That’s where family office dealmakers placed their bets in December

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide for the high-net-worth investor and consumer. subscription To receive future issues, directly to your inbox.

Wall Street advisors stayed busy in December – from Warner Bros. Discovery Bidding war for Trump media $6 billion merger with nuclear fusion company. However, private investment firms belonging to ultra-rich families were in no rush to conclude deals before the end of the year.

In December, family offices made 35 direct investments in companies, down about 62% year-on-year, according to data provided exclusively to CNBC by private wealth platform Fintrx. The results capped a weak year for family office dealmaking, as companies pulled back on their direct bets in light of tariff uncertainty and geopolitical strife.

However, Millennial and Generation X heirs continue to make their mark through their family offices.

Motier Ventures, one of the most active family offices according to Fintrx data, was founded by Guillaume Houzy, 44, the fifth-generation heir to the French department store chain Galeries Lafayette. The French company, known for its technology-rich portfolio, joined a €7.2 million ($8.5 million) seed funding round for blood testing startup Lucis in December.

Next generation heirs often invest outside the industries that created their family’s wealth. Last month, billionaire eyewear heir Leonardo Maria Del Vecchio acquired a 30% stake in Italian right-wing news outlet Il Giornale through the newly created media division of his family office, LMDV Capital. Del Vecchio, whose late father founded Luxottica, said in an interview with the Italian press that he does not expect big returns and invests out of a sense of civic responsibility.

“My desire is to build an Italian information center, not bound by the colors of politics. Neither left nor right, for the future of our children and the future of Italy,” the 30-year-old told L’Economia newspaper, according to a CNBC translation. “Publishing needs new strength, as well as to reconnect with young people who are looking for information but in the wrong places. I would like these young people to go back to flipping through the pages of printed newspapers and magazines and getting their hands dirty with ink.”

High net worth families have traditionally used philanthropy as a way to bring the next generation into the fold, and this remains a popular route. However, families are increasingly using direct investing — often with a penchant for sustainability — to engage heirs, according to Scott Saslow, a family office advisor and director.

“These families have found interesting ways to engage the next generation by saying, ‘Hey, you know, it’s not about having a nice house or driving a nice car,'” he added. “It’s about being able to do something very impactful in the world with this capital from this privileged place.”

According to UBS’s latest family office survey, just under a third of family offices said they expect next-generation family members to be involved in direct investments, and 39% said they expect the next generation to help manage investments.

—CNBC’s Gaëlle LeGrand contributed to this report.