Family Offices Scale Back Dealmaking but Ramp Up AI Investments
Family offices slashed direct investments by more than half in October compared to last year, signaling heightened caution among ultra-high-net-worth investors. Fintrx data reveals just 51 deals closed during the month, a sharp pullback that even seasoned private wealth specialists recognize as a market inflection point.
Yet capital continues flowing aggressively into artificial intelligence ventures. The Winklevoss twins participated in Crusoe's $1.4 billion funding round, catapulting the data center builder to a $10 billion valuation. Eric Schmidt's Hillspire backed a $2 billion raise for Reflection, an emerging competitor in America's AI race now worth $8 billion.
This pattern extends beyond Q4 2025. August saw Commonwealth Fusion secure $863 million for its nuclear energy ambitions, demonstrating family offices' continued appetite for transformative tech bets despite broader market hesitancy.
