Family Offices Embrace Liquid Token Investments and AI in Alternative Assets

Family offices, which are private wealth management advisory firms that serve ultra-high-net-worth individuals, are increasingly diversifying their investment strategies. According to the latest findings from the Family Offices Investors Summit (FOIS) held in Singapore, those managing assets exceeding $100 million are pivoting toward liquid token investments, artificial intelligence (AI), and gaming. This shift reflects a broader trend toward alternative assets, which are becoming more attractive as traditional markets face volatility.

The landscape of family offices is rapidly evolving. Currently, there are approximately 8,030 single-family offices operating globally. Their combined assets under management (AUM) are projected to increase dramatically, soaring by 189% to reach $9.5 trillion by 2030. This surge is particularly pronounced in the Asia-Pacific region, where Singapore’s family office wealth is anticipated to rise by 10% to $5.41 trillion by 2025. Much of this growth can be attributed to significant inflows into alternative investments.

Growth in Digital Technology and Sustainable Investments

Manana Samuseva, the founder of FOIS, highlighted that 37% of family offices are anticipating the widespread adoption of digital technology, with another 32% focusing on sustainable investments. This dual approach demonstrates a commitment to both innovation and responsible investing, aligning with the values of a new generation of investors.

Interestingly, Gen Z investors, often referred to as “kid investors,” are leading the charge in directing capital toward societal progress. This demographic is increasingly interested in emerging asset classes, which now boast an AUM exceeding $30 million, reflective of the current techno-democracy and the virality of value in today’s attention economy.

Investment Strategies for Market Maturity

Samuseva explained that while short-term, profit-driven tech investments have seen a slowdown—especially in light of the AI hype—the markets are beginning to show signs of maturity. This evolution is accompanied by greater accessibility to alternative investments and a cultural shift in how value is perceived. The overarching strategy for family offices is to aim for returns exceeding 10 times the initial investment through these alternative avenues.

Liquid Token Investments and the Role of AI

According to Kavita Gupta, the founder and general partner of Delta Blockchain Fund, the current state of tokenomics presents a unique opportunity for liquid token investments. Despite a downturn in altcoin markets, particularly those with established projects, new ventures entering the token markets are experiencing exceptionally high valuations as set by venture capitalists. This trend indicates a significant shift within the crypto industry, making liquid token investments appear more appealing compared to early-stage investment opportunities.

Trevor Koverko, a renowned business angel with a record of backing over 100 startups, emphasized that data labeling is emerging as the fastest-growing segment in the AI sector. He highlighted the necessity of building a global network where individuals can engage in a “Label to Earn” model, transforming the processes of data labeling and distribution into a profitable venture.

Additionally, Avichal Garg, a partner at Electric Capital, noted that family offices are increasingly aware of the potential for AI, deep tech, and decentralized finance to foster long-term innovation and growth. “Our focus is on identifying and supporting disruptive technologies and exceptional founders who promise substantial returns and transformative impact,” Garg stated. As we approach 2030, the convergence of technology and finance is expected to unveil new opportunities for discerning investors.

The Rising Influence of Gaming

Gaming has emerged as a vital segment within the alternative investment landscape. Casey Grooms, Managing Partner at Rhinocorn Ventures and Soulbound, pointed out that the future of gaming lies in building the creator economy and harnessing user-generated content. He outlined three key trends: community capital, communities united by shared interests and achievements, and the development of an in-stream prediction marketplace.

Grooms emphasized the need to redefine player acquisition and retention strategies, aiming to reach an expansive audience of 3.2 billion gamers worldwide. This approach aims to establish a new profit paradigm for community investors by leveraging the collective power of engaged gamers.

Jonathan Huang from BITKRAFT Ventures added that gaming has traditionally thrived on compelling content and engagement models. However, with the advent of Web3, the industry has taken a transformative leap by fostering digital asset ownership, decentralization, and player-driven economies. “This transformation alters how value is created, shared, and retained in games, unlocking the potential for games to evolve into scalable digital economies,” Huang explained.

Investing in Digital Art and Cultural Significance

As family offices explore new avenues for investment, digital art has emerged as a compelling option. Afrodet Zuri, a curator with over a decade of experience in Contemporary Art from the Institute for Art at Sotheby’s, remarked that investors can tap into new dimensions of digital value. By embracing the potential and cultural significance of digital art, family offices can resonate across global markets and diversify their investment portfolios.

In conclusion, the investment landscape for family offices is undergoing a significant transformation. As they embrace liquid token investments, AI, and gaming, along with a focus on sustainability and cultural relevance, these entities are poised to shape the future of alternative assets. By adapting to market changes and leveraging emerging technologies, family offices can achieve substantial returns while contributing to societal progress.