Family Offices Plan to Deploy Cash into Risk Assets
Family offices across the globe are preparing to put more of their ample cash to work in private equity, private credit, and cryptocurrency over the next 12 months, according to Goldman Sachs’ third Family Office Investment Insights report, released today. While allocations have remained broadly stable since 2023, more than one-third of respondents (34% of 245 family offices surveyed) said they plan to reduce their 12% average cash weighting to pursue higher-risk, higher-return strategies.
While allocations to private equity have edged down from 26% in 2023 to 21% in 2025, 39% of family offices plan to increase exposure over the next year. This signals that private equity remains the anchor for long-term growth strategies, even amid valuation concerns. Advisors should anticipate continued demand for differentiated deal flow and fund access, especially in mid-market buyouts, venture growth, and secondaries.
Public equities (38%) and private credit (26%) followed closely, with the latter showing steady growth: average allocations rose to 4% in 2025 from 3% two years ago, reflecting investor demand for yield and portfolio diversification. For wealth managers, this validates the ongoing “retailization” of private credit and the appeal of income-generating, floating-rate strategies. Structuring vehicles that provide both liquidity options and downside protection will be key.
“Family offices continue to favor investment strategies that balance structural resilience with higher risk premia,” said Tony Pasquariello, global head of hedge fund coverage and co-head of One Goldman Sachs. “Their allocations to hedge funds and private markets reflect a long-term commitment to both preserve capital and position for growth.”
The survey also revealed rising interest in digital assets. Globally, 33% of family offices now invest in crypto, up from 26% in 2023 and 16% in 2021. A further 25% of respondents expressed interest in future crypto allocations, led by 39% of Asia-Pacific (APAC) offices. Despite this growth, two-thirds of family offices still avoid the sector altogether. For wealth managers, crypto is no longer a fringe allocation but a tactical sleeve within broader innovation themes. The challenge is ensuring proper custody, regulatory compliance, and risk frameworks to meet institutional standards.
“Half of respondents expect the probability of a U.S. recession to increase,” Goldman noted. “Despite these factors, the fundamental drivers of global growth and long-held investment themes appear to remain intact and family offices continue to demonstrate their willingness to ride out uncertainty.”
Geopolitical risks remain top of mind. Fully 61% of respondents cited geopolitical conflict as their primary concern, unchanged from 2023, with 66% expecting these risks to rise further in the next year. Political instability (39%) and economic recession (38%) also weighed heavily, while tariffs—despite widespread media attention—ranked fourth at 35%. “Family offices are evidently regarding tariffs and geopolitical risks as the new normal,” the report said.
As Meena Lakdawala Flynn, partner and co-head of Global Private Wealth Management and co-head of One Goldman Sachs put it: “The average return target for this group is 10% per annum…after fees.”
Achieving this requires bold allocations into private markets, opportunistic equity strategies, and emerging digital assets. Wealth managers who can curate access, structure vehicles with tax efficiency, and manage downside risk will be best positioned to capture this next wave of family office demand.
Technology remains the standout sector: 58% of family offices expect to overweight tech in the next 12 months, up from 43% in 2023. Artificial intelligence adoption is “widespread,” Goldman reported, with 86% of offices already exposed to AI, largely through public equities.
Geographically, the survey showed a diverse respondent base: 47% from the Americas, 26% from EMEA, and 27% from APAC. Roughly two-thirds of surveyed family offices had a net worth of $1 billion or more, underscoring their influence in global capital flows. Despite concerns about U.S. equity valuations, Goldman emphasized that U.S. markets remain the dominant allocation destination, driven by technological innovation, deep capital markets, strong earnings growth, and favorable demographics.
The trillion-dollar question is not whether family offices will expand into risk assets—but which managers, platforms, and advisors will be able to translate these preferences into implementable solutions. “Despite the noise, staying invested in U.S. equities has continued to pay off for long-term investors, including family offices,” Goldman concluded.
