Longer-Term Outlook Helps Ultra-Rich Ride Out Volatility: Goldman

Geopolitical conflict most cited investment risk by family offices, survey finds

- Angela Tan

Family offices are emerging as standouts in today's turbulent markets, with their long-term capital giving them the resilience to ride out volatility and the firepower to seize opportunities ahead of the pack.

Without external investors and strict mandates, family offices which manage the wealth of super-rich families are able to stay invested through market downturns, Goldman Sachs said in its third Family Office Investment Insights report released on Sept 10.

The report, which included responses from 245 family office decision-makers worldwide between May 20 and June 18, noted that their advantage lies in being able to pursue investments that may take a decade or more to deliver returns.

This was evident from their investments in long-term projects such as healthcare and technology innovations, energy transition and long-duration infrastructure.

"Perhaps the most striking impression is how consistent the behaviours of family offices are over time, despite the noise around geopolitics, trade policy, and rapidly evolving technology," it said.

Among the respondents, 47 per cent are from the Americas, 26 per cent Europe, the Middle East and Africa (EMEA), and 27 per cent the Asia-Pacific. More than two-thirds of the respondents have a net worth of at least US$1 billion (S$1.3 billion).

Since Goldman Sachs last polled family office investors for its report in 2023, the global landscape has changed, with escalating international tensions, policy shifts and the looming threat of trade wars.