According to wealth experts, the world’s top 0.001% are investing their money here.

The uber-rich live apart from the world, and their investment strategies look quite different from the average investor’s portfolio.

“While there is no official threshold, centimillionaires, or individuals with a net worth of more than $100 million, is a good standard as entry into the 0.001% club,” said Kevin Teng, CEO of Rice Wealth Management Singapore. , a wealth firm for Ultra. High net worth individuals.

Globally, the population of 28,420 people are centimillionaires.And most are concentrated in New York City, the Bay Area, Los Angeles, London and Beijing, according to Rice’s data.

“These cities boast strong financial infrastructure, vibrant business ecosystems, and lucrative real estate markets, making them attractive destinations for the ultra-wealthy,” Tang told CNBC.

And this demographic, which “reflects extreme wealth,” is selective in terms of investment, Teng said.

“They don’t invest in get-rich-quick things these days, in illiquid things. For example, that means they don’t really do publicly traded equities,” Dandrew Partners’ C. said Salvatore Buscemi, EO, a private family investment office.

“They don’t actually even invest in crypto, believe it or not,” Buscemi told CNBC. “What they’re looking for is to preserve their legacy and their wealth.”

As a result, centmillionaire portfolios often contain “very strong, stable pieces of real estate,” Buscemi said. These wealthy individuals are attracted to “trophy assets”. Class A featuresor investment grade assets that were typically built within the last 15 years.

Michael Sonnenfeld, founder and chairman of Tiger21 — a network of ultra-high-net-worth entrepreneurs and investors — told CNBC that real estate investments typically represent 27% of these individuals’ portfolios.

Andrew Amuels, an analyst at global wealth intelligence firm New World Wealth, said people with such wealth typically manage their money through single family offices, which manage their inheritance, household bills, credit cards. , handle immediate family expenses etc.

“These family offices are often the primary arms for charities and venture capital arms that invest in high-growth startups,” Amuels said.

The number of family offices in the world has tripled since 2019, topping 4,500 worldwide last year with a combined estimated $6 trillion in assets under management.

DeAndrew’s Buscemi said ultra-high-net-worth individuals also look to potentially buy stakes in professional sports teams.

“It’s a very, very insecure group that takes a lot more than just money to get into,” he said.

Buscemi said exclusivity is a big appeal because these wealthy individuals want to mix with people of similar status. “Participating in a sports team is a way for these individuals to legitimize their status,” he said.

“When you buy an NFL team, they knight you in the United States,” he said, as American businessman and billionaire Jerry Jones bought the Dallas Cowboys in 1989.

Rise Tang also noted that the 0.001% focus more on fixed income, private credit and alternative investments. He said private credit is gaining ground as investors seek sources of income outside traditional markets.

“This trend reflects a growing appetite for unconventional assets that offer unique risk-return profiles,” said Teng, adding that alternative investments include venture capital, private equity and real assets.