Core Insights - Goldman Sachs has over $540 billion in alternative assets, positioning itself as one of the largest managers in this sector [1] - The firm is focusing on helping wealth clients access alternative investments, which have become more suitable for individual investors in recent years [2] - A significant portion of the economy, with over 85% of large companies being private, necessitates investment in private markets to access these opportunities [3][4] Investor Trends - A survey revealed that 96% of younger investors are familiar with alternative investments and seek greater allocation towards them [4] - Among investors with a net worth of $1 to $5 million, 39% are allocated to alternatives, indicating a growing interest in this asset class [7] - Education is crucial, as many investors and advisors lack familiarity with alternatives; only 38% of advisors at a recent event had invested in alternatives before [9][10] Perception of Risk - Over half of surveyed investors (56%) labeled alternatives as high risk, primarily due to a lack of education and familiarity [11][12] - In contrast, those who have invested in alternatives generally perceive them as less risky, with only 39% categorizing them as high risk [12] - Investors with over $10 million have an average of 15% of their portfolios in alternatives, often for diversification purposes [13][14] Education Initiatives - Goldman Sachs is investing heavily in education through initiatives like the Goldman Sachs Investment University to better inform advisors and clients about the unique risks associated with private markets [16] - The firm emphasizes the importance of understanding liquidity issues in alternative investments, advising against labeling them as "semi-liquid" [16][17]