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Family office investments fall sharply in 2025

Direct investments by family offices dropped 32% in the first half of 2025, signaling increased investor caution.

July 24, 2025 at 11:30 AM

Family office deals have fallen in 2025 as investors wait for clarity

Family offices are pulling back on new deals amid ongoing economic uncertainty.

Family office investments decline as uncertainty lingers

Family offices, which manage the wealth of ultra-high-net-worth individuals, are experiencing a notable downturn in direct investments. In the first half of 2025, these investment firms executed 375 deals, reflecting a 32% decline compared to the previous year. This decrease spans various sectors, with technology and healthcare seeing significant drops, whereas artificial intelligence ventures witnessed some growth. However, investors are increasingly cautious, focusing on infrastructure and essential assets rather than high-risk technology, and many are now exploring opportunities beyond the United States, particularly in Europe.

Key Takeaways

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Family offices made 375 direct investments in the first half of 2025.

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This is a 32% decrease from the previous year.

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Investments have declined across most sectors, except for artificial intelligence.

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Caution is heightened as family offices await economic clarity.

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Opportunistic investments in secondary funds are gaining traction.

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There is a noticeable shift towards overseas opportunities in Europe.

"They're really looking for deals where they can actually see, in the near term, much more of a profitable path."

This quote highlights the increased scrutiny family offices are applying to investment opportunities.

"Most of the deals that we're seeing are really focused in Europe and abroad."

This emphasizes the shift of family offices towards international investments.

The current climate for family office investments reveals a shift towards more conservative strategies. The uncertainty surrounding tariffs and economic policies is making these investors more selective. With pressure on healthcare systems and an increased interest in AI infrastructure, family offices may be adapting to find stability in the changing market. The trend of looking overseas indicates a broader search for profitable opportunities, reflecting both caution and strategic expansion in new regions.

Highlights

Family offices are looking for clear signs before they invest again.
The shift towards overseas deals indicates a new investment strategy.
Cautious investing is the new norm for family offices.
Infrastructure assets are taking center stage in family investments.

Investment decline raises concerns

The significant drop in family office investments reflects broader economic uncertainty. Investors are cautious, and a lack of clarity on tariffs may further restrain deal-making, creating potential risks for the investment landscape.

As the economic landscape evolves, family offices may redefine their investment strategies to align with new realities.

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family office investments ai market trends cross-border economy investments wealth management

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