Family offices prefer to bet on AI boom with stocks versus startups and VC funds

CNBC
CNBC
3M ago
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A Goldman Sachs survey reveals family offices prefer investing in AI through public equities rather than startups, citing better valuations and broader exposure.
Family offices prefer to bet on AI boom with stocks versus startups and VC funds
A What happened
A Goldman Sachs survey indicates that family offices, which manage wealth for ultra-high-net-worth individuals, are leaning towards investing in artificial intelligence through public equities rather than directly funding AI startups. The survey, which included 245 family offices, revealed that 52% have exposure to AI via public stocks or ETFs, while only 25% reported investing directly in startups. Family offices are more inclined to support companies that utilize AI for productivity and efficiency, as well as secondary beneficiaries like energy providers. The preference for public markets is attributed to more favorable valuations compared to private markets, with many family offices expressing confidence in the stability of public investments. Despite their traditional reputation for being less tech-savvy, family offices are rapidly adapting to the AI landscape, recognizing its integration into everyday life.

Key insights

  • 1

    Public Market Preference: Family offices favor public equities for AI investments due to better valuations.

  • 2

    AI Integration: AI's ubiquity in daily life has increased family offices' interest in the sector.

  • 3

    Investment Trends: Majority of family offices are investing in AI-driven companies rather than startups.

Takeaways

Family offices are strategically navigating the AI investment landscape, favoring public markets for their perceived stability and growth potential.

Topics

Business & Markets Markets Startups/VC Innovation

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