan to deploy more capital overall, and only 16% plan to raise cash holdings. Across the survey, a third of family offices hold crypto, up from 26% in 2023, with Asian family offices showing the most interest in entering the asset class.
The shift toward equities was most pronounced among family offices in the U.S. and the Americas, which raised average equity allocations from 27% to 31%. Their private equity allocation fell 2 percentage points to 25%, though it still exceeds that of international peers. Tony Pasquariello, global head of hedge fund coverage at Goldman Sachs, described the overall portfolio as a "pro-risk asset mix," noting family offices have maintained relatively high private equity exposure despite concerns about geopolitical risks and inflation.
Sara Naison-Tarajano, leader of Goldman Sachs' Apex family office business, said U.S. family offices can face substantial tax bills when making significant divestments. She added that family offices tend to invest opportunistically when other market participants retreat, as they did in April when tariff announcements roiled markets. Meena Flynn, co-head of global private wealth management at Goldman Sachs, said family offices are still pursuing opportunistic private equity plays, with 72% investing in secondaries, up from 60% in 2023. Flynn noted that family offices can buy attractive assets at a discount and hold them across generations without facing the exit pressures affecting endowments and foundations.
The survey found 86% of respondents have some AI exposure, with public equities and ETFs the preferred vehicle, followed by data centers and AI-focused venture funds. Looking ahead, 39% of family offices plan to increase private equity investments over the next 12 months, the highest of any category, while 38% intend to add to stocks. A third plan to deploy more capital overall, and only 16% plan to raise cash holdings. Across the survey, a third of family offices hold crypto, up from 26% in 2023, with Asian family offices showing the most interest in entering the asset class.
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