This version of the article first appeared on CNBC’s Inside Wealth Newsletter. This is Robert Frank, Net-Worth Investor and Consumer’s weekly guide. Sign up to receive future editions directly in your inbox. With its Singapore-based family office, Sriharikumar has long supported US investments. The former managing director of Goldman Sachs, who co-founded TPG-Axon Capital, has a truly global view of investment. His family office, Lionrock Capital, has traditionally been around 40% in the US, 40% in India and 20% in the world. But in the last six months, that has changed. Lionrock’s investment in the world (other than the US and India) has grown to over 25% at the expense of the US, and could change further in the future, Kumar said. “The combination of tariffs and government-related spending reductions (such as Doge and research spending) poses a risk of increasing economic uncertainty and intensifying economic growth without corresponding cuts in interest rates,” Kumar said. He emphasized that he is still bullish in the US in the long run, especially when it comes to artificial intelligence and technology. However, he said he is “paused” by adding to the US Lion Rock, given the high valuation of US stocks, a market concentration of Mag 7 stocks and new opportunities overseas. Even before President Donald Trump’s bomb tariff announcement on Wednesday afternoon, many family offices are seeking safety and geographic hedges as family offices rethink US policy uncertainty, volatile equities and investments in economic growth prospects. Some people are putting their money into hard assets like money and real estate. Others grow cash and wait for the dust to settle. After years of supporting “exceptionalism,” experts said the family office is rethinking global allocations, reducing US exposure and exploiting new opportunities abroad. Whether they invest in Europe with the strength of their updated defence spending or betting on China’s advances in AI and robotics, family offices are at the forefront of a rapid shift towards more global diversification. According to a report by the UBS Global Family Office, Family Office invested half of its assets in North America in 2024. Europe was 27% of its assets, followed by the Asia-Pacific region and China. North American family offices were the most diverse, with 82% of their assets invested in North America. But even overseas family offices have spent a lot of money on the US, while Asian family offices and the Middle East have invested 49% of their assets in North America. The major question in the financial industry is whether family rooms are shorter and restricted to travel from the US, or the beginning of a broader structural trend. According to Deloitte Private, 8,000 single family offices around the world have over $3 trillion in managed assets, and are expected to grow to $5 trillion by 2030. Family offices have become important capital sources for startups, private equity, venture capital, real estate, and other U.S. companies. As family offices move capital overseas and start selling from the country, they feel a drop in funds across the financial system. For now, the movement is relatively small. Family offices invest in the long term and are 20 or 100 years of time, so they don’t make any major changes based on headlines or market fluctuations. “We don’t see a wholesale shift from the US,” said Richard Weintrobe, head of the American Family Office group for City Private Bank. “But they are rediscovering opportunities in Europe and Asia. I think it’s probably more tactical in nature. For this to be a continuous strategic change, we need to look at the basics over a longer period of time.” It appears that non-US investors are making the biggest move. Between February 14 and March 14, European investors pulled over $3.079 billion from US stock ETFs, adding nearly $16 billion to European stock ETFs, according to MorningStar data. Kumar said that repatriation of capital from the US by foreign investors could “causing an increase in capital costs in the US market, leading to higher rates and multiples of valuation. It could also lead to increased debt payment costs and deficits, which is a concern for foreign investors as well. William Sinclair, head of the Financial Institutions Group and US Family Office Practice at JP Morgan Private Bank, said that strong returns in 2025 in Europe and other global stock markets underscore the need for family offices to truly diversify in countries. “The rise in policy uncertainty has placed an emphasis on diversification as a defense against market volatility,” he said. “This includes the transition to non-US stocks, core bonds and gold. All of these have helped to provide solid returns and protect our diversified portfolio,” he added, “Overall, we have seen slight changes in the allocation of capital outside the US by single family offices, primarily as a more broadly diversified strategy.”
Silhouette of a private executive jet flying through the calm sea at sunrise after taking off from Holiday Island, copy space. There are no people.
Ceribreeze | istock | Getty Images
This version of the article first appeared on CNBC’s Inside Wealth Newsletter. This is Robert Frank, Net-Worth Investor and Consumer’s weekly guide. Sign up to receive future editions directly in your inbox.
With its Singapore-based family office, Sriharikumar has long supported US investments.
