Key Trends in Institutional Family Offices: Insights from Goldman Sachs Symposium

Goldman Sachs Hosts Fifth Annual Apex Family Office Symposium, Highlights Investment Trends

Institutional family offices have emerged as major players in both public and private markets, showcasing their growing size, sophistication, and influence. These family offices have increasingly complex needs that span the global landscape, requiring experienced advisors to navigate bespoke investment opportunities, curated content, and networking with peers.

Goldman Sachs recently hosted its fifth annual Apex Family Office Symposium, bringing together 170 family office investors from 15 countries worldwide. The event focused on discussing macroeconomic environments, opportunities in public and private markets, geopolitical landscapes, M&A and capital markets trends, multigenerational family office strategies, thematic investing, and more.

One key trend highlighted during the symposium was the high allocation of family offices to alternative investments, with 44% of institutional family offices reporting significant investments in this asset class. Private equity and private credit have consistently outperformed global public markets over 10, 15, and 20-year time horizons, according to Cambridge Associates.

A live poll conducted at the event revealed that 60% of attendees planned to increase exposure to private equity in the coming year, while 53% and 41% planned to add exposure to public equities and private credit, respectively. Family offices, known for their long-term investment approach, are able to make strategic investment decisions without the pressure of meeting short-term benchmarks.

Artificial intelligence emerged as a major focus area for family offices, with early movers in the AI sector experiencing significant outperformance. Family offices are now looking at second and third-order beneficiaries of AI technology, such as data centers, energy infrastructure, and electric component producers.

Real estate also remains a prominent theme for family offices, with many leveraging their experience in the asset class over multiple investment cycles. The sports ecosystem has also captured the attention of family offices, with increasing interest in opportunities within the industry.

Energy transition was another key topic of discussion, with family offices actively seeking investment opportunities in green hydrogen, storage, nuclear power facilities, batteries, electric vehicles, and more.

Overall, family offices are seen as important indicators of upcoming investment trends, with their long-term patient capital well-suited for emerging sectors and companies. As these family offices continue to play a significant role in the investment community, investors are advised to keep a close eye on their moves for potential opportunities in the market.