Widening the Aperture
A global survey of institutional family offices on
their investment interests and priorities
Family Office
Investment Insights
We surveyed more than 150 family offices globally
54%
23%
23%
Growing influence in capital markets
Family offices continue to grow in number and size amid increased monetization events and equity valuations
44%
22%
20%
7%
6%
> $5 Billion
_
$1-$4.9 Billion
< $250 Million
$250-$499 Million
$500-$999 Million
Structure for Investment
Managent Services
56%
In-house
39%
Hybrid
4%
Outsourced
1%
Not applicable
50%
< 5 People
35%
6-10 People
7%
11-20 People
8%
> 20 People
13%
11-20 People
11%
>20 People
30%
6-10 People
45%
< 5 People
1%
Not applicable
Investing Team Size
Operational Team Size
Capital appreciation for multigenerational wealth transfer and wealth preservation are the most common primary missions across all regions
Capital appreciation for multi-
generational wealth transfer
Wealth preservation
52
56
59
48
Diversification of concentrated wealth or single stock exposure
29
39
35
22
Legacy creation through philanthropic endeavors
23
22
15
27
Development and/or acqusition of operating businesses
19
7
22
23
Succession planning
16
20
15
15
Third-party capital fundraising
5
7
4
4
Other
3
2
0
5
Across those who selected "Other" global respondents noted risk management and tax and estate planning among their top three primary missions.
Americas
EMEA
Asia
Global
95% of respondents manage their investment needs in-house or have a hybrid model.
Family offices have an outsized allocation to alternative investments
Average Asset Allocation of Global Survey Respondents
Public market equities (31%)
Cash and fixed income (19%)
Private equity (24%)
Real estate (11%)
Hedge funds (6%)
Private credit (4%)
Commodities (1%)
Other (5%)
Alternatives (45%)
Total percentage may not add up to 100% due to rounding.
How they invest in alternatives is varied
Almost 3/4 of respondents who make direct investments reported they have the ability to lead capital raises
Americas
EMEA
Asia
Global
% of Respondents
30
62
54
43
65
35
46
54
5
3
0
3
Invest through managers
Invest directly
Do not invest
Private Equity
41
58
57
49
51
25
43
43
8
17
0
6
Invest through managers
Invest directly
Do not invest
Venture Capital
39
50
50
44
65
35
46
54
29
36
19
28
Invest through managers
Invest directly
Do not invest
Private Credit
27
22
29
26
65
61
54
62
8
17
17
12
Invest through managers
Invest directly
Do not invest
Private Real Estate
Almost 100% invest in private equity, and more than 90% invest in venture capital
% of Respondents
Family offices are using a range of methods to address current market dynamics
Those positioning for low rates
72
53
44
36
21
19
14
14
Among those who selected “Other,” some respondents mentioned investing in venture capital and private equity to position for a
prolonged low-rate environment.
Increasing
allocation
to equities
Reducing
cash/fixed
income
allocation
Investing
in cash-flowing
operating
businesses
Investing in
stabilized
real estate
Investing
in hedge
funds
Investing
in precious
metals
Investing
in digital
assets
Other
% of Respondents (Global)*
Those positioning for inflation
55
54
29
20
Across multiple regions, several respondents who picked “Other” cited investing in cryptocurrencies and operating businesses as ways to position for inflation.
% of Respondents (Global)*
Investing in
other hard assets
Increasing allocation
to equities
Investing in
precious metals
Other
42
37
33
32
Some respondents across regions noted in the “Other” field that they are increasing geographic diversification of their investments to position for potential currency debasement, while some in the Americas cited investing in art and other real assets.
% of Respondents (Global)*
Investing in
digital assets
Investing in
precious metals
Executing
currency hedges
Other
Those actively thinking about about currency debasement
*Respondents were able to select more than one option.
ESG is the biggest focus in EMEA
Extremely focused on ESG
Very focused on ESG
Moderately focused on ESG
Slightly focused on ESG
23
20
18
18
21
21
32
35
6
6
12
24
30
21
12
20
23
25
16
15
Americas
EMEA
Asia
Global
Philanthropic Efforts
10
25
32
19
14
Global
31
31
29
9
Asia
11
31
43
9
6
EMEA
Americas
14
19
29
19
19
Workplace Policies
5
14
41
21
19
Global
20
40
29
11
Asia
6
22
56
11
6
EMEA
Americas
6
8
35
22
29
Investing Strategy
% of Respondents.
Not at all focused on ESG
The takeaway
As agile and largely unconstrained investors, family offices have a fair degree of flexibility in managing and preserving their wealth. In our inaugural survey of family offices around the world, we found that, broadly speaking, family offices tend to be more aggressive in seeking superior returns but also more long-term oriented given their lack of defined investing timelines and absence of outside interference.
We will be keenly watching how responses change in the years ahead, as we expect the family office constituency will increasingly define the investment universe in which it operates.
The family office community has rapidly transformed. While industry metrics are limited and widely varied, our observations and experiences suggest that this investor base continues to grow in size and influence. Across this landscape, family offices differ substantially in their purpose, investment policy, and infrastructure.
Our inaugural Goldman Sachs family office report—Widening the Aperture: Family Office Investment Insights—draws from our firm’s first global survey of family office stakeholders and from our collective experience working with family offices. This report encapsulates the views of over 150 distinct family office decision-makers from every major region, along with our shared observations. We believe that providing a peek under the hood into the institutional family office cohort’s interests and priorities can reveal established and emerging tactics worth replicating for other asset managers looking to refine their own frameworks or to partner with this investor base.
Total percentage may not add up to 100% due to rounding.
95% of respondents manage their investment needs
in-house or have a hybrid model
Respondents were able to select up to three options.
80
76
78
82
Family offices are actively thinking about about rates, inflation and currency debasement
10
3
14
12
39
35
35
42
65
54
51
76
68
73
70
65
Americas
EMEA
Asia
Global
Government policies, economic growth, and equity valuations stood out among “Other” trends respondents are tracking in the Americas and EMEA.
Other
Currency debasement
An increase in inflation
Prolonged low-rate environment
Respondents were able to select up to three options.
About 60% of survey respondents have implemented ESG strategies in their portfolios, through a variety of methods, including direct investments in companies solving social or environmental challenges, and allocations to private and public managers
37
34
32
41
4
6
0
4
26
29
35
20
29
23
39
27
36
34
35
36
Americas
EMEA
Asia
Global
Other
ESG has not been
implemented in the portfolio
Allocation to public market
ESG portfolios or managers
Allocation to private market
(alternative investment)
impact managers
Direct investing into companies
that are solving social or
environmental challenges
Areas in Which Family Offices Are Investing with an ESG Lens
Family Offices Not Implementing
ESG Strategies in Their Portfolios
*Respondents were able to select more than one option.
Digital assets and ESG investing are top of mind for family offices
Drawn from the 80% who disclosed their total asset base
About 60% of survey respondents have implemented ESG strategies in their portfolios, through a variety of methods, including direct investments in companies solving social or environmental challenges, and allocations to private and public managers.
29
24
57
38
42
24
48
47
45
68
35
39
16
8
8
24
Americas
EMEA
Asia
Global
Yes
Do not currently
believe
cryptocurrency
is a good
store of value
No and not
interested
No but
interested
for the future
Invest in Any Form of Cryptocurrency
Reasons Not Currently Investing in Cryptocurrency
*Respondents were able to select more than one option.
38
42
33
39
38
55
39
28
14
24
15
8
10
24
6
5
32
27
33
34
8
6
0
14
Not currently
comfortable
with
infrastructure
Not familiar
with
cryptocurrency
Not part of
family office’s
mandate
Lack of bank
research
available
Cannot facilitate
for logistical
reasons
Other
A lack of government
endorsement and
high volatility were
among “Other” reasons
for not investing in
cryptocurrencies.
Respondents’ exposure to private credit is lower relative to other alternatives, while the majority of respondents invest directly in private real estate
While 16% reported they invest in cryptocurrencies today, 45% noted they may be interested in initiating exposure to cryptocurrencies in the future
Ken Hirsch
Partner, Co-Chairman,
Global Technology
Media Telecom, Investment Banking
Co-Lead, One Goldman Sachs
Family Office Initiative
Tony Pasquariello
Partner, Global Head,
Hedge Fund Coverage,
Global Markets
Co-Lead, One Goldman Sachs
Family Office Initiative
Meena Flynn
Partner, Co-Head,
Global Private Wealth
Management
Co-Lead, One Goldman Sachs
Family Office Initiative
Sara Naison-Tarajano
Partner, Global Head,
Goldman Sachs Apex and Private Wealth Management Capital Markets
Co-Lead, One Goldman Sachs
Family Office Initiative
Eliana Michaels
Vice President,
Private Wealth Management
Capital Markets
Chief of Staff, One Goldman Sachs
Family Office Initiative
To read the full report, click here.
If you would like to learn more about these topics and trends,
please reach out to your Goldman Sachs team.