Family Offices Scale Back on Deals, But Not for AI
In 2025, family offices—the investment arms of ultra-rich families—are seeing a significant downturn in their deal-making. October alone has shown a stark 63% decrease in direct investments compared to the same time last year, with only 51 deals recorded, as per data from the private wealth platform Fintrx. However, while the quantity of deals has dipped, there is still a high appetite for substantial investments, particularly in the booming world of artificial intelligence (AI).
The Winklevoss twins, known for their involvement in cryptocurrency, recently participated in a massive $1.4 billion Series E round for Crusoe, elevating the company's valuation to an impressive $10 billion. Eric Schmidt's family office, Hillspire, also made headlines by contributing to a $2 billion Series B round for Reflection, a firm focused on open-source AI models now valued at $8 billion. It seems that while family offices may be pulling back on the number of investments, they are certainly not shying away from chasing larger returns in technology that is garnering interest across the globe.
A Shift Towards Bigger Bets
Interestingly, even before the AI boom, family offices had begun leaning towards larger investment rounds. A PwC report indicates that the percentage of investments under $25 million declined from 70% to 59% over the past decade. Concurrently, deals valued over $100 million have grown from 9% to 15% in the same timeframe. This trend highlights a growing ambition among family office investors who aspire to have a significant impact in the global financial landscape.
The Value of AI Investments
What's exciting about these investments in AI is the increasing deal sizes. In the first half of 2025, family offices matched their number of investments in AI and machine learning from the previous year, but the aggregate value skyrocketed to approximately $123.3 billion. This value indicates how much potential family offices see in AI as a driver of future profitability.
As family offices venture fewer times but with greater amounts of capital per deal, they are signaling their readiness to play a more significant role in revolutionizing industries through technology. For business leaders, tech-savvy professionals, and managers, the message is clear: understand AI and its expansive potential, as this may redefine investment landscapes for years to come.
Add Row
Add
Write A Comment