Family offices are demonstrating cautious capital deployment despite a broader Wall Street rebound in deal-making. According to a CNBC report, family offices made only 54 direct investments in September, a 46% year-over-year decline, suggesting a persistent reluctance to re-enter the market aggressively.

However, even as deal activity slows, high-conviction mega-rounds in Artificial Intelligence (AI) and healthcare/biotech continue to attract significant capital. AI remains a clear favorite, exemplified by the $300 million seed round secured by Periodic Labs, a startup focused on automating scientific research using AI-powered robotics, which drew funding from family offices linked to Jeff Bezos and former Google CEO Eric Schmidt.

In the healthcare sector, primary-care groups like Harbor Health successfully raised $130 million, securing investment from key players, including Michael Dell’s DFO Management. This indicates that innovative models in essential services are still viewed as secure, long-term investments.

The private equity slowdown is also creating opportunistic pathways for family offices. Some are leveraging their flexibility to make quick acquisitions, highlighting a shift where family offices can move decisively on deals previously held by traditional private equity funds.

Furthermore, these investment decisions are increasingly being shaped by multigenerational interests. Involving younger family members in the firm’s strategy is leading to new thematic bets, such as integrating AI technology (e.g., smart mirrors developed by a family member) into acquired retail assets, thereby blending long-term wealth preservation with innovation and diversified interests. Overall, while cautiousness prevails, family offices are strategically targeting secular growth themes in technology and health.

End Notes

Source: https://www.cnbc.com/2025/10/09/family-offices-still-bet-on-ai-and-health-care-even-as-deals-slow-down.html