“These investors have a growing influence on capital markets, and their influence continues to grow,” said Meena Lakdawala Flynn, co-head of Global Private Wealth Management for Goldman Sachs and co-author of Family Office Investment Insights, a survey of 245 family offices worldwide.

Two-thirds of those single family offices reported a total net worth of at least $1 billion, while one quarter had more than $5 billion. Their average annual return target, Flynn said, is 10 per cent.

So where are these powerful, long-term, multi-generational investors putting their money now? What do they see on the horizon, and what worries them?

Worried but resolute
Given today’s headlines, it is hardly surprising that respondents cited geopolitical conflict as the greatest investment risk they face, followed by political instability, economic recession, and global tariffs exceeding market expectations.

“Escalating international tensions, policy shifts and the looming threat of trade wars are all shaping family office sentiment,” the report said.

Despite these concerns, these ultra-wealthy investors remain “overwhelmingly risk-on,” according to Sara Naison-Tarajano, global head of Goldman Sachs Apex & Private Wealth Management Capital Markets and co-author of the report.

“The broad takeaway is how little asset allocation has changed for most institutional family offices,” she said. “Family offices realize the importance of staying invested, and they’re not letting fears get in the way.”

Allocations
Asset allocation to public equities , alternatives , fixed income and cash remained nearly identical to the 2023 Goldman family office survey.

The largest change came in private equity, where exposure declined as limited partners hesitated to recommit to new vintages or managers. However, the report noted that the trend is already reversing amid stronger IPO and M&A activity.

Private credit emerged as a key growth area. The proportion of family offices without exposure fell to 26 per cent from 36 per cent in 2023, as investors sought to benefit from higher rates and downside protection.

Looking ahead, one-third of surveyed family offices plan to reduce their allocation to cash and cash equivalents, while nearly 40 per cent expect to increase their exposure to public equities and private equity.

“Growth equity is a particular area of opportunity for family offices,” the report stated, “as the demand for capital exceeds supply.”

Emerging investment themes
Most large family offices are already invested in artificial intelligence. Half reported using AI in investment processes, and 58 per cent expect their portfolios to overweight technology more broadly within the next 12 months.

Sports and healthcare are also gaining momentum. One quarter of family offices are already invested in sports, and another 25 per cent said they are interested in leagues, teams, events, or related companies. The sector’s diverse revenue streams, long duration, and relative resilience make it attractive, Flynn said.

Family offices are also beginning to overweight healthcare, drawn to the ability of new companies to disrupt the market and consumers’ shift from reactive to proactive care.

Interest in crypto rising
Digital assets remain a niche but growing theme. One-third of respondents are currently invested in cryptocurrency, but interest in future investment nearly doubled year-over-year, from 12 per cent to 23 per cent.

Family offices in the Asia-Pacific region expressed the greatest enthusiasm, with three-quarters either invested or interested in digital assets. Asia-Pacific respondents made up 27 per cent of the survey, Europe/Middle East/Africa accounted for 26 per cent, and North American family offices represented the balance.