Family offices have been increasing their exposure to private credit, with a quarter expecting to continue upping their allocations this year, new research has found.
According to a report by Goldman Sachs, there have been “moderate increases” in private credit allocations this year, with over a quarter – 26 per cent – of 245 respondents saying they intend to increase their exposure to private credit in the next 12 months.
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The average allocation to private credit reported by family offices was 4 per cent this year, up from 3 per cent in 2023, which Goldman Sachs said reflected “appetite for yield and bespoke financing solutions”.
“Allocations to private real estate & infrastructure and private credit edged higher, underscoring demand for current yield,” the report said. “Private credit has emerged as a key growth area. The proportion of family offices without exposure to private credit fell to 26 per cent, from 36 per cent in 2023, as investors seek to benefit from elevated rates and perceived downside protection among other attractive factors.”
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“Family offices are signaling confidence in long-term growth while remaining disciplined in their approach,” added Sara Naison-Tarajano, global head of apex and private wealth management capital markets at Goldman Sachs.
“They’re prepared to stay the course, but also to lean into areas like private credit and public equities where they see compelling opportunities to generate returns.”
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