“Let me tell you about the very rich,” F. Scott Fitzgerald wrote 99 years ago. “They are different from you and me.” However, despite having more money, it turns out that they are just as concerned as the rest of us about protecting their nest eggs from stock market tantrums.
According to FINTRX, an analytics company that aggregates and studies data about family offices of ultra-high-net-worth (UHNW) investors, direct investment deals fell by 32% in the first six months of 2025.
These findings aren’t surprising to advisors who work with wealthy investors. John Zimmerman, president of Ascent Private Capital Management of U.S. Bank, says he sees two approaches from his UHNW clients.
First, those who are involved in businesses or industries heavily impacted by tariffs are looking at strategies to mitigate their exposure. Second, those who don’t need to be in markets right now are sidelining their cash.
“There’s no urgency for them to deploy capital,” Zimmerman says. “They all basically said, ‘We’re going to wait and see what happens.'”
Interest and wariness over AI
Uber-wealthy investors are even giving popular investing trends like technology and cyclical plays like health care the cold shoulder, CNBC reported. It found that the only type of businesses in which direct investments rose within the first half of the year were those associated with artificial intelligence.
Advisors who work with this population can confirm that. “Companies involved with AI continue to be of interest,” Zimmerman says. “We are in a tech-driven economy.”
Although this drives ongoing enthusiasm, Zimmerman advises caution. “Valuations are very hard to identify because the multiples are so high,” he says, buoyed by optimism and hopes that may or may not come to fruition.
“If you’re a fundamentals investor, valuations become very difficult,” he says.
Jonathan Flack, U.S. and global family office practice lead for consulting firm PwC, said one way UHNW investors are approaching this challenge is by focusing their investments on what might be described as the scaffolding being used to build out and grow the AI industry.
“They are actually making investments in the data centers and the hard assets that are going to be needed to support AI and the growth of AI,” Flack said in a CNBC interview.
Diversification provides cash flow and risk mitigation
Nancy McColgan, managing director of Verdence Family, a division of Verdence Capital Advisors, says that her UHNW clients today are looking to hedge risk. “We don’t have a lot of family offices that want to invest in single direct investments. It lacks diversification,” she says, adding that investment pools that incorporate multiple assets are more appealing.
Income-producing assets also are in high demand among UHNW investors. “In some cases, they may be looking for assets that throw off cash flow as opposed to growth only,” McColgan says. She notes that while the market’s appreciation has been robust, much of that momentum is driven by tech companies that have great future potential but don’t provide a steady income stream.
“Obviously, the stock market has produced a lot of growth, but it’s been highly concentrated. They also want opportunities to make sure that their portfolios are producing cash,” she says. Her clients are interested in sectors like energy and utilities, as well as other infrastructure assets like toll roads and bridges.
Real estate is another asset class wealthy investors are seeking out for its potential to generate cash flow.
“Almost all of our ultra-high-net-worth clients are interested in real estate in one way or another,” Zimmerman says. When there’s a lot of economic uncertainty, “tangible assets tend to be where people gravitate to,” he says. “Real estate tends to be a safe haven in these sorts of times.”
Real estate can also provide liquidity and free cash flow, especially for building types in high demand, McColgan adds. “Certainly, in multifamily housing in most areas, it’s pretty high occupancy,” she says.
You don’t need to be rich to invest like them
While wealth unlocks investing opportunities for the rich that most people with just a 401(k) or a brokerage account might not have access to, you don’t need to have a family office or a high net worth to take a page from the playbook of UHNW investors.
For the most part, this means having a plan, sticking to it and evaluating potential investments on their fundamentals rather than hype — positive or negative.
“I’m just seeing a lot more scrutiny,” Vicki Odette, a partner at the law firm of Haynes Boone, told CNBC.
“Every investor should make sure that they don’t overreact to market activity,” McColgan says. “Approach any type of reactive market with caution but don’t approach it with a ‘must do something immediately’ mindset.”
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