Ever wonder where the ultra-wealthy park their capital when markets get choppy?
According to AOL, in June, family offices—investment vehicles of the super-rich—ramped up deal-making with 60 direct investments across various sectors, notably biotech and entertainment, though still lagging 40% behind last year’s pace, according to Fintrx data shared with CNBC.
This uptick marks a reversal after three months of declining activity. Deal count improved from May’s 47 transactions. It’s a sign that confidence might be creeping back among the elite.
Yet, let’s not pop the champagne just yet. A 40% year-over-year drop signals broader caution—perhaps a reflection of volatile markets or tighter capital conditions. These investors aren’t charities; they’re hunting for value. Biotech and healthcare led the charge with nine significant deals. Family offices see long-term potential here, especially as drug shortages plague even developed markets like the U.S. It’s a sector where patience can yield outsized returns.
One standout is Antheia, a Menlo Park, California-based biotech firm. Co-founded in 2015 by scientist-turned-entrepreneur Christina Smolke, Antheia bioengineers yeast to produce medical opioids in under two weeks, compared to the traditional two-year process using opium poppies.
Antheia recently raised $56 million in a Series C round, backed by family offices like Athos KG, led by billionaire twins Andreas and Thomas Strüngmann, and S-Cubed Capital, headed by former Sequoia partner Mark Stevens. Even former Google CEO Eric Schmidt’s Hillspire has been on board since a $73 million Series B in 2021.
Late in 2024, Antheia launched thebaine, a critical ingredient in Narcan, the overdose reversal drug. This fundraiser will fuel production expansion from Europe to the U.S. and support new products.
The company is developing over 70 pharmaceutical ingredients for treatments ranging from cancer to seizures. As Smolke noted, “These are complicated problems.” True innovation takes time, not quick fixes.
Smolke also emphasized the alignment between family offices and biotech’s long timelines: “Family offices tend to be patient.” This patience matches the sector’s need for systemic transformation in healthcare. It’s a rare synergy in a world obsessed with quick returns.
She further highlighted the mission: “The core aspect is rebuilding essential medicine supply chains.” Drug shortages—think empty shelves for cold meds or antibiotics—hit close to home for many. This isn’t abstract; it’s personal.
Elsewhere, entertainment saw flashy moves. Yamauchi No. 10 Family Office, tied to Nintendo’s founding family, snapped up a minority stake in indie film studio K2 Pictures for an undisclosed sum. They’re also backing K2’s film production fund—a bold, Hollywood-style play rare in Japan.
Blackstone billionaire David Blitzer joined a $20 million raise for Ballers, a sports-focused members club featuring padel and virtual golf. Tennis legend Andre Agassi and other athletes also pitched in. It’s a reminder that family offices aren’t just about tech or health—they’re diversifying.
For investors watching from the sidelines, this June surge offers lessons. Biotech, with its long horizons, might not suit the average portfolio, but it’s a space where innovation meets necessity, perfect for those with capital to spare. Consider tracking firms like Antheia if you’re eyeing impact alongside returns.
Ultimately, family offices are showing us where smart money flows in uncertain times. They’re betting on sectors the government can’t—or won’t—fix fast enough, from drug supply chains to niche entertainment. That’s free-market ingenuity at work, and it’s worth paying attention to.