Key Takeaways
- Sector: Financial Services & Fintech.
- Geography: United States.
Analysis
A new market study by Goldman Sachs Asset Management reveals a pronounced shift among U.S. high-net-worth and ultra-high-net-worth investors toward private markets, driven by generational change and a search for diversification.
Among participants with more than $10 million in investable assets, allocations to alternatives reach 80%, climbing to 91% for those with more than $20 million. The mix extends beyond private real estate into private equity, growth equity, and credit strategies, underscoring a broad-based tilt toward illiquid asset classes as investors seek distinctive risk-adjusted returns.
Cash remains a meaningful share of wealth: about 20% of net worth sits in cash across tiers, while roughly 95% of respondents save monthly, using liquidity buffers to manage taxes and housing costs. This liquidity discipline coexists with a growing appetite for private markets, highlighting a nuanced approach to balance sheet management in volatile markets.
Generational shift is clear: Millennials allocate around 20% of their portfolios to alternatives—almost double the 11% of Gen X and more than three times the 6% of Baby Boomers. Millennials also show high familiarity with alternatives (96%%) and comparatively lower public-equity exposure (27%%) versus Boomers (48%%), suggesting a generational learning curve that could reshape portfolio construction for years to come.
Advisor engagement shows a gap: while 80% of investors report using a financial advisor, only 41% have discussed alternatives in meetings, indicating a broader education and access challenge for the wealth-management ecosystem. The disconnect points to opportunities for advisors to deepen conversations around diversification, liquidity, and structured access to private markets.
Commentary from Kristin Olson, global head of alternatives for wealth at Goldman Sachs Asset Management, emphasizes that private markets are becoming a core element of modern portfolios, offering diversification, potential outperformance, and access to innovative assets. The findings signal a structural shift in how the wealth segment thinks about risk, return, and the role of alternatives in long-term financial plans.