Family offices move to 'risk on' with plans to load up on stocks, private credit

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One of the hottest growth areas for family offices is private credit. robtfrank reports on a new survey from Goldman Sachs.

At a time when many investors are pulling back, family offices are moving into "risk on" mode, with plans to buy more stocks and alternative investments this year, according to a new survey.

They are also keeping plenty of cash to hold as dry powder for bargains as markets decline and valuations come down in commercial real estate and private companies. The family offices surveyed have 12% of their assets in cash, slightly higher than 2021 levels. They have 28% of their holdings in publicly traded stocks, which was down from 31% in 2021 — likely due to falling stock prices.

With returns in the double digits thanks to higher interest rates, along with strong cash flow, Naison-Tarajano said family offices are eager to invest in private credit and better understand the sector.

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