<strong>Forty percent of family offices surveyed by Goldman Sachs plan to increase allocations to equity in the next twelve months, split evenly between public and private markets. The survey, conducted in Q1 2025, polled 242 single-family offices managing a combined $1.4 trillion in assets. The findings mark a departure from the defensive posture that dominated 2023 and early 2024, when cash positions averaged 18% of portfolios and duration bets anchored fixed-income sleeves.

The shift is structural, not sentiment. Family offices are not rotating out of alternatives or reducing hedge fund exposure. They are compressing cash positions and trimming low-conviction fixed-income holdings to fund equity increases. Public equity allocations currently average 26% of total assets under management, while private equity sits at 31%. The planned increases would push both above 34% by year-end, assuming follow-through matches stated intent. Goldman's data shows 62% of respondents cite valuation opportunity in technology and healthcare equities as the primary driver, while 48% point to private credit saturation as a reason to recycle capital into buyout and growth equity vehicles.

This matters because family office capital moves slower and stays longer than institutional money. These allocators do not face quarterly redemption windows or benchmark pressure. When 40% signal a directional shift, the capital follows over 18 to 24 months, not weeks. The survey also reveals 29% of family offices plan to reduce real estate allocations, the highest percentage since Goldman began tracking the data in 2019. Commercial real estate, specifically office and retail, is the target. Respondents managing over $500 million were twice as likely to cite real estate reduction as those below that threshold, suggesting larger offices are exiting legacy positions that smaller peers still hold.

The equity preference is not a growth-versus-value call. It is a liquidity-and-duration call. Family offices are buying optionality. Public equity provides mark-to-market transparency and exit flexibility. Private equity, particularly in $50 million to $200 million fund commitments, offers governance control and longer hold periods that align with generational wealth transfer timelines. The survey shows 34% of respondents are actively re-architecting portfolio construction frameworks, moving away from traditional 60/40 structures toward liability-matched buckets that reflect family-specific liquidity needs and tax optimization.

Operators should watch three follow-on signals. First, family office co-investment volume in private equity deals will likely rise 15% to 20% by Q3 2025, as direct stakes replace blind-pool fund exposure. Second, public equity managers who can articulate tax efficiency and portfolio turnover discipline will see disproportionate inflows, as family offices prioritize after-tax returns over gross alpha. Third, commercial real estate funds with 2025 and 2026 final closes will face harder conversations, as family office allocators redirect capital to equity structures with clearer exit paths.

The Goldman survey does not ask if family offices believe in a bull market. It asks where they are putting money, and 40% answered equity with enough conviction to move billions over the next year.