Family Offices Shift Portfolios Toward Public Equities Amid Private Equity Pullback
A recent survey conducted by Goldman Sachs highlights a notable shift in investment strategies among family offices managing ultra-high-net-worth wealth. These entities have increased their allocations to public equities while scaling back their private equity holdings over the past two years.
Rising Stock Allocations and Declining Private Equity Exposure
The survey, which polled 245 family offices globally between May 20 and June 18, 2025, found that the average allocation to public equities rose to 31%, up 3 percentage points from 28% in 2023. In contrast, private equity allocations fell from 26% to 21%, representing the most significant change among surveyed asset classes.
Family offices based in the Americas showed a more pronounced increase in stock exposure, raising their average allocation from 27% to 31%. Their private equity allocation decreased by 2 percentage points to 25%, still higher than their international counterparts.
Risk Appetite and Market Conditions
Goldman Sachs’ Tony Pasquariello characterized these portfolios as maintaining a “pro-risk asset mix,” given the sustained private equity exposure despite growing concerns around geopolitical tensions and inflationary pressures. More than 75% of respondents anticipate tariffs will remain steady or increase and expect valuations to either stabilize or decline over the next 12 months.
Sara Naison-Tarajano, leader of Goldman Sachs’ Apex family office business, noted that U.S.-based family offices often face significant tax implications when divesting. Consequently, they tend to invest opportunistically during market downturns, as seen in April when tariff-related volatility presented buying opportunities.
Embracing Artificial Intelligence Investments
The survey also revealed a strong interest in artificial intelligence (AI) investments, with 86% of family offices involved in AI-related assets. Public equities and exchange-traded funds (ETFs) remain the preferred vehicles for AI exposure. Other popular avenues include investments in data centers and venture capital funds focused on AI technologies.
Private Equity: Opportunistic but Cautious
Despite the overall decrease in private equity allocation, 39% of family offices plan to increase their investments in the asset class over the next year—the highest among all categories. Meena Flynn, co-head of Goldman Sachs’ global private wealth management, highlighted that family offices are increasingly investing in secondary private equity markets, with 72% participating in secondaries compared to 60% in 2023.
Unlike endowments and foundations pressured by liquidity needs, family offices can afford to hold assets across generations without immediate exit concerns, enabling them to capitalize on discounted opportunities amid slower exit environments.
Risk Management and Geographic Diversification
While most family offices do not expect significant portfolio changes in the coming year, more are inclined to increase rather than decrease allocations across asset classes. Only 16% plan to raise cash holdings.
Regarding risk mitigation, geographic diversification is the most favored strategy, cited by 53% of respondents, followed by gold at 24%. Although gold constitutes less than 1% of the average portfolio, some family offices allocate as much as 15%, particularly in regions facing political instability. Flynn noted that some clients prefer physical gold holdings with traceable serial numbers for enhanced security.
Asian family offices exhibit a higher propensity for cryptocurrency investments, with only 26% showing disinterest compared to nearly half of their counterparts in the Americas and Europe. Overall, crypto exposure among family offices increased to one-third in 2025, up from 26% in 2023 and doubling since 2021. Interest in crypto remains strongest in Asia, driven partly by geopolitical concerns.
Conclusion
The Goldman Sachs survey underscores a nuanced repositioning of family office portfolios, balancing increased public equity exposure and AI investments with selective private equity engagement. This strategy reflects a measured response to prevailing market uncertainties, tax considerations, and long-term wealth preservation goals.
FinOracleAI — Market View
The shift toward higher public equity allocations signals increased liquidity and responsiveness to market valuations among family offices, potentially supporting equity markets in the near term. The reduction in private equity exposure introduces some caution, as these investments traditionally offer higher returns but entail longer lock-up periods and exit risks. Continued interest in AI-related assets and opportunistic private equity secondaries suggests family offices are seeking growth sectors while managing risk.
Risks include geopolitical tensions and inflationary pressures that could disrupt market stability. Monitoring tariff developments and valuation trends will be critical. The growing embrace of alternative hedges like gold and cryptocurrency indicates diversification strategies aimed at mitigating tail risks.
Impact: positive
