# Family Offices Shift Focus to AI Investments Amid Market Volatility

> Family offices are prioritizing AI investments, favoring rapid returns over traditional sectors. This shift highlights a new generation willing to forgo conventional fund commitments for direct stakes in leading AI companies.

**Source**: techcrunch.com | **Published**: 2026-09-19 | **Type**: article

## Key Facts

- Family offices oversee $5.5T in wealth, projected to reach $9.5T by 2030, indicating growing investment power.
- 42% of family office portfolios now in alternatives, revealing a shift towards riskier, high-return assets.
- Direct investment activity fell 53% in 18 months, highlighting vulnerabilities to market fluctuations.
- Family offices pay "primary-style prices" for secondary-stage risk, indicating a willingness to accept lower returns.
- 65% prioritize AI investments despite market concerns, suggesting confidence in long-term growth potential.

## Summary

Family offices are increasingly prioritizing investments in artificial intelligence, driven by the potential for rapid returns in a market that is perceived as both lucrative and volatile. Djoann Fal, a family office advisor at Atlas Capital, highlights a stark choice facing these wealth managers: invest in traditional sectors like green energy for long-term gains or seize the opportunity to triple investments in AI within months. This shift underscores a broader trend where family offices are moving away from traditional venture capital routes, opting instead for direct investments in private companies, particularly in the AI sector.

As of 2024, family offices manage approximately $5.5 trillion in assets, a figure projected to reach $9.5 trillion by 2030, according to Deloitte. This wealth enables them to pursue riskier assets, with UBS's 2026 Global Family Office Report indicating that alternative investments now constitute 42% of their portfolios. The current environment reflects a significant appetite for high-risk, high-reward opportunities, particularly among a new generation of family offices willing to forgo the safety of blind-pool fund commitments.

The rise in direct investment activity is notable, having peaked in 2021 before a sharp decline due to rising interest rates and disappointing returns. However, recent trends suggest a resurgence, with family offices now focusing on fewer, larger deals, particularly in the secondary market. This market is viewed as less risky, as it often involves investing in companies with established customer bases and revenue streams. Fal notes that family offices are willing to pay high prices for stakes in companies like Anthropic and OpenAI, which are seen as some of the most valuable assets in the AI landscape.

Despite the enthusiasm for AI, there are concerns regarding inflated valuations and the potential for a market correction. A February report from J.P. Morgan Private Bank found that 65% of global family offices plan to prioritize AI investments, even amid geopolitical tensions and economic uncertainty. Maximilian Kunkel from UBS emphasizes that family offices are balancing their desire for growth in AI with a need to diversify their investments across different regions and asset classes to mitigate macroeconomic risks.

The current climate reflects a dichotomy among investors: some are cautious, viewing the AI boom as a potential bubble, while others are fully committed to capitalizing on its growth. Bruce K. Lee from Keebeck Wealth Management points out that the stakes are high; a downturn in AI could have broader implications for the stock market. This sentiment reveals a tension within the investment community, as many acknowledge the risks yet remain drawn to the allure of high returns.

Looking ahead, the trajectory of AI investments by family offices will likely hinge on market conditions and the sustainability of the current growth trends. If the AI sector continues to attract significant capital and delivers on its promises, family offices may solidify their role as key players in this space. However, should the market experience a downturn, the repercussions could extend beyond AI, impacting broader investment strategies and risk appetites. The evolving landscape suggests that family offices will need to navigate these dynamics carefully, balancing their pursuit of innovation with prudent risk management to sustain their wealth in an uncertain market.

## Entities

- **Companies**: Atlas Capital, UBS, PwC, J.P. Morgan Private Bank, Anthropic, OpenAI, Bridge Funding Global
- **Technologies**: AI
- **People**: Djoann Fal, Angelina Hu, Bruce K. Lee, Emily Zheng, Maximilian Kunkel

## Key Concepts

family offices, AI investments, direct investment, secondary market, risk appetite, wealth management, alternative investments, market volatility

## Definitions

- **family office**: A private wealth management advisory firm that serves high-net-worth individuals and families.
- **secondary market**: A market where investors can buy and sell existing shares of a company, rather than purchasing new shares directly from the company.
- **dry powder**: Cash reserves that investors have available to deploy into investments.
- **blind-pool fund commitments**: Investments made into a fund without knowing in advance which companies the fund will invest in.
- **alternative investments**: Investments in asset classes other than stocks, bonds, and cash, such as private equity and venture capital.

## Use Cases

- Investing in AI companies through the secondary market
- Direct investments in private companies
- Allocating capital to alternative investments
- Managing wealth for high-net-worth families
- Diversifying portfolios across regions and asset classes

## Frequently Asked Questions

**Why are family offices interested in AI investments?**

Family offices see AI as a high-potential growth opportunity, especially in a market where traditional investments may not yield significant returns. The potential for quick returns in AI investments is particularly appealing.

**What is the secondary market?**

The secondary market allows investors to buy existing shares of private companies, providing exposure without the risks associated with new investments. This is seen as a safer option for family offices looking to invest in AI.

**How much wealth do family offices manage?**

As of 2024, family offices were overseeing approximately $5.5 trillion in wealth, with projections suggesting this could rise to at least $9.5 trillion by 2030.

**What are the risks associated with AI investments?**

Investing in AI carries risks such as inflated valuations and market volatility. Family offices are aware of these risks but are still eager to invest due to the potential for high returns.

**What trends are emerging in family office investments?**

There is a noticeable shift towards direct investments and a preference for riskier assets, particularly in the AI sector. Family offices are increasingly bypassing traditional venture capital routes to gain direct exposure to promising companies.

## Links

- [Read on Welcome.AI](https://welcome.ai/content/family-offices-shift-focus-to-ai-investments-amid-market-volatility)
- [Original source](https://techcrunch.com/2026/09/18/family-offices-are-clamoring-for-ai-investments/)
- [OpenAI](https://welcome.ai/company/openai): Featured company

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Source: Welcome.AI | https://welcome.ai/content/family-offices-shift-focus-to-ai-investments-amid-market-volatility