In a world increasingly defined by economic friction, geopolitical tension, and technological acceleration, the wealthiest families on Earth are rewriting the rules of investing. According to Goldman Sachs’ new Family Office Investment Insights Report, which surveyed 245 global family offices managing billions in assets, the dominant theme in 2025 is one of measured offense: balancing protection against tail risk while moving decisively into sectors like technology, infrastructure, and private credit.
Here are five key insights from the Goldman Sachs report and how they reflect the strategic mindset of the world’s financial elite:
Geopolitical Conflict Is the Top Risk and Gold Is Back in Vogue
Family offices aren’t worried about a tech bubble or earnings collapse, they’re worried about global instability. In fact, 61% of respondents cited geopolitical conflict as a top-three risk, followed closely by political instability (39%) and recession (38%).
How are they responding? One word: gold. In regions like APAC and the Middle East, wealthy families are actively increasing their gold allocations as a hedge. According to Goldman, 24% of respondents are now using gold to position against tail risk a sharp uptick that mirrors a renewed appreciation for hard assets in uncertain times.
Public Equities Are Back, Especially in AI
While many institutional investors have trimmed public equity exposure, family offices are leaning in. 38% expect to increase their allocations to public markets over the next 12 months, with a strong overweight to technology. Why? Artificial Intelligence.
An astounding 86% of family offices now have some form of AI investment, mostly through public equities in megacap tech and ETFs. Many are also allocating to “second-order” AI plays infrastructure, energy, and industrials that will benefit from the massive surge in data processing and compute demand.
Private Credit and Infrastructure Are Emerging Favorites
With interest rates stabilizing and bank lending tightening, private credit has become a standout opportunity. Nearly three-quarters of family offices now invest in private credit, and over one-quarter plan to increase allocations in the next year. They’re drawn to its seniority, tighter covenants, and ability to offer downside protection.
Infrastructure, too, is booming fueled by digitization, aging populations, and realignment of global supply chains. 56% of respondents invest directly in infrastructure, often tied to long-duration projects with tangible cash flow, such as medical centers, data centers, and logistics hubs.
Both asset classes reflect a “utility-like” mindset: predictable, cash-yielding, and inflation-hedged.
Private Equity Is Evolving Not Retreating
Contrary to media headlines about a private equity slowdown, Goldman’s data suggests something more nuanced. While overall allocations to private equity dipped slightly to 21% globally, 39% of family offices plan to increase exposure, particularly in growth equity.
The challenge is not conviction it’s liquidity. Family offices are using secondary markets more actively than ever (72% participate), enabling them to buy into mature portfolios at discounts and reduce the “J-curve” typical of traditional PE investing.
As exit activity (IPOs, M&A) picks up in late 2025, expect private equity to roar back into the spotlight.
Cash Is Still King, But Capital Is Ready to Deploy
Despite their optimism, family offices are holding significant liquidity. Cash allocations remain at 12%, signaling a barbell strategy: dry powder on one end, risk-on opportunities on the other.
That’s about to change. 34% of respondents plan to reduce cash holdings in the coming year suggesting a growing readiness to pounce on dislocations and asymmetric bets. As Goldman puts it, family offices have the freedom to act as “first movers when opportunities arise.”
Final Thought: Agility, Patience, and Passion
The most underappreciated asset of the ultra-wealthy may be their time horizon. Free from the quarterly pressures of Wall Street, family offices invest with a mix of agility and patiencebetting on themes that may take a decade or more to mature.
From gold bars in Swiss vaults to AI chips powering the next industrial revolution, today’s family office is both a steward of legacy and a frontier investor. In a world of noise, their strategy speaks with quiet clarity. And perhaps that’s the biggest takeaway of all.
Author’s Note: Robert Daugherty is a Forbes contributor focused on family offices, investing, and the intersection of legacy and innovation.