Goldman Sachs family office survey: allocations and digital assets
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Summary of Goldman Sachs' family office investment insights: alternatives allocations, fixed income plans, geographic split, and a sharp drop in appetite for crypto among non-invested family offices.
Key claims
Alternatives are 44% of family office holdings
32% invest in digital assets; crypto-invested share rose from 16% to 26%
Not invested and not interested rose from 39% to 62%
0/ I read the report "Eyes on the Horizon: Family Office Investment Insights" by @GoldmanSachs so you don't have to 馃摎馃攳
find a link to the report & a summary of the key takeaways, efficiently curated with the help of #AI below 馃馃搳
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1/ family offices continue to hold outsized allocations to alternative investments. Collectively, private equity, private real estate and infrastructure, hedge funds, and private credit account for 44% of holdings
2/ while many expect to maintain their current allocations over the next 12 months, there will be movement, with a considerable number of family offices expecting to increase their holdings in private equity, private credit, and private real estate and infrastructure
3/ a substantial proportion (39%) of family offices plan to increase their holdings in fixed income over the next 12 months, possibly in response to the prospect of higher yields in lower-risk instruments
4/ cash and cash-equivalent holdings, currently 12% of family office portfolios, which is high compared to that of other investors, are expected to fall, with 35% of respondents expecting to deploy this capital in the coming year as opportunities arise
5/ family offices are taking a similarly steady approach to their geographic allocations, with a strong focus on U.S. and other developed markets, which represent 63% and 21% of holdings respectively
6/ perhaps reflecting their greater concerns about geopolitical developments, 41% of APAC family offices expect to increase their allocation to U.S. holdings in the coming year
7/ family offices remain focused on secular growth themes that have the potential to endure business cycles and drive value over the long term:
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馃敼 43% of family offices globally consider their portfolios to be overweight information technology
馃敼 34% of family offices are currently overweight healthcare
9/ across products, 32% of family offices currently invest in digital assets. Within the digital-asset ecosystem, family offices have become more decisive about cryptocurrencies: the proportion that are invested has risen from 16% in 2021 to 26%
10/ however, the proportion that are not invested and not interested for the future has risen from 39% to 62% and those that are potentially interested for the future has fallen from 45% to 12%
11/ most (76%) family offices support families with operating businesses and, of that cohort, 44% have a role in running their operating businesses
12/ among the latter, the most-cited potential catalyst for a sale is a favorable valuation (56%), though many (35%) plan to hold these assets in perpetuity
13/ check out the report here 馃搳馃憞
bit.ly/familyofficereport
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