Tiger 21’s Ultrawealthy Investors Beef Up Private Equity Allocation

Tiger 21’s cohort of ultrawealthy investors increased their private equity allocations by three percentage points in the first quarter, up from 19% in the fourth quarter of 2012.

The group’s latest asset allocation report said private equity had risen by 12 points from a low of 9% in the fourth quarter of 2010.

Tiger 21’s more than 200 members across North America maintain investable assets of more than $19 billion. Their asset allocations are tracked quarterly.

Key findings in the first quarter report:

• Public equities declined to 23% from 24% in the fourth quarter
• Real estate fell to 19% from 21% in the previous quarter
• Hedge funds rose to 8% from 7%
• Fixed income (14%), cash (12%), commodities (1%) and currencies (0%) remained unchanged.

“Private equity investments have always been a favorite of our members—who largely come from entrepreneurial backgrounds where they were actively involved in running companies,” Michael Sonnenfeldt, Tiger 21’s founder and chairman, said in a statement.