Increase investment in sports! The “new favorite” of global family office investments revealed

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Recently, Goldman Sachs released its latest Family Office Investment Insights Report, bringing the asset allocation trends of the "wealthy elite" into focus.

According to sources, this report brings together the real opinions of 245 family office decision-makers worldwide, making it the largest participation in the history of this survey series. The report not only reveals their latest allocation trends in public markets, private equity, credit, real estate, and other areas.

For the first time, the public is able to glimpse how these secret "capital hubs" controlling vast wealth are reshaping their investment portfolios against the backdrop of global geopolitical tensions, interest rate fluctuations, and the constant emergence of new themes.

Even more intriguing, aside from the red-hot tracks like technology, artificial intelligence, and digital assets, a seemingly “non-traditional” sector is rapidly attracting real money from family offices—sports.

This time, sports are no longer just the pastime of the wealthy, but are regarded as a new round of value opportunity.

A Comprehensive Overview of Latest Allocations

Goldman Sachs found that the 245 family office decision-makers featured in the report have portfolios that are basically consistent with 2023, with public equities allocation rising from 28% to 31%, while alternative investments edged down from 44% to 42%. Allocations to private credit, fixed income, private real estate, and infrastructure investments have increased slightly, partially offsetting the decrease in private equity.

Family offices stated they are ready to deploy capital, with over a third planning to reduce cash holdings (currently at 12%) and invest in risk assets. The largest proportion of family offices plan to increase private equity holdings (39%), followed by public equities (38%) and private credit (26%).

Additionally, continued overweighting of technology stocks is one of the highlights of this survey, with 58% of respondents expecting their portfolios to be overweight the technology sector in the next 12 months. 86% of respondents invest in artificial intelligence, mainly through public equities, though many noted concerns about valuations.

Furthermore, 33% of respondents have invested in cryptocurrency (26% in 2023), with the Asia-Pacific region showing the most interest in future investments.

Rising Interest in Sports Investments

Goldman Sachs’ survey found that, besides technology, family offices are becoming increasingly active in digital assets, secondary markets, and sports investments.

Notably: Sports are a growing investment theme—25% of family offices have already invested in sports, and another 25% are interested; 71% of respondents are interested in male professional league teams, while 61% believe that media and content are the main drivers of future value.

Artificial Intelligence: More than half (58%) of respondents expect their portfolios to be increasingly overweight in technology over the next 12 months, 86% of family offices invest in AI, 51% already use AI in investment processes, and are increasingly focusing on indirect beneficiaries.

Digital Assets: One third (33%) of respondents have now invested in cryptocurrency (up from 26% in 2023), with Asia-Pacific leading, and 39% of respondents considering future allocations; globally, 11% of respondents use cryptocurrency for tail risk management.

Secondary Markets: 72% of family offices invest in secondary markets (up from 60% in 2023), catering to demands for more mature portfolios, shorter terms, and greater transparency.

Preference for Private Assets

Regarding allocation changes among different regions’ family offices, Goldman Sachs’ report found: The biggest shifts occurred in the Americas, where their allocation to private equity is highest at 25%, compared to 22% in Europe, Middle East, and Africa, and 15% in Asia-Pacific. However, planned future allocations show this trend may be reversing.

Meanwhile, allocations to private real estate, infrastructure, and private credit have slightly increased, highlighting the demand for current returns. Nearly half (44%) of respondents leverage their operational expertise for direct investment in private real estate, but mainly rely on managers for other types of alternative investments.

Private credit has become a key growth area. The proportion of family offices not invested in private credit dropped from 36% in 2023 to 26%, as investors aim to benefit from higher interest rates and perceived downside protection, as well as other attractive features. While average global family office allocations to hedge funds remain stable, family offices in EMEA and Asia-Pacific show stronger interest in increasing their allocations to this category.

Risk Outlook

Goldman Sachs’ report points out: As in 2023, geopolitical changes remain the most frequently cited investment risk, with 61% of respondents listing it among their top three concerns (75% in Asia-Pacific), and 66% expecting geopolitical risks to rise in the coming year. Geopolitical instability (39%) and economic recession (38%) follow, with global tariffs (35%) close behind. Most respondents now see higher tariffs as the new normal; 77% expect economic protectionism to intensify, and 70% expect tariff rates to remain stable or rise in the next 12 months.

Even so, respondents generally believe the fundamental drivers of global growth and long-term investment themes remain unchanged.

Risk Disclosure and DisclaimerThe market has risks; investments require caution. This article does not constitute personal investment advice and does not take into account individual users’ specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article fit their particular circumstances. Investment is at your own risk. ```