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A version of this article appeared for the first time in the Wealth Bulletin Inside Wealth of CNBC with Robert Frank, a weekly guide of the high -level high -level investor and consumer. Register to receive future editions, directly to your entrance tray. In his family office based in Singapore, Srihari Kumar has long favored US investments. The former Goldman Sachs managing director, who also co-founded TPG-Axon capital, has a truly global vision of investment. The portfolio of its family office, Lionrock Capital, has traditionally been around 40% in the United States, 40% in India and 20% in the rest of the world. In the last six months, however, that has changed. Lionrock investments in the rest of the world (outside the United States and India) have expanded to more than 25%, largely at the expense of the United States and can change more in the future, Kumar said. “The combination of tariffs and reduction in government related to the government (through duxtures and research expenses, etc.) causes greater economic uncertainty and a greater risk that economic growth empties without a corresponding reduction in interest rates,” Kumar said. He stressed that he is still optimistic in the United States in the long term, especially when it comes to intelligence and artificial technology. But he said that, given the high assessments of the actions of the United States, market concentration in MAG 7 shares and new opportunities abroad, it is “pausing” by adding to the United States Lionrock is not alone. Even before the announcement of the bomb rate of President Donald Trump on Wednesday afternoon, family offices are rethinking their investments in the political uncertainty of the United States, volatile actions and decline prospects for economic growth have promoted many family offices to seek security and geographical hedges. Some are putting money in hard assets, such as gold or real estate. Others are raising effective and waiting for the dust to settle. After years of favoring “exceptionalism”, experts said that family offices are now rethinking their global assignments, reducing their exposure in the United States and seeking to take advantage of new opportunities abroad. Whether to invest in Europe about the strength of the renewed defense expense, or bet on China’s advances in AI and Robotics, family offices are at the forefront of a rapid change towards greater global diversification. According to the Global Family Office of UBS, family offices had half of their assets invested in North America in 2024. Europe took a distant second place, with 27% of assets, followed by Asia-Pacific and China. The family offices of North America were the least diversified, with 82% of their assets invested in North America. However, even family offices abroad put a lot of money in the United States, with family offices in Asia and the Middle East investing 49% of their assets in North America. The big question in the financial industry is whether the family office is moved by the USA. It will be brief and limited, or if it is the beginning of a broader structural trend. The 8,000 single -family offices in the world have more than $ 3 billion in assets under administration, which is expected to grow at $ 5 billion by 2030, according to Deloitte Private. Family offices have become a critical capital source for new companies, private capital, venture capital, real estate and other companies in the US. If family offices begin to move more capital abroad and fade away from the country, the fall in the funds could be felt throughout the financial system. For now, the movements are relatively small. Family offices invest in the long term, with temporary horizons of 20 or even 100 years, so they do not make large changes based on market holders and swings. “We are not seeing a wholesaler of the United States,” said Richard Weintraub, head of groups of family office of the Americas at Citi Private Bank. “But they are a kind of rediscovery opportunities in Europe and Asia. I think it is probably a more tactical nature. So that this is a continuous strategic change, you would have to see that the foundations support it for a longer period.” Non -American investors seem to be making larger movements. Between February 14 and March 14, European investors obtained more than $ 3,079 billion ETFs of US capital and added almost $ 16 billion to ETF of European capital, according to Morningstar data. Kumar said that the repatriation of the US capital. That could also lead to higher costs and debt payment deficit, which are also a concern for foreign investors. William Sinclair, head of the group of financial institutions and the practice of the United States Family Office in JP Morgan Private Bank, said that strong yields in Europe and other global stock markets in 2025 have only highlighted the need for family offices to be really diversified in all countries. “Due to the high political uncertainty, there is a growing emphasis on diversification as a defense against market volatility,” he said. “This includes a change to non -American actions, the fixed income of the nucleus and gold, all of which have delivered solid yields and helped protect diversified portfolios.” He added that, “in general, we have seen a modest change in capital allocation outside the United States for single -family offices, mainly as a strategy for broader diversification.”
Silhouette of a private executive jet flying over a quiet sea at dawn after taking off from a Christmas island, copy space. There are no people.
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A version of this article appeared for the first time in the Wealth Bulletin Inside Wealth of CNBC with Robert Frank, a weekly guide of the high -level high -level investor and consumer. Register To receive future editions, directly to your entrance tray.
In his family office based in Singapore, Srihari Kumar has long favored US investments.
