Family offices have slashed deal volume to the lowest point in a decade, concentrating capital in fewer, larger transactions as they abandon breadth for strategic depth, according to PwC's Global Family Office Deals Study 2025. The research, presented by Belinda Sneddon, managing director of Family Enterprise Advisory Services at PwC, reveals a fundamental recalibration in how ultra-high-net-worth principals allocate private capital. Rather than spreading commitments across dozens of ventures, offices are now directing resources toward opportunities where hands-on engagement and sectoral expertise can materially influence outcomes.
Club deals remain the dominant transaction structure, accounting for nearly 69 percent of all activity. These collaborative investments allow family offices to pool sector knowledge, distribute risk, reduce due diligence expenses, and wield stronger negotiating power in competitive processes. The prevalence of club structures underscores a preference for partnerships that balance control with the operational efficiencies of shared capital.
Traditional fund vehicles are falling out of favor as family offices pivot toward direct investments and bespoke structures tailored to their governance frameworks and long-term objectives. This migration reflects a desire for greater operational oversight and the ability to align capital deployment with family values and strategic ambitions. The decline in fund commitments signals that principals increasingly view active engagement—not passive LP relationships—as the path to superior risk-adjusted returns.
Real estate has overtaken private equity as the leading asset class, now representing 39 percent of allocations in the first half of 2025, up sharply from 26 percent two years earlier. Apartment complexes and land development projects dominate the category, with aggregate deal value surging from $2.1 billion to $7.5 billion over the same period. Family offices are capitalizing on market dislocations and long-term urbanization trends, leveraging their patient capital advantage to navigate complex, multi-year development cycles that institutional investors often avoid.
Private equity allocations have contracted to approximately 19 percent of the portfolio mix, but the shift in strategy is more significant than the headline reduction suggests. Family offices are moving decisively away from highly leveraged buyout structures, instead embracing buy-and-build strategies, strategic partnerships, and extended holding periods designed to unlock operational improvements and compounding returns. The emphasis is on hands-on value creation rather than financial engineering.
Geographically, North America continues to lead in both transaction count and aggregate value, but family offices are diversifying their footprints. Singapore and the UAE have emerged as important new hubs, reflecting a broader global expansion as principals seek exposure to high-growth regions and favorable regulatory environments. This geographic dispersion aligns with the sector's increasing sophistication and cross-border deal flow.
Most family offices tracked in the study were established after 2001, and three-quarters benefit from the direct entrepreneurial involvement of their founders. Only 14 percent were created following liquidity events. Over 30 percent of offices are operated by the founding entrepreneurs themselves, while just 12 percent are run primarily by heirs. This demographic profile suggests a culture rooted in active management and growth orientation rather than passive wealth preservation.
Venture capital and private equity combined now account for half of all deal activity, reflecting a pronounced appetite for innovation-driven sectors. Family offices are targeting artificial intelligence, software-as-a-service, fintech, and healthcare—areas where transformative business models and structural tailwinds are reshaping industry economics. This forward-looking stance is supported by agile decision-making structures and regular collaboration among family members, operating partners, and sector specialists.
High-performing family offices are characterized by adaptability and continuous learning, according to the PwC analysis. Direct investment, club deals, and real estate are expected to remain focal points, while offices stand ready to pivot in response to macroeconomic shifts and regulatory changes. Leveraging networks and proprietary expertise remains central to identifying and executing on emerging opportunities in an environment defined by selectivity and strategic rigor.