Nelson Mullins partner Hendrik Jordaan was quoted in a Crain Currency article discussing family offices investment in technology spaces. Family offices are split between defensive positioning due to locked-in tech investments and offensive strategies capitalizing on AI opportunities, with their structural flexibility providing a competitive advantage over institutional investors constrained by rigid time horizons.

According to Hendrick Jordaan, partner in the Family Office Transactions Group at Nelson Mullins, the selloff has become the dominant conversation among clients. Their responses tend to fall into two camps: defensive or offensive.

Some families feel constrained. “They’re locked into private equity and venture funds with long-duration tech exposure,” he said, limiting their ability to quickly redeploy capital. Others, however, are energized by AI’s potential, “excited to invest behind highly disruptive AI-based technologies and business models.” He pointed to a client evaluating a company implementing an AI solution expected to double EBITDA margins and dramatically improve operational efficiency.

One structural advantage, he noted, is that family offices are often insulated from the herd dynamics that can drive venture capital and institutional allocations. “Without rigid time horizons, they can afford to take a longer view — and that flexibility may prove to be a lasting competitive edge.

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