Family Offices Plan 40% Jump in Equity Stakes as Private Markets Cool

Nearly 40% of family offices surveyed by Goldman Sachs intend to increase allocations to both public and private equity in 2026, marking the first broad-based return to listed markets since the zero-rate era ended. The shift arrives as illiquidity discounts in private markets widen and distribution waterfalls slow to a trickle.

The Goldman research, published this month, captures sentiment from family offices managing a combined $6 trillion in assets. The 40% figure represents families planning to raise exposure in *either* public or private equity, not both—though a subset plans increases across the capital structure. Public equity specifically saw the strongest uptick in planned allocations, reversing three years of net outflows into private credit and direct co-investments. The survey does not break out exact dollar commitments, but allocators typically move in 5-10% portfolio weight increments, implying potential inflows in the hundreds of billions if the intentions convert to wire transfers.

The timing reflects two pressures. First, private equity distributions have slowed to 0.3x annual returns in many vintages as exit markets remain uninviting. Families that loaded up on 2020-2021 funds now face J-curves stretching into year five with no clear monetization path. Public equity, by contrast, offers immediate liquidity and dispersion—the Russell 2000 alone holds 40% of its constituents trading below net asset value, a hunting ground for patient capital. Second, the Magnificent Seven rotation has created pockets of value in cyclicals, industrials, and energy names that family offices historically favor for multi-decade holds. Alpine Asset Management, a Switzerland-based family office, confirmed plans to scale its portfolio in 2026, citing "better entry points in listed equities than we've seen since 2018."

The move does not signal abandonment of private markets. The same survey shows continued appetite for private credit, particularly in the $25-100 million ticket size where banks remain scarce. But the 2019-2022 consensus—allocate everything to privates, clip illiquidity premiums, avoid mark-to-market pain—has cracked. Families now want optionality, and public equity provides the only true exit at scale. The CNBC coverage of the survey noted families are "dialing back" private equity, which overstates the case; the data suggests rebalancing, not retreat. But the direction is clear.

Operators raising private funds should expect tougher re-up conversations in Q1 2026. Families will demand clearer liquidity terms, co-investment rights, and fee reductions tied to deployment speed. Public-market allocators, conversely, should watch for family office RFPs in small- and mid-cap equity strategies, particularly those offering direct engagement with management teams. The Capital Group and firms with dedicated family office desks will see inbound interest rise through March.

Goldman's survey was published in the first week of the year, which means the portfolio shifts will begin appearing in 13F filings by mid-February and ILPA reports by April. The families moving first will set the terms for the rest of the cohort.