High-net-worth families are predicting turbulent times ahead, whether it be geopolitics (this especially applies to families in the Asia-Pacific region), political instability or recession. Yet their asset allocation trends remain steady with risk assets still in favour.
Family offices are not shying away from risk assets, despite heightening concerns over geopolitical conflict, political instability and economic recession, according to the third Goldman Sachs Family Office Investment Insights report, Adapting to the Terrain.
No different to 2023, geopolitical conflict remains the most frequently cited investment risk, with 61 per cent of respondents listing it among their top three concerns, with 66 per cent expecting these risks to rise over the next year. In the Asia-Pacific (APAC) region, this risk is particularly pronounced at 75 per cent.
Political instability (39 per cent) and economic recession (38 per cent) follow, with global tariffs close behind (35 per cent).
Most now view higher tariffs as the new norm, with 77 per cent expecting greater economic protectionism and 70 per cent anticipating tariff rates will hold steady or rise over the next 12 months. Even so, respondents broadly view the fundamental drivers of global growth and long-standing investment themes as intact.
The report, which drew on 245 respondents globally – 47 per cent, Americas; 26 per cent, Europe, Middle East, Africa (EMEA); 27 per cent APAC – says family offices continue to maintain strong allocations to risk assets. Average allocations were reported as:
Public equities: 31 per cent in 2025, up from 28 per cent in 2023.
Alternatives: 42 per cent in 2025, slightly down from 44 per cent in 2023. Shifts include:Private equity: 21 per cent in 2025 vs 26 per cent in 2023.Private real estate and infrastructure: 11 per cent in 2025 vs nine per cent in 2023.Private Credit: four per cent in 2025 vs three per cent in 2023.
Hedge Funds: Steady at six per cent since 2023.
Fixed Income: 11 per cent in 2025, up from 10 per cent in 2023.
Commodities: Steady at one per cent since 2023.
Cash (excluding US Treasuries): 12 per cent in 2025, unchanged from 2023.
The report says asset allocation trends remain steady with modest adjustments amid evolving market conditions.
Public equity allocations returned to 2021 levels alongside a pull-back in private equity, as muted exits weighed on commitments.
“The most modest change was among family offices in the Americas that have the largest allocation to private equity at 25 per cent versus 22 per cent in EMEA and 15 per cent in APAC. However, this trend has already begun to reverse course, as reflected in future allocation plans.
“Meanwhile, allocations to private real estate and infrastructure and private credit edged higher, underscoring demand for current yield. Nearly half of respondents (44 per cent) invest primarily directly in private real estate, leveraging their operational expertise, while they continue to rely primarily on managers for other alternatives.”
The report says private credit has emerged as a key growth area with the proportion of family offices without exposure to private credit falling to 26 per cent from 36 per cent in 2023, as investors seek to benefit from elevated rates and perceived downside protection among other attractive factors.
“While hedge fund allocations remain steady globally, there is significantly more interest from family offices in EMEA and APAC in allocating more to the asset class. Regionally, portfolios remain anchored to the US, while outside their home base, family offices most often allocate to nearby markets: 89 per cent of EMEA respondents to the Euro area and 80 per cent of APAC respondents to China.
Higher risk premia
Tony Pasquariello (pictured), global head of hedge fund coverage and co-head of One Goldman Sachs, says family offices continue to favour investment strategies that balance structural resilience with higher risk premia.
“Their allocations to hedge funds and private markets reflect a long-term commitment to both preserve capital and position for growth.”
Looking ahead, family offices expect to keep strategic allocations stable while making selective shifts that balance patience with opportunity.
“Family offices are signalling confidence in long-term growth while remaining disciplined in their approach,” says Sara Naison-Tarajano, global head of Apex and Private Wealth Management Capital Markets and co-head of the One Goldman Sachs Family Office Initiative.
“They’re prepared to stay the course, but also to lean into areas like private credit and public equities where they see compelling opportunities to generate returns.
“Family offices’ patient capital allows them to invest at the forefront of innovation and many of our clients have the sophistication to invest directly in private placements and other bespoke opportunities.”
Ken Hirsch, co-chairman of the Global Technology, Media & Telecom Group and co-head of the One Goldman Sachs Family Office Initiative, adds that family offices are embracing AI as an investment theme and as a tool to sharpen their own processes.
“Alongside technology, they are increasingly active in areas like digital assets, secondaries and sports, underscoring a willingness to embrace innovation and diversify into new sources of value creation.”
