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Geopolitical Score 55 Neutral

Family Offices Scale Back Deal-Making Amid Iran Conflict Uncertainty

Apr 02, 2026 14:00 UTC
XOM, DEFN, ^VIX
Medium term

Family offices and corporate investors are making fewer but larger investments as global uncertainty from the Iran conflict impacts deal activity. While the number of deals has dropped, the value of megadeals has increased.

  • Family offices reduced direct investments by 25% in March compared to February (adjusted for month length).
  • 25% of March's family office investments were part of mega-rounds exceeding $100 million.
  • A $1.03 billion seed round for Advanced Machine Intelligence was co-led by Jeff Bezos' family office.
  • Global M&A value rose 26% year-over-year to $1.2 trillion in Q1 2026, but deal count fell 17%.
  • Premji Invest led a $450 million Series A for Rhoda AI in March.
  • The second week of March saw the lowest global M&A value in over a year, below $33 billion.

Investment firms representing ultra-wealthy families have reduced their deal-making activity in March as the Iran conflict created market volatility. According to Fintrx data, family offices made 39 direct investments in companies last month, a 25% decline from February when adjusted for month length. Despite the slowdown, a significant portion of these deals involved large-scale investments. A quarter of March's investments were part of mega-rounds exceeding $100 million, highlighting a shift toward fewer but more substantial bets. One notable example was a $1.03 billion seed round for Advanced Machine Intelligence (AMI Labs), co-led by Jeff Bezos' family office. This trend is also evident in corporate investor activity, where the total value of global mergers and acquisitions rose by 26% year-over-year to $1.2 trillion in the first quarter, but the number of deals fell by 17%, according to LSEG data. The second week of March marked the worst week for global M&A in over a year, with deal value dropping below $33 billion. However, some family offices remain active. Indian billionaire Azim Premji's family office, Premji Invest, made at least four direct investments in March, including a $450 million Series A for Rhoda AI, a startup focused on training industrial robots using video data. Kleiner Perkins' John Doerr also participated in this round. The shift toward larger deals reflects a strategic response to global uncertainty, with investors prioritizing high-impact opportunities over volume.

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