Family offices are increasingly prioritizing AI investments due to the potential for rapid, high returns, according to Djoann Fal of Atlas Capital in San Francisco. Fal noted that when choosing between a deal that triples money in three years versus one that does so in three months, family offices overwhelmingly favor the faster AI opportunity. This shift reflects a broader trend where wealthy families are moving away from traditional venture capital funds and instead pursuing direct investments or buying existing shares in private companies to maintain control and avoid long-term fund commitments.

Family offices managed $5.5 trillion in wealth as of 2024, per a Deloitte report, with projections to reach at least $9.5 trillion by 2030. UBS’s 2026 Global Family Office Report found that alternative investments, including private equity and venture capital, now make up 42% of the average family office portfolio, based on a survey of 307 offices with an average net worth of $2.7 billion. While direct investment activity peaked in 2021 at 13% of portfolios and total deal volume hit 17,460 deals worth $1.05 trillion, it later declined due to rising interest rates and poor returns.

By mid-2025, activity had fallen to a decade-low but is now rebounding, with family offices writing larger checks on fewer deals, particularly in the secondary market, which Fal describes as the most 'de-risked' venture capital asset due to existing revenue and traction. Angelina Hu of Bridge Funding Global and Bruce K. Lee of Keebeck Wealth Management echoed that family offices acknowledge the risks but are determined not to miss the AI opportunity.