Private equity, public equity have raced ahead of real estate, says Tiger 21′s Michael Sonnenfeldt

August 19, 2026 - 23:46

Michael Sonnenfeldt, the founder of the investment network Tiger 21, says the wealthiest investors have dramatically changed where they park their money. Speaking on a recent financial program, Sonnenfeldt noted that both private equity and public equity have raced far ahead of real estate in terms of new capital flows from his members. That marks a clear shift from previous years, when property was often seen as the safest and most reliable store of value for the ultra-rich.

According to Sonnenfeldt, the "one percent of the one percent" are now favoring businesses they can actively shape or that offer quick liquidity. Private equity deals give them direct control and the chance for outsized returns, while public stocks provide flexibility in a market that has shown strong momentum. Real estate, by contrast, has become less attractive due to higher interest rates, stubborn property taxes, and uncertainty around office and retail spaces. Even high-end residential markets have cooled in some regions, making it harder to justify tying up large sums in illiquid assets.

Tiger 21, which stands for The Investment Group for Enhanced Results in the 21st Century, tracks the portfolio choices of its members, who collectively manage tens of billions of dollars. Sonnenfeldt emphasized that this is not a short-term fad. He sees a structural change, where wealthy individuals treat real estate more like a niche play rather than a core holding. They still own homes and some commercial properties, but the growth capital is going elsewhere.

He also pointed out that many of his members are increasing cash reserves, waiting for the right entry points in equity markets. The overall mood, he said, is cautious optimism, but with a clear preference for assets that can be sold quickly if conditions turn. For now, the race is on between private and public equity, and real estate is watching from the sidelines.