A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register to receive future editions, directly in your reception box. In his Singapore -based family office, Srihari Kumar has long favored American investments. The former managing director of Goldman Sachs, who also co-founded TPG-Axon Capital, has a truly global vision of investment. The portfolio of his 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 past six months, however, it has changed. Lionrock’s investments in the rest of the world (outside the United States and India) extended to more than 25%, largely to the detriment of the United States and this could change more in the future, Kumar said. “The combination of prices and the reduction of expenses related to the government (through costs and research expenditure, etc.) causes greater economic uncertainty and a higher risk than economic growth waves without a corresponding reduction in interest rates,” said Kumar. He stressed that he was still optimistic in the United States in the long term, especially with regard to artificial intelligence and technology. But he said that, given the high assessments of American actions, market concentration in Mag 7 actions and new opportunities abroad, he “pauses” to add to US Lionrock is not alone. On Wednesday afternoon, even before the announcement of President Donald Trump’s bomb rate, family offices are rethinking their investments in the uncertainty of American policy, volatile actions and the drop in prospects for economic growth have pushed many family offices to seek security and geographic hedges. Some put money in hard active ingredients, such as gold or real estate. Others collect money and wait for the dust to settle. After years to promote us “exceptionalism”, experts have said that family offices are now rethinking their world allowances, reducing their exhibition in the United States and seeking to take advantage of new opportunities abroad. Whether it is to invest in Europe on the strength to renew defense spending or to bet on the progress of the AI and the robotics of China, families are at the forefront of a rapid passage to a more global diversification. According to the UBS Global Family Office report, family offices have invested half of their assets in North America in 2024. Europe ranked remotely, with 27% of assets, followed by Asia-Pacific and China. North American family offices were the least diverse, 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 which invest 49% of their assets in North America. The big question of the financial industry is whether the family office leaves the United States will be short and limited, or if it is the beginning of a broader structural trend. According to Deloitte Private, the 8,000 world unifamilial offices have more than 3 billions of dollars of assets under management, which should reach 5 billions of dollars by 2030. Family offices have become a critical source of capital for startups, investment capital, venture capital, real estate and other companies in the United States if families are starting to move more capital abroad and Setting the country, the drop in financing could be felt through the financial system. For the moment, the movements are relatively small. Family offices invest in the long term, with temporal horizons of 20 or even 100 years, they therefore do not make big changes depending on the titles and oscillations of the market. “We do not see a wholesale difference in the United States,” said Richard Weintraub, head of the family group of the Citi Private Bank Americas. “But these are sort of opportunities to rediscover in Europe and Asia. I think it is probably of a more tactical nature. For this to be a continuous strategic change, you will have to see the fundamentals support it over a longer period.” Non -American investors seem to make the greatest movements. Between February 14 and March 14, European investors drew more than $ 3.079 billion from FNB in American stocks and added nearly $ 16 billion to European ETFs, according to Morningstar data. Kumar said that the repatriation of the capital of the United States by foreign investors “could lead to an increase in the cost of capital for American markets, with higher rates and higher evaluation multiple.” This could also lead to debt payment fees and higher deficits, which are also a concern for foreign investors. William Sinclair, head of the Group of Financial Institutions and the American Family Office practice at JP Morgan Private Bank, said solid returns in Europe and other world stock markets in 2025 only stressed that the need for family offices are really diverse in all countries. “Due to the high uncertainty of policies, emphasis is placed on diversification as a defense against market volatility,” he said. “This includes a transition to non -American actions, a fixed income and the basic gold, which have all provided solid yields and helped to protect diversified portfolios.” He added that: “Overall, we saw a modest change in capital allowance outside the United States by unifamilial offices, mainly as a strategy for broader diversification.”
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A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register To receive future editions, directly in your reception box.
In his Singapore -based family office, Srihari Kumar has long favored American investments.