Goldman Sachs report shows family offices boosting public equities, trimming cash

Goldman Sachs found wealthy families were not pulling back from risk so much as changing where they wanted it, with 34% of surveyed family offices planning to reduce cash over the next 12 months and average public-equity allocations rising to 31% from 28% in 2023.

The bank’s third Family Office Investment Insights report, Adapting to the Terrain, drew on 245 decision-makers around the world, the largest participation in the series’ history. The snapshot pointed to steady overall positioning despite geopolitical tension and trade worries: private equity slipped to 21% of portfolios from 26% in 2023, while alternatives edged down to 42% from 44%. Goldman said the result was not retreat, but rebalancing.

That matters for Goldman’s private wealth and asset-management teams because it signals where the next client conversations are likely to go. Public equities have regained relative appeal, especially after two years of market dislocation made liquidity more valuable. Nearly 40% of respondents planned to increase public equity, and a similar share intended to raise private equity, but the tilt toward listed markets suggests that sophisticated investors want exposure they can move in and out of more easily while keeping some private-market exposure for diversification and income.

Private credit and real assets remained part of the mix. Reporting on the survey said 26% of respondents planned to increase private credit, reinforcing the idea that family offices are still hunting for yield without loading up on cash. For Goldman bankers, that creates room to pitch everything from structured solutions to private credit, public-market access and broader portfolio construction, especially for clients trying to stay invested in a higher-for-longer environment without giving up flexibility.

The technology trade was still pulling capital. Goldman said 58% of family offices expected to be overweight technology in the next 12 months, 86% were already invested in AI and 51% were using AI in their investment processes. That helps explain why this cohort is willing to keep rotating rather than sitting on the sidelines: they see both market opportunity and an operational edge in new tools.

Meena Flynn, Goldman’s co-head of global private wealth management and co-head of One Goldman Sachs, said the results showed extraordinary consistency in family offices’ approach despite geopolitical tensions and protectionist trade policies. For Goldman, the message to clients is straightforward: the cash pile is shrinking, liquid equity exposure is coming back, and the firms that can help wealthy families move between public markets, private credit and alternatives will have the stronger pitch.