Family offices tilt toward stocks, trim private equity exposure, according to Goldman survey

Family offices are leaning more heavily on public equities while trimming private equity exposure, according to a recent Goldman Sachs survey (pdf) picked up by CNBC. The survey of 245 global offices — two thirds of which managed at least USD 1 bn in assets — shows that average allocations to public equities rose to 31% in 2025, up three points from 2023, while private equity dropped to 21% from 26% — the steepest change across asset classes. 38% of family offices also expect to increase their allocations to public equities in the next year.

The shift was the sharpest in the Americas, where equity allocations climbed to 31% from 27%. US offices, however, remain more exposed to PE (25%) than their international peers. It comes as private equity faces a broader slowdown as limited and general partners pivot towards a more risk-on stance amid a more muted exit environment.

Goldman described the change to family office portfolios as a “pro-risk asset mix,” with family offices buying the dip in equities while still keeping a strong exposure to private equity. Many reported buying during April’s tariff-driven market turmoil, taking advantage of reduced-price valuations. “Family offices realize the importance of staying invested, and they realize the importance of vintaging, especially with private equity,” said Sara Naison-Tarajano, who heads Goldman’s Apex unit, pointing to their ability to hold assets across generations.

AI has emerged as a leading theme. Some 86% of family offices reported exposure, primarily via public equities and ETFs, but also through venture funds and infrastructure plays such as data centers. Opportunistic investments in listed markets remain the preferred route. Some 58% of respondents also expect to be overweight in the tech sector over the next year, the survey said.

Crypto is also gaining ground, particularly in Asia. Only 26% of Asia-Pacific (APAC) family offices said they were not interested, compared with nearly half of those in the Americas and EMEA. Globally, a third of family offices now hold crypto, up from 26% in 2023.

Risk hedging strategies differ across regions. In EMEA and APAC, geographic diversification and gold were the most common tail-risk hedges. In the US, by contrast, many family offices reported taking less defensive positions. The biggest investment risk for family offices is geopolitical conflict, with 61% listing it as a top-three risk, and 66% expecting geopolitical risks to increase over the next 12 months.

Despite dialing back exposure, private equity still holds appeal. Some 39% of respondents plan to deploy more capital in the next 12 months — slightly more than the 38% who expect to increase stock allocations. Many are active in secondaries, with participation rising to 72% from 60% in 2023, taking advantage as endowments and foundations sell assets under liquidity pressure.

MARKETS THIS MORNING-

Asian markets are mixed this morning, with South Korea’s Kospi leading gains, rising 0.7% to a record high and marking its tenth straight session of gains. Meanwhile, Hong Kong’s Hang Seng is up slightly in early trade, while China’s CSI 300 is also up 0.6%, as talks between the US and China on trade and the potential TikTok divestiture continue in Spain.

Meanwhile, on Wall Street, indices are set to open in the green as investors brace for what’s expected to be the US Federal Reserve’s first rate cut in months later this week.

THE CLOSING BELL-

The ADX rose 0.6% on Friday on turnover of AED 889.9 mn. The index is up 6.3% YTD.

In the green: Ins. House (+5.9%), Orascom Construction (+5%) and Abu Dhabi Commercial Bank (+3.4%).

In the red: United Arab Bank (-5.7%), Hayah Ins. (-5.6%) and Fujairah Cement Industries (-1.7%).

Over on the DFM, the index rose 1.2% on turnover of AED 548.2 mn. Meanwhile, Nasdaq Dubai was up 1.2%.

CORPORATE ACTIONS-

Agthia Group shareholders approved a dividend of AED 85.7 mn — 10.31 fils per share — for 1H 2025, as proposed by the board of directors, according to an ADX disclosure (pdf).

Salama eyes capital restructuring + sukuk issuance: Salama Ins. has approved a plan to cut its issued share capital by up to AED 475.7 mn, according to a disclosure (pdf). Following the reduction, the company plans to issue mandatory convertible sukuk worth AED 175 mn. Salama will convene a general assembly to seek shareholder approval for the restructuring, subject to prior clearance from the Central Bank of the UAE and the Securities and Commodities Authority.