All articles tagged with #family offices
Family offices have stepped into oil and gas investments as Iran-driven price gains lift crude, compensating for private equity pullback and lighter ESG constraints; leveraging long horizons, they back sizable deals and minerals funds to obtain cash-flowing, inflation-hedging assets uncorrelated to stocks, though high prices can slow dealmaking and raise macro risk if the rally persists.
Dubai, long pitched as a tax-free safe haven and Gulf finance hub for the ultra-wealthy, faces its first major stress test from the Iran war as security risks grow, prompting some elites to reconsider residency and risk, even as the city remains a pivotal center for wealth and deal-making in the region.
Despite AI-bubble fears, ultra-wealthy family offices doubled down on AI startups in February, with AI-related rounds totaling $171B and overall startup funding reaching a record $189B; notable bets included Emerson Collective’s $1B World Labs fundraise and Azim Premji’s family office's $315M Runway round, plus Hillspire backing Goodfire, underscoring long‑term optimism about AI returns.
Billionaire family offices used year-end filings to load up on equities — with Omega Advisors boosting Rocket Companies and Manchester United, Appaloosa expanding Micron, and Duquesne starting Bloom Energy — while Rausing’ Longbow trimmed core tech bets. Crypto exposure included WIT’s Bitcoin ETF and Coinbase moves, and Ray Dalio’s Marino Management shifted heavily into SPDR Gold Trust, underscoring divergent strategies across stocks, crypto, and gold as 2025 closes.
Ultra-rich investment arms kicked off January with buzzy bets, including funding a motorcycle racing team, even as family offices cut direct investments by 32% year over year, according to Fintrx; despite the dip in direct bets, demand for mega-round VC financings remains strong.
Ultra-wealthy families increasingly bring millennial and Gen Z heirs into private investment firms, but pay is often contested—heirs may be underpaid due to loyalty or in some cases overpaid and stuck with golden handcuffs. Experts urge formal compensation structures, clearly defined roles, and written plans or committees to prevent resentment and disputes as family offices expand into more active investing.
Trump’s proposal to bar “large institutional investors” from buying more single-family homes raises questions about its impact on family offices. The exact definition of a “large institutional investor” and how it would be enforced are still unknown, but rules that count properties owned—rather than total assets—could inadvertently affect some wealthy families with sizable single-family rental portfolios. Experts note family offices vary greatly in structure, and while many prefer multifamily or commercial real estate, some hold substantial single-family portfolios, especially in the South; the immediate effect on them remains unclear until further details emerge.
Despite a 63% decline in direct investments by family offices in 2025, they continue to participate in large funding rounds for AI startups, with deal values tripling and a shift towards bigger investments over the past decade, reflecting rising ambitions and pursuit of higher returns.
Family offices are becoming more cautious in their investments due to concerns over dollar depreciation, tariffs, and geopolitical tensions, leading to increased cash holdings and lower return expectations, especially in private equity and venture capital.
Ultra-wealthy families and their investment firms are increasingly investing in sports, including major leagues, social clubs, and emerging sports, viewing these as long-term, inflation-hedging assets with passion-driven and value creation motives, despite a cautious approach towards women’s leagues and minor sports.
Family offices are increasing their investments in stocks and AI-related assets while reducing private equity holdings, driven by market dislocations and geopolitical concerns, with notable regional differences in risk management strategies such as gold and cryptocurrency holdings.
In August, billionaire family offices made significant investments in sectors like drones and nuclear energy, including a notable $863 million funding round for a nuclear fusion startup and backing for a German drone manufacturer by Peter Thiel, amidst a generally slow deal-making month.
Wealthy family offices and investors, including Warren Buffett's Berkshire Hathaway, increased their stakes in UnitedHealth Group amid the company's recent struggles, leading to a significant share price rise. Other notable investments included tech stocks like Apple, Nvidia, and Taiwan Semiconductor, with some major fund shifts observed in 13F filings. The moves highlight contrarian and value investing strategies during a turbulent period for UnitedHealth.
In June, family offices increased their investment activity, making 60 direct investments, particularly in biotech and healthcare firms like Antheia, driven by a desire for impactful and profitable scientific breakthroughs, leveraging their patient capital.
Family offices are increasing their investments in alternative assets like private credit and infrastructure, with a focus on diversification and risk management, amid a private equity slump, according to a BlackRock survey.