Have you ever wondered what the ultra-wealthy do with their money when the world feels like it’s holding its breath? In 2025, the answer seems to be: not much. The private investment firms of the super-rich, known as family offices, have hit the brakes on deal-making, slashing direct investments by a staggering 32% in the first half of the year compared to 2024. It’s not that they’re out of cash—far from it. They’re sitting on piles of capital, but they’re playing the long game, waiting for the fog of economic and political uncertainty to clear. So, what’s going on, and where are these savvy investors putting their money instead?
The Cautious World of Family Office Investing
Family offices, those discreet powerhouses managing the fortunes of the world’s wealthiest families, are known for their patience. Unlike traditional investors chasing quick returns, these firms think in decades, sometimes even generations. But in 2025, their patience has taken on a new flavor: caution. According to recent data, family offices completed just 375 direct investments in companies during the first six months of the year—a sharp drop from the previous year. This slowdown spans nearly every sector, from tech to healthcare, with one notable exception: artificial intelligence.
Family offices are holding back, not because they lack funds, but because they’re waiting for a clearer picture of global trade and politics.
– Wealth management expert
It’s fascinating, isn’t it? These firms aren’t just sitting idly by—they’re strategically biding their time. The question is, what’s making them so hesitant, and where are they finding opportunities in this uncertain climate?
Why the Slowdown? Tariffs and Geopolitical Jitters
The biggest roadblock for family offices in 2025 seems to be the uncertainty surrounding tariffs and geopolitics. With President Donald Trump’s trade policies looming large, many investors are reluctant to commit to new deals until the implications become clearer. Tariffs can reshape markets overnight, affecting everything from supply chains to profit margins. For family offices, who often invest in private companies with long-term growth potential, this kind of unpredictability is a dealbreaker.
I’ve always found it intriguing how the ultra-wealthy navigate these murky waters. They’re not just reacting to headlines; they’re analyzing how global shifts could ripple through their portfolios. For instance, proposed tariffs could hit U.S.-based companies hard, especially those reliant on international trade. This has led many family offices to pause domestic investments and look elsewhere for opportunities.
- Tariff uncertainty: Potential changes in trade policies are making investors wary of U.S.-focused deals.
- Geopolitical risks: Tensions in global markets are prompting a wait-and-see approach.
- Capital preservation: Family offices prioritize long-term stability over short-term gains.
This cautious approach isn’t about fear—it’s about strategic patience. Family offices have the luxury of time, and they’re using it to ensure their next move is a smart one.
AI: The Bright Spot in a Cautious Market
While most sectors saw a decline in investments, one area is bucking the trend: artificial intelligence. Family offices boosted their direct investments in AI-related companies from 55 in 2024 to 71 in the first half of 2025. But don’t be fooled into thinking they’re chasing the latest tech fad. These investors are taking a picks-and-shovels approach, focusing on the infrastructure that powers AI rather than speculative software startups.
Family offices are betting on the nuts and bolts of AI—think data centers and hardware—rather than flashy apps.
– Technology investment consultant
Data centers, in particular, are a hot ticket. As AI applications demand more computing power, the need for robust infrastructure grows. Family offices see these hard assets as a safer bet than unproven AI ventures. It’s a classic move: invest in what’s essential, not what’s trendy. I can’t help but admire this kind of foresight—it’s like buying land during a gold rush instead of chasing elusive nuggets.
| Investment Type | 2024 Deals | 2025 Deals |
| AI Infrastructure | 55 | 71 |
| Technology (General) | 120 | 82 |
| Healthcare | 95 | 65 |
This focus on infrastructure isn’t just about playing it safe. It’s about positioning for the future. As AI continues to reshape industries, those who own the backbone of this revolution could see outsized returns.
Healthcare: A Resilient Runner-Up
While AI steals the spotlight, healthcare remains a surprisingly resilient sector for family office investments. Despite the overall decline, areas like AI-enabled biotech and medical diagnostics are holding strong. Why? The aging population and rising healthcare demands create a steady need for innovation, and family offices are taking notice.
One area that’s particularly intriguing is medical diagnostics startups. With potential cuts to rural healthcare looming due to new tax policies, these companies are poised to fill critical gaps. It’s a reminder that even in uncertain times, opportunities emerge where needs are greatest. Family offices aren’t just throwing money at problems—they’re targeting solutions with staying power.
- AI-driven diagnostics: Tools that leverage AI to improve accuracy and efficiency.
- Rural healthcare solutions: Startups addressing gaps in underserved areas.
- Biotech innovation: Companies developing cutting-edge treatments.
Perhaps what’s most interesting is how family offices balance pragmatism with optimism. They’re not chasing unicorns; they’re backing companies that solve real problems. It’s a mindset we could all learn from, don’t you think?
Looking Abroad: The Rise of Cross-Border Deals
Here’s where things get really interesting. While U.S. investments are stalling, family offices are increasingly looking overseas. Europe, in particular, is becoming a hotspot for deal-making. Why the shift? For one, tariff uncertainty makes domestic investments riskier. For another, global markets offer untapped potential for alpha—those elusive high returns that every investor dreams of.
Family offices are also getting creative, forming cross-border syndicates to pool resources and expertise. It’s like a high-stakes book club, where the ultra-wealthy swap ideas and share risks to uncover hidden gems. I’ve always thought there’s something inspiring about this kind of collaboration—it’s not just about money, but about building smarter, more connected investment strategies.
We’re seeing family offices team up across borders to find opportunities that the U.S. market can’t offer right now.
– Investment advisor
This global outlook isn’t just a trend—it’s a strategic pivot. By diversifying their portfolios across borders, family offices are hedging against domestic risks while tapping into new growth markets.
Secondary Funds: A New Favorite
Another area where family offices are dipping their toes is secondary funds. These funds, which buy stakes in existing private companies or funds, are surging in popularity as institutional investors seek liquidity. For family offices, they offer a way to stay active in the market without committing to long-term, high-risk ventures.
It’s a clever move, if you ask me. Secondary funds provide a middle ground—less exposure than direct investments but more action than sitting on cash. They also allow family offices to diversify without overextending themselves. In a year like 2025, where clarity is in short supply, this kind of flexibility is gold.
- Liquidity appeal: Secondary funds offer faster access to returns.
- Lower risk: Buying existing stakes reduces exposure to unproven ventures.
- Diversification: A way to spread capital across multiple opportunities.
Will this trend continue? It’s hard to say, but it’s clear family offices are finding creative ways to stay in the game without betting the farm.
What’s Next for Family Offices?
Looking ahead, the big question is whether deal-making will rebound before 2025 ends. Some experts predict a slight uptick in the second half of the year, driven by the sheer volume of undeployed capital sitting in family office coffers. Others argue that without clarity on tariffs and geopolitics, the slowdown could persist.
Personally, I think the truth lies in the middle. Family offices are too savvy to sit on their hands forever, but they’re also too prudent to rush into uncertain markets. My bet? They’ll start dipping into deals cautiously, focusing on sectors like AI infrastructure and healthcare, while keeping a keen eye on global opportunities.
The ultra-wealthy don’t move until the path is clear, but when they do, they move decisively.
– Private wealth strategist
It’s a waiting game, but one thing’s for sure: family offices aren’t going anywhere. Their ability to adapt, whether through AI investments, cross-border deals, or secondary funds, shows why they remain a force in the investment world.
So, what can we learn from the ultra-wealthy? Maybe it’s that patience isn’t just a virtue—it’s a strategy. In a world of uncertainty, sometimes the smartest move is to wait, watch, and strike when the time is right. Where do you think family offices will turn next? And more importantly, how can everyday investors apply this kind of strategic thinking to their own portfolios?
