Goldman Sachs on family office investment highlights
September 7, 2021
Family offices (“FO”) are becoming an increasing global force in investing. Goldman recently published their inaugural FO report, surveying more than 150 respondents globally. We share key highlights here:
- 56% manage funds in-house with only 4% outsources and balance using a hybrid strategy
- FOs have outsized allocations to alternative investments to chase higher yields and their ability to be patient capital
- 2/3 are thinking about a prolonged low-rate environment and are concerned about inflation
- Not surprisingly, to counter these concerns, they are reducing cash and fixed income allocations while increasing equities
- 44% are also investing in cash flowing operating business
- While 36% are investing in stabilized real estate
- 65% of FO’s in Americas invest in real estate directly while 27% through managers
- FOs invest directly in real estate for greater discretion over deals and potential tax-related benefits
- Goldman says there’s a “paradigm shift” from traditional core real estate assets such as retail and office to those that support demographic tailwinds such as senior housing and population/employment migrations (stabilized multifamily) as well as innovation-driven growth e.g. e-commerce, logistics and health sciences
- Family offices are also competing with private equity funds to lead deals with abilities to raise funds as needed
#10Cs #saneng #skytiancapital #multifamily #realestate
View the full report here:
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