Here’s where the world’s richest 0.001% of people put their money, according to wealth experts

The ultra-rich live in a different world, and their investment strategies are also very different from the average investor’s portfolio.

“While there is no official threshold, centi-millionaires, or individuals with a total wealth of more than $100 million, are a good benchmark for entry into the 0.001% club,” said Kevin Teng, CEO of WRISE Wealth Management Singapore, a wealth management business for ultra-high-net-worth individuals .

Global population There are about 28,420 centimillionaires.They are largely concentrated in New York, the Bay Area, Los Angeles, London and Beijing, according to WRISE.

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

And this population, which “represents extreme wealth,” is selective when it comes to investing, Teng said.

“Today they don’t invest in get-rich-quick, illiquid things. For example, that means they don’t really do public equities,” said Salvatore Buscemi, CEO of Dandrew Partners, a private family investment office.

“They’re not actually even investing in cryptocurrency, believe it or not,” Buscemi told CNBC via Zoom. “They are committed to preserving their heritage and their wealth.”

As a result, centimillionaires’ portfolios often contain “very strong and stable real estate holdings,” Buscemi said. These rich people gravitate toward “trophy assets.” Class A propertyor investment grade assets that were generally constructed within the last 15 years.

Michael Sonnenfeldt, founder and chairman of Tiger 21, a network of ultra-high-net-worth entrepreneurs and investors, told CNBC that real estate investments typically make up 27% of these people’s portfolios.

People with that kind of wealth typically have their money managed by separate family offices that handle everything, including their inheritance, house bills, credit cards, immediate family expenses and more, says Andrew Amoils, an analyst at global wealth management firm New World Wealth.

“These family offices often have philanthropy arms and venture capital arms that invest in high-growth startups,” Amoils said.

The number of family offices worldwide has tripled since 2019, topping 4,500 globally last year, with total assets under management estimated at $6 trillion.

Ultra-high-net-worth individuals are also considering buying stakes in professional sports teams, Dandrew’s Buscemi said.

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

Exclusivity is a major attraction because these wealthy people want to associate with people of similar status, Buscemi explained. According to him, owning a stake in a sports team is a way for these people to legitimize their status.

“In the United States, you get a knighthood when you buy an NFL team,” he said, similar to how American businessman and billionaire Jerry Jones bought the Dallas Cowboys in 1989.

WRISE’s Teng also noted that 0.001% of people are focusing more on fixed income, private credit and alternative investments. He said private lending is gaining momentum as investors look for sources of income outside traditional markets.

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