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Family Offices Increase Direct Investment in AI Amidst Market Volatility

Wealthy families managing their own money are increasingly investing directly in AI companies, often bypassing traditional venture capital funds, despite concerns over inflated valuations.

  • Family offices are increasingly making direct investments in AI companies or buying existing shares from private company shareholders.
  • Alternative investments, including private equity and venture capital, now constitute 42% of the average family office portfolio.
  • A February J.P. Morgan Private Bank report indicated that 65% of global family offices plan to prioritise AI investments.

Wealthy families, through their family offices, are demonstrating a growing appetite for direct investments in artificial intelligence (AI) companies. This trend sees them increasingly acquiring existing shares in private companies from current shareholders or engaging in direct deals, rather than investing via traditional venture capital funds.

Djoann Fal, an advisor at Atlas Capital, noted that family offices are prioritising AI deals that offer the potential for significant returns over a shorter timeframe. This shift is occurring despite concerns about potentially inflated valuations and pricing within the AI sector.

According to the UBS 2026 Global Family Office Report, alternative investments, which encompass private equity, venture capital, and private credit, now account for 42% of the average family office portfolio. This report surveyed 307 family offices globally with an average net worth of $2.7 billion. A J.P. Morgan Private Bank report from February found that 65% of global family offices intend to prioritise AI investments.

Maximilian Kunkel, chief investment officer at UBS Global Wealth Management, stated that AI is seen as a powerful long-term growth opportunity. Bruce K. Lee, founder of Keebeck Wealth Management, observed that family offices are willing to take on risk to avoid missing opportunities in the AI market, even as some acknowledge the possibility of a bubble.

Why this matters: The increased direct investment by family offices in AI companies could influence the funding landscape for AI, potentially driving valuations and shaping the growth trajectory of leading firms in the sector.

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