Investment Trends Among Ultra-Wealthy Family Offices
Recent data from Fintrix reveals that ultra-wealthy private investment firms made 375 direct investments in the first half of 2025, which is a notable drop of 32% compared to the previous year. Despite this decline, family offices are still keen on investing in hard assets essential for artificial intelligence, like data centers, and are even exploring options overseas.
Experts consulted by CNBC indicate that these family offices are prepared to invest but are currently holding back, largely due to uncertainties surrounding tariffs and geopolitical issues. It’s interesting, really—these investment firms have a history of longevity and patience. They often prefer to see how various situations unfold before taking the plunge into new deals.
In the tech and healthcare sectors, investments have stalled significantly in 2024 and 2025, per the insights provided by Fintrix. Jonathan Flack from PwC notes that family offices exercise caution when considering AI investments. He suggests that particularly those newer to tech are taking a more prudent approach by focusing on the foundational infrastructure necessary for AI, such as data centers and other critical assets. “They are investing in what’s needed to support AI and its growth,” Flack observed.
Healthcare investments, however, exhibit some resilience, driven by the demand for healthcare systems alongside a surge in AI-enabled biotech startups. Flack mentioned that medical diagnosis companies have great promise, especially given the anticipated challenges that might arise from upcoming tax cuts affecting rural healthcare.
Vicki Odette, an attorney advising family offices, points out that there’s a shift in how these entities view venture capital investments. With a slowdown in exits, they find themselves with less capital to reinvest. “There’s definitely more scrutiny now,” Odette said, adding that her clients are actively looking for deals with promising near-term profitability, rather than just sitting idly.
Interestingly, as institutional investors seek more liquidity, some opportunistic family offices are looking into secondary funding options. Yet whether transaction levels will bounce back by the year’s end remains uncertain. Flack expressed a hope for better deal production in the latter half of 2025, while Odette emphasized that clarity around tariffs is essential for meaningful investments in U.S. companies.
What’s particularly noteworthy is the shift in focus among family offices towards international opportunities. Odette has observed an increasing trend of transactions being concentrated in Europe and other regions. “Many family offices are forming cross-border syndicates and sharing insights,” she mentioned, reflecting a collective search for new sources of value beyond the U.S. market.
