The investment landscape is shifting—fast. With market dynamics evolving, private market investments are gaining increased attention—particularly among high-net-worth investors seeking greater portfolio diversification.Their investment choices often serve as a bellwether for broader trends, offering valuable insights for anyone looking to build a smarter, more resilient portfolio. To better understand how the wealthiest investors are navigating this shift, we’re sharing exclusive new research from Long Angle.
Long Angle is a private, membership-based network primarily for individuals with $5 to $25 million in net worth. Many are first-generation wealth creators between the ages of 30 and 49. These are founders, early employees, and high earners who have actively built and managed their wealth.
Their 2025 report offers a look at how these very high-net-worth individuals (VHNWIs) allocate their capital. The results are revealing: a shift away from public markets, minimal reliance on bonds, strategic use of real estate, and growing interest in digital assets, especially among younger investors.
Let’s break down the key trends.
The Shift from Public Equities to Private Investments
Despite the S&P 500's strong gains in recent years, public equities make up just 47% of the average VHNW portfolio. Among those with more than $25 million in net worth, that figure drops to 38%. In their place? Private assets, mostly.
As wealth grows, ownership in private equity, venture capital, and direct business investments becomes more common. These investments offer greater control, potentially higher returns, and a level of diversification not available in public markets. For many in the Long Angle network, this might include investing in a friend’s startup, joining a venture fund, or even acquiring small businesses outright. Many in the Long Angle community access private market investment opportunities previously only available to pensions, endowments, sovereign wealth funds, and family office investors.
Takeaway: As net worth rises, so does the preference for private market exposure. VHNW investors are increasingly shifting from passive public equity to active ownership in private assets.
High-Net-Worth Investors Are Debt-Averse
One of the most striking findings from the report: a third of VHNW homeowners carry no mortgage at all. For those who do carry debt, the average loan-to-value ratio is just 30%. Overall, most respondents' total debt is less than 10% of net worth.
That suggests a strong aversion to leverage, especially when it comes to lifestyle purchases. Some use strategic debt for investments—like real estate or private lending—but the majority prefer to maintain financial flexibility and reduce exposure to market volatility.
Takeaway: Wealthy investors tend to limit leverage, prioritizing liquidity and peace of mind over potentially higher returns that might come with debt.
Minimal Bond Allocations — What’s Replacing Fixed Income?
Traditional financial guidance often recommends a 60/40 allocation between equities and fixed income. However, recent data from Long Angle’s 2025 Asset Allocation Report suggests that many very high-net-worth (VHNW) investors are rethinking this model. On average, bonds account for just 5% of member portfolios—even among those with lower risk tolerance.
Instead, these investors are exploring alternative sources of fixed income, such as private credit, structured lending, and income-generating real estate. These approaches may offer different risk-return profiles and liquidity characteristics compared to traditional bonds. Elevated cash positions are also common, serving both as a defensive buffer and a reserve for future opportunities.
While these strategies may not suit every investor, they reflect a broader trend toward portfolio diversification and a departure from conventional fixed income allocations.
Takeaway: VHNW investors are moving away from the traditional 60/40 portfolio, favoring alternative fixed income strategies and cash reserves to meet their income and liquidity needs.
Younger Investors Drive Crypto Adoption
Age is one of the biggest dividers when it comes to crypto ownership, led by Bitcoin, the first decentralized cryptocurrency. Among investors under 35, 52% own some form of cryptocurrency, with an average allocation of 9% of their portfolios. But among older investors, crypto ownership drops off quite dramatically.
The generational gap highlights a key trend: Younger VHNW investors are more comfortable with asymmetric risk and digital-native assets. Many see crypto not just as a speculative play, but as a hedge against inflation and a long-term store of value.
Takeaway: Crypto remains a niche allocation, but it’s gaining traction among younger wealth creators who are willing to take on more volatility for potential upside.
Real Estate as an Income Strategy
More than three-fourths (81%) of respondents own their primary residence, yet only 30% report owning rental or investment properties. For those focused on generating income, real estate plays a major role. Income-oriented investors often allocate up to 40% of their portfolio to real estate.
These investors typically want steady cash flow through multifamily properties, short-term rentals, or commercial real estate partnerships. Meanwhile, growth-focused investors often view real estate as a secondary asset class—something they own for lifestyle or diversification, not primary returns.
Takeaway: Real estate can be a powerful income generator for VHNW investors, but it’s not a one-size-fits-all solution. Its role depends heavily on the investor’s broader goals and cash flow needs.
The Impact of Risk Tolerance on Portfolio Construction
Risk tolerance continues to be one of the strongest determinants of asset allocation. High-risk investors lean into equities and alternatives, including private companies, venture deals, and crypto. In contrast, lower-risk investors still prefer cash, but not necessarily bonds.
Among those with a conservative risk profile, cash makes up as much as 27% of the portfolio, while bonds remain a minor player at just 13%. Even risk-averse VHNW individuals are prioritizing liquidity and capital preservation over yield.
Takeaway: Whether aggressive or conservative, VHNW investors are thinking beyond the traditional stock-bond mix. Portfolio composition is deeply personalized.
Conclusion — What This Means for Your Portfolio
For self-managed investors, there are several clear lessons from how very high-net-worth individuals are investing in 2025:
- Risk tolerance drives strategy. There’s no one-size-fits-all portfolio, even for the very wealthy.
- Diversification is going beyond public markets. VHNW investors are increasingly turning to private equity, venture deals, and direct business ownership.
- Debt is used sparingly and strategically. Eliminating personal leverage is a top priority.
- Fixed income doesn’t mean bonds. Alternatives like private credit and cash are filling that role.
- Age matters in asset allocation. Younger investors are more likely to explore emerging asset classes like crypto.
- Real estate is nuanced. It can be a powerful tool for income, but it’s not always the centerpiece.
Access the full report to explore Long Angle’s detailed findings and see how your portfolio stacks up against today’s VHNW trends.
