Family Offices Shift to AI and Private Credit: Goldman Sachs Report

Family offices, which are private organizations that manage the wealth of very rich families, are changing the way they invest money. According to the Goldman Sachs Family Office Report 2025, these groups are ready to take more risks in the coming year. The main focus of their new investments will be artificial intelligence (AI) and private credit.

Goldman Sachs surveyed 245 family offices worldwide for this report. About 47% of them are based in the Americas, 26% in Europe, the Middle East, and Africa (EMEA), and 27% in Asia-Pacific (APAC). Many of these offices are very wealthy — 40% have assets worth between $1 billion and $5 billion, and 13% manage over $10 billion.

Cash to Risky Assets

At the moment, family offices keep around 12% of their money in cash or cash-like assets. But this is about to change. 34% of respondents said they will reduce cash holdings in the next 12 months. Instead, they want to put more money into what are called “risk assets,” such as stocks, private credit, and technology investments.

Around 38% of family offices plan to increase investments in public equities (stock markets) in the coming year. This shows a strong shift from safe savings to more active, growth-focused investing.

AI Takes the Lead

One of the most important findings in the report is the rising focus on artificial intelligence. Around 86% of family offices already have some form of AI investment.

52% invest through public stocks in AI-related companies.

38% put money directly into AI-powered businesses.

Goldman Sachs believes the actual numbers may be even higher since many companies are adding AI tools without labeling themselves as “AI firms.”

Family offices are also looking at “secondary beneficiaries” of AI — industries that will grow because of AI adoption. For example, industrials, energy, and materials are seen as sectors that will benefit indirectly from the rise of AI.

Private Credit on the Rise

Another key theme is the growth of private credit. This means lending money directly to businesses instead of going through banks or public bond markets.

In 2025, family offices allocated 4% of their assets to private credit, compared with 3% in 2023.

They prefer private credit because it often gives higher returns and better protection compared to traditional loans.

Private credit lenders can also work closely with borrowers to restructure loans if problems arise — something harder to do in public markets.

This shows family offices want more control and flexibility in their lending strategies.

Regional Preferences

Family offices prefer investing in markets close to home:

In Europe, Middle East, and Africa (EMEA), 89% plan to invest in the euro area.

In Asia-Pacific (APAC), 80% will invest in China, while 24% look to India.

This “home bias” shows that even the world’s richest investors feel safer focusing on familiar regions.

Key Risks Ahead

The report also highlights several risks that family offices are worried about:

Inflation: The biggest concern in the Americas (34%), compared with 25% in EMEA and 17% in APAC. More than half of all respondents believe inflation will rise in the next 12 months.

Recession in the US: 50% think the chance of a US recession is increasing.

Geopolitical conflict: In APAC, 75% of family offices list global tensions as a top risk.

Tariffs and trade barriers: Around 77% of respondents expect protectionism to increase worldwide, while 70% believe tariffs will stay the same or go higher.

Growing Interest in Cryptocurrency

While most family offices still avoid digital currencies, interest is rising. In 2021, only 16% invested in crypto, but by 2025 that number has grown to 33%. This shows that even cautious investors are starting to explore blockchain-based assets.

A Changing Investment World

The Goldman Sachs report makes it clear that family offices are no longer content with sitting on large piles of cash. They are moving toward growth-driven areas like AI and private credit while keeping an eye on global risks.

This trend shows two things:

Technology, especially AI, is now seen as a must-have investment.

Private credit is becoming more attractive than traditional loans or bonds.

At the same time, risks such as inflation, tariffs, and global conflicts could create challenges in the months ahead. But overall, family offices appear ready to take more chances to grow their wealth.