Super-Rich Shift Investments to Private Equity as Real Estate Loses Top Spot
Ultra-high-net-worth individuals are shifting their investments from real estate to private equity, according to Tiger 21. As the global economy evolves, private equity and venture capital are now leading portfolios, while tech stocks like the Magnificent Seven continue to dominate public equity.
Where the Super-Rich Are Investing: Private Equity Overtakes Real Estate as Top Asset Class
Ultra-high-net-worth individuals (UHNWIs) are shifting their investment strategies, with private equity now surpassing real estate as the top asset class. This trend was revealed in the latest Tiger 21 Asset Allocation Report, which analyzed the investment portfolios of 1,450 global members who collectively hold over $165 billion in assets.
For 15 years, real estate dominated as the largest allocation, reflecting the fact that many of Tiger 21’s members created their wealth in the property sector. However, the report highlights a growing preference for private equity, which now represents the largest portion of portfolios.
Public equity, while still relevant, has seen a decline among UHNWIs, making up just 22% of their investments. Despite this, tech giants like Apple, Microsoft, Amazon, NVIDIA, Meta, Alphabet, and Tesla—dubbed the “Magnificent Seven”—continue to offer strong returns. Notably, 43% of Tiger 21 members are invested in NVIDIA, with 57% believing in the company’s long-term success.
Michael W. Sonnenfeld, founder of Tiger 21, emphasized that investing in these tech giants offers exposure to artificial intelligence (AI) while mitigating risk. “In recent years, investing in the Magnificent Seven has allowed members to benefit from AI’s potential while still being tied to established, world-class tech leaders,” he explained.
Despite real estate’s fall to the second-largest allocation at 26%, it remains a significant part of UHNWI portfolios. Investors are focusing on dynamic areas like last-mile real estate, while interest in office and retail spaces continues to dwindle. Some members, with backgrounds in development, see opportunity in distressed assets, transforming underutilized properties into profitable ventures.
Tiger 21 members are also heavily investing in venture capital, particularly within the private equity space, recognizing its potential for growth. As the global economy faces uncertainty, members are preparing for long-term success by focusing on private markets and staying agile in real estate.
