SKN | Goldman Sachs Says Millennials Are Becoming the ‘Alts Generation’

Key Takeaways

• Goldman Sachs says Millennials are allocating significantly more capital toward alternative investments than older generations, reinforcing a major shift in wealth-management trends.
• Millennial investors now allocate roughly 20% of portfolios to alternative assets, compared with about 11% for Gen X and 6% for Baby Boomers.
• Private markets tied to technology, healthcare, artificial intelligence, and innovation-driven sectors continue attracting strong interest from younger wealthy investors.
  

Goldman Sachs says Millennials are increasingly emerging as the “alts generation,” with younger wealthy investors allocating significantly larger portions of their portfolios toward alternative investments compared with older generations.

According to Goldman Sachs research, Millennials currently allocate around 20% of their portfolios to alternative assets, well above Gen X investors at roughly 11% and Baby Boomers at approximately 6%.

The findings reflect a broader shift in how younger investors approach portfolio construction, risk management, and long-term wealth generation.

Alternative Investments Continue Gaining Popularity

The report from Goldman Sachs highlights growing interest in alternatives across high-net-worth and ultra-high-net-worth investors in the United States.

Alternative investments generally include private equity, private credit, venture capital, real estate, commodities, infrastructure, collectibles, and other non-traditional assets.

Millennials appear particularly attracted to sectors connected to innovation, including technology and healthcare, where many fast-growing companies remain privately held for longer periods before entering public markets.

Goldman Sachs noted that younger investors increasingly view private markets as offering access to industries and growth opportunities not always available through traditional public equities.

Public Market Skepticism Influences Allocation Decisions

One major factor driving the trend is the changing perception of risk within public markets.

The research showed Millennials maintain lower exposure to public equities compared with older generations, allocating roughly 27% of assets to publicly traded stocks versus an average of 43% across all generations surveyed.

This suggests many younger investors view alternatives not only as diversification tools but also as vehicles for enhanced growth potential and differentiated investment exposure.

Unlike Baby Boomers and Gen X investors, Millennials are less focused on diversification alone and more interested in accessing emerging industries, disruptive technologies, and long-term expansion themes.

Technology and Innovation Drive Investment Interest

Goldman Sachs emphasized that many of today’s most closely watched investment themes are developing within private markets.

Growth equity and venture capital continue attracting strong interest as investors seek exposure to rapidly expanding companies operating in areas such as artificial intelligence, healthcare innovation, fintech, and digital infrastructure.

Millennials, often considered the first digitally native generation, appear more comfortable navigating newer investment structures and alternative asset classes than previous generations.

Their familiarity with technology and changing financial ecosystems is helping reshape broader wealth-management trends.

Wealth Industry Adapts to Generational Changes

The growing shift toward alternatives is also influencing how financial institutions structure wealth-management products and investment platforms.

Large banks and asset managers, including Goldman Sachs, continue expanding access to private markets, alternative investment vehicles, and customized portfolio solutions for affluent clients.

As intergenerational wealth transfer accelerates over the coming years, Millennial preferences are expected to play an increasingly important role in shaping investment industry strategies.

The trend also reflects broader changes in investor behavior following major economic events such as the 2008 financial crisis, which influenced how younger generations view traditional financial markets and long-term wealth preservation.

Outlook

Goldman Sachs’ research suggests alternative investments are becoming a core component of Millennial wealth strategies rather than a supplemental allocation.

As private markets continue expanding globally, younger investors are expected to remain a major driver behind demand for alternative assets, particularly in sectors tied to innovation and long-term structural growth.

The increasing institutionalization of private markets may further accelerate this trend as access to alternatives becomes more integrated into mainstream wealth management.

For confidential insights on private markets, alternative investments, and global wealth trends, connect with the SKN team for professional engagement.