At a glance
- The 63 percent figure is up from 56 percent a year earlier.
- Only about half of investors who call themselves familiar with alternatives rate them high or very high risk, versus nearly three-quarters of those who are unfamiliar.
- More than a third of current owners plan to raise their alternatives allocation over the next two years, a larger share than plan to add to equities, fixed income or cash.
A Goldman Sachs Asset Management survey of 1,000 investors with at least $1 million in investable assets finds 63 percent call alternatives high or very high risk, while 93 percent of current owners are happy. The 63 percent figure is up from 56 percent a year earlier.
Only about half of investors who call themselves familiar with alternatives rate them high or very high risk, versus nearly three-quarters of those who are unfamiliar. With roughly half the sample familiar, that mix produces the 63 percent headline.
More than a third of current owners plan to raise their alternatives allocation over the next two years, a larger share than plan to add to equities, fixed income or cash.
Among investors aware of private credit news, 56 percent said the coverage had no impact and 14 percent said their view became more positive.
Unfamiliar investors cite volatility and risk
Roughly half of respondents say they are familiar with alternatives, a share the survey describes as little changed. Among the unfamiliar, the leading concerns are volatility and risk, followed by not understanding how alternatives work.
Ninety-seven percent of current owners say their alternatives have performed in line with or better than expectations. Unfamiliar investors name volatility, risk and comprehension rather than a specific product grievance. Goldman has a platform aimed at this audience: in August, Daily Network covered the firm's consolidation of private-markets access for wealthy clients, with direct stakes and secondary trading in one unit.
A different Goldman survey covered by Daily Network in August showed family offices trimming private equity while equities rose. We described that shift as tax-aware holding rather than a change of conviction. Different populations and questions mean the two surveys do not reconcile line for line, and neither measures flows.
Kristin Olson, Goldman's global head of alternatives for wealth, said: "Understanding the role private markets can play and how they work can help investors create diversified portfolios that support their investment goals."
Reported by PWD Editors from InvestmentNews. Published . Corrections