As global investors have continued pouring capital into the nascent boom in artificial intelligence, concerns about the concentration of the U.S. equity market in the companies leading this trend—the so-called Magnificent Seven—have emerged across various sectors. On the private markets side, the bet on this technology is also prevalent, especially in segments such as venture capital. However, Hamilton Lane’s view is that these asset classes are more diversified than equities.
In the latest edition of its Market Overview, the private markets specialist emphasized that these seven stocks have been driving the performance of public equity portfolios for at least six years. Looking ahead, they expect this to continue for at least another two or three years.
As is often the case with major technological shifts, venture capital has been leading investments. “It is fair to say that the scale of the move into AI has been dramatic. More than 50% of the value of venture deals globally is now directed toward AI-focused businesses,” the report noted.
However, despite the strong allocation, these asset classes do not carry the same level of concentration risk as public markets, according to Hamilton Lane. The issue lies in the innovation that has been driving the AI stock market rally: large language models (LLMs).
AI beyond LLMs
“A significant part of the narrative for public market investors and the U.S. economy is the development of large language models to drive AI growth and adoption,” the firm stated in its report.
In this context, two scenarios are emerging on the horizon. Some market participants are betting on the realization of a new industrial revolution. Others do not see a scalable path for LLMs, with a ceiling on their development. “None of us knows the answer to this, but we all need to understand the questions in order to grasp what might come out of the AI box,” they noted.
This brings a key issue to the table: investing in AI—but how?
Currently, Hamilton Lane emphasized in its report, public markets are heavily anchored in LLMs. By contrast, private markets—including the VC ecosystem—cover a broader range of the AI spectrum and have more limited exposure to the scaling of these models. For example, they do not invest in data centers or the chips that are at the core of this technology.
“The venture world invests in the applications of LLMs. They invest in ‘things’ that make end LLM products work better, integrate better, and become easier to use,” the alternatives specialist noted.
According to the report, regardless of valuation concerns, the private market offers more diversified access to this technology than public markets.
For the firm, there is a 60% probability that we are not in an AI-related financial bubble. This means it is their base case, but the recommendation is clear: portfolios must be prepared for each scenario. This includes considering that public and private assets could behave differently if the promise of large language models does not materialize.
“Would anyone be surprised if, going forward, LLMs stagnate, but the applications using current LLMs thrive? That might not be a good environment for Magnificent Seven stock prices, but a group of venture-backed private companies would soar,” they explained.
A variety of applications
Compared with other tech investment waves, such as SaaS companies and the dot-com era, this AI-driven valuation boom is associated with a more favorable earnings curve for capital. “There is always criticism that much venture investment is based on promises rather than profits. We are not saying the profits are here yet, but the path to real revenues (which eventually leads to earnings) is happening faster than what we have seen in other technology-driven cycles,” they added.
In that vein, Hamilton Lane’s analysis highlights how widespread AI use has become across sectors. Surveying 150 managers across strategies and geographies, they observed an increase in the use of this technology within portfolio companies in the recent past.
In 2024, 44% of surveyed GPs said that between 80% and 100% of their portfolios were actively using AI. The following year, that figure had risen to 61%. Conversely, the percentage of GPs investing in companies with no active use of AI fell from 3% to zero over the same period.
“In one year there has been a significant increase in companies actively using AI. If revenue growth is key for AI to drive expansion, this number is encouraging, although it does not indicate what kind of use is being made of it or at what cost,” the U.S. firm noted in its report.
On the other hand, while they note the share of companies making little use of this technology—3% of GPs reporting that between 0% and 20% of their companies actively use it, and 9% reporting between 20% and 40% usage—this can be explained by the nature of certain sectors.
A plumbing company, for example, will have limited applications for artificial intelligence beyond accounting and logistics. “That lack of direct exposure to AI will be an important consideration for portfolio construction,” Hamilton Lane concluded.
Amid a series of changes in the energy sector and a rising global price environment, estimates suggest that Venezuela could turn up the dial on its oil production. Considering a range of variables, the Institute of International Finance (IIF) estimates three possible scenarios for the future of this industry in the Latin American country, which would result in an increase of between 150,000 and 500,000 barrels per day.
“Recent policy changes and public policies have reset parts of Venezuela’s operating environment,” the institution said in a recent report. “Targeted easing of sanctions, stricter U.S. oversight, and changes in the domestic legal framework have opened the way for a limited recovery, while the scale of the resource base implies that sustained investment could bring significant gains over time,” they added.
Nevertheless, the Institute emphasized that production prospects remain constrained by persistent challenges at the operational, financial, and governance levels. This keeps short-term outlooks at a high level of uncertainty.
Against this backdrop, the IIF calculated how oil production in Venezuela could improve in the future, based on three projected scenarios, taking into account the state of current assets, cost structures, and realistic implementation timelines.
A modest scenario
In a scenario of modest improvements in crude production, the institution foresees a gradual recovery in output from early 2026 levels. This process, they note, would be supported by regained access to markets following some disruptions in exports.
“Short-term gains would be driven by Chevron’s joint venture operations, given PDVSA’s constrained operational capacity, with only limited contributions from other partners such as Repsol,” the IIF said in its report, signed by María Paola Figueroa, Martín Castellano, and Yifei Zhu.
Under this scenario, they estimate that production could rise from the one million barrels per day recorded by the industry last year by around 150,000 barrels per day over the next two years, assuming operational continuity.
“While access to diluents has improved thanks to licensed imports, easing a key constraint, production growth would still be limited by bottlenecks in ports and exports, weak refining capacity, aging infrastructure, depressed drilling after years of underinvestment, and an investment environment that remains uncertain and does not favor broader capital flows,” the IIF noted.
A moderate scenario A more optimistic context is what the Institute currently considers its base case, and this outlook would bring a larger increase in oil production.
“Emerging signs of investor participation point to an improved environment that could lift production by between 300,000 and 350,000 barrels per day over the next two years, bringing it to the range of 1.3 to 1.4 million barrels per day,” they projected.
In this scenario, most of the gains are expected to come from heavy oil assets in the Orinoco Oil Belt, along with a selection of western fields requiring limited rehabilitation.
“The increase in production would be driven by well reactivations, targeted infrastructure repairs, and other short-cycle investments in current operations,” the institution forecast.
In this regard, they state that this case would reflect greater use of existing capacity and improved operating conditions for operators already in place. It would also maintain more modest capital requirements than a full reconstruction of the sector.
An optimistic scenario “A more decisive improvement in policies and the investment environment could support a stronger production response over the next two years,” the IIF stated.
In this scenario, which provides more support for the sector’s recovery than the others, the institution estimates that production would increase by around half a million barrels per day, bringing it to 1.5 million barrels.
The expectation in this context is that gains would extend beyond a short-cycle recovery, and that well reactivations would include greater extraction activity and increased project development across the Orinoco Oil Belt and selected fields.
“Achieving this short-term expansion would require more stable fiscal and contractual terms, progress in resolving legacy debt arrangements, and a more durable framework for licenses and sanctions,” they noted.
In addition, they emphasized in their report that this scenario would also depend on a broader reconstruction of critical infrastructure — including transportation, networks, storage, and export terminals — along with the rehabilitation of the energy sector, given its central role in on-the-ground operations.
Photo courtesyFrank Groven, Head of Global Financial Institutions at Robeco; and Amr Albialy, Head of Institutional Sales for EMEA and North America at Robeco
Robeco has appointed Amr Albialy as Head of Institutional Sales for EMEA and North America, and Frank Groven as Head of Global Financial Institutions, a new role within Robeco’s Wholesale division. These two senior appointments within the sales and marketing team will be effective as of April 1, 2026. Both reflect the strength of internal talent and reinforce the company’s commitment to long-term commercial growth in key global markets.
Amr Albialy has served as interim Head of Institutional Sales for EMEA and North America since September 2025. Based in Dubai, he will continue to lead the sales business in the Middle East and Central Asia. He joined Robeco in 2011 as Head of Sales for the Middle East business and later became Regional Head of Institutional Sales for the Middle East and Central Asia. Over the past 15 years, he has been instrumental in expanding Robeco’s institutional presence in the region, delivering strong commercial performance, driving growth, and building long-standing strategic partnerships with clients.
Frank Groven has been appointed Head of Global Financial Institutions. He will be responsible for leading and expanding Robeco’s commercial relationships with global financial institutions, accelerating the development of the firm’s global wholesale distribution strategy. Groven previously served as Head of Wholesale for Belgium and Luxembourg (BeLux) and has been with Robeco for more than 18 years, initially joining as a Fixed Income Client Portfolio Manager. Since 2012, he has led commercial development in the BeLux region. To ensure continuity in BeLux, Erik van de Weele, currently Sales Manager BeLux, will assume Frank Groven’s responsibilities as interim head of the region.
Ivo Frielink, Global Head of Sales and Marketing at Robeco, stated that he is pleased “to strengthen our sales team with these senior roles filled by trusted colleagues from within our own organization. Both bring extensive experience, proven commercial strength, and a strong commitment to our clients, our colleagues, and our strategy. Their appointments ensure continuity in our leadership and reinforce our ability to execute long-term commercial objectives. I look forward to working together as we continue building on Robeco’s growth ambitions.”
As global wealth becomes more volatile, demand is growing for advisory firms that understand both the U.S. financial system and the needs of international investors arriving in this market; these clients generally seek advisors who can help them build globally diversified portfolios while navigating the complexities of cross-border investing.
Aventura Private Wealth, a Registered Investment Advisor (RIA), understands that this is essential. Its co-founder and director, Shmuel Maya, speaks with Funds Society about the firm’s evolution since its founding in 2023, as well as the challenges and opportunities facing the U.S. offshore market in general.
“When I founded Aventura Private Wealth, I identified a gap in how traditional financial institutions served high-net-worth international clients. Many offshore investors seek diversified exposure to U.S. capital markets; however, over the past decade, access has become more restricted, as large institutions have increased their minimum investment requirements or reduced the services available to offshore clients,” the interviewee notes.
Identifying this opportunity was key to the company’s rapid launch and consolidation. “Over the past decade, many large institutions have reduced the services available to offshore clients or have significantly increased the minimum requirements to access their platforms. This has created a gap for international investors who still seek diversified exposure to U.S. markets,” he explains.
Thus, the firm’s objective is to build a fiduciary advisory platform capable of responsibly serving these investors, providing them with thoughtful access to the depth of U.S. financial markets. “From the beginning, we have focused on disciplined portfolio construction, expertise in cross-border investments, and a client-centered advisory relationship,” says its chief executive and co-founder.
Aventura Private Wealth offers its clients a meaningful differentiator compared to large global banks and other independent boutiques: its experience in managing cross-border investments in highly complex scenarios.
“For offshore clients, investing in the United States requires more than simply selecting investments. It involves understanding regulatory frameworks, jurisdictional considerations, and the structural implications of investing across different borders,” says Shmuel Maya.
This is highly relevant because, according to the interviewee, many firms underestimate this complexity; in contrast, Aventura Private Wealth responsibly guides international clients with its expertise, while also offering sophisticated portfolio construction and comprehensive wealth management services.
The Challenge of Cross-Border Wealth Management
With these premises, the firm focuses primarily on high- and ultra-high-net-worth offshore clients, particularly entrepreneurs and families in Latin America and Europe seeking diversified exposure to U.S. capital markets.
Latin American investors, in particular, have long viewed the United States as a cornerstone of global diversification.
“The United States offers some of the deepest and most liquid capital markets in the world, along with a broad universe of investment opportunities that are often not available in domestic markets. As a result, many investors in the region seek advisors who can help them build globally diversified portfolios anchored in U.S. assets,” explains Shmuel Maya.
These investors are becoming increasingly sophisticated and expect advisors who understand both the investment landscape and the cross-border considerations involved.
According to the expert, one of the most common mistakes occurs when advisors do not fully understand the jurisdictional rules of the client’s country of origin. In this sense, cross-border wealth management requires coordination among investment strategy, regulatory considerations, and legal frameworks across multiple jurisdictions. When these factors are overlooked, unintended tax consequences or structural inefficiencies may arise.
The Investment Philosophy of Aventura Private Wealth
“Our investment philosophy remains disciplined and diversified, with a focus on identifying long-term structural trends that may influence economic growth and capital markets,” says the firm’s chief executive.
He notes that they are currently closely monitoring sectors aligned with national and global strategic priorities. Areas such as artificial intelligence, energy infrastructure, critical materials, and defense-related technologies are receiving significant attention in terms of public policy and investment.
“When appropriate, clients may gain exposure to these themes through a combination of public market investments and selective opportunities in private markets.”
For the firm, its investment philosophy is always aligned with market trends, as, for example, high-net-worth investors today are significantly more informed and have a much more global perspective than a decade ago.
Therefore, these clients expect broader access to investments and a more strategic approach to portfolio construction. This includes traditional public markets, as well as selective access to private companies and private market investments that were historically available primarily to institutions.
“Many investors recognize that some of the most transformative companies remain private for longer periods and seek advisors who can strategically integrate those opportunities within a broader wealth strategy,” he says.
Regulation, a Fundamental Pillar for Trust
Aventura Private Wealth is a firm convinced that regulation plays a fundamental role in maintaining the integrity of financial markets and strengthening trust between advisors and clients.
“From the outset, we structured Aventura Private Wealth as a fee-based fiduciary advisory firm, because alignment of interests is essential for long-term relationships. We also prioritized building a strong compliance infrastructure from early stages, incorporating leadership with experience in regulatory compliance,” explains Shmuel Maya.
Challenges and Opportunities for Boutique Wealth Managers
Wealth management is not a passive task, it never has been, but in modern times, this premise is more true than ever. According to the interviewee, one of the most significant developments shaping the industry is the integration of technology and artificial intelligence.
“Technology will enhance research capabilities, operational efficiency, and the client experience. At the same time, the industry is undergoing a generational transition among financial advisors,” he says.
Thus, “Firms that succeed in combining technology with highly personalized advisory relationships will be well positioned to thrive in the coming years,” he concludes.
Do you remember what you were doing exactly a year ago? Most likely, you were glued to your Bloomberg terminal or responding to calls and emails from your clients while the S&P 500 index plunged by as much as 18.7% from its peak in February. Yes, it has already been a year since ‘Liberation Day,’ and the image that has gone down in history is that of Donald Trump holding an enormous board listing each of the tariffs that the U.S. was going to apply to countries with which it maintained a large trade deficit—though not exclusively.
For the markets, this staging had another meaning: the return of volatility and uncertainty that continue today, now driven by geopolitics and oil. As Mauro Valle, head of fixed income at Generali AM (part of Generali Investments), points out when taking stock of this first year of a new normal in U.S. trade policy, the most relevant aspect is the changes in the market that have occurred since Liberation Day.
“President Trump’s protectionist policy had two consequences in the months following the announcement of the tariffs. The first was in the bond market, where the yield on the 10-year U.S. Treasury rose sharply. The second, which still largely persists, was a weaker dollar against currencies such as the euro. In fact, the dollar has depreciated in recent months due to other factors such as twin deficits, geopolitics, and the fragmentation of global capital flows. However, in these recent phases of acute risk aversion, it can still strengthen tactically, reflecting its liquidity function. It remains to be seen whether, after this crisis, the dollar will continue to be perceived as a safe-haven asset or not,” explains Valle.
Market Performance
The surprise has been that, despite the initial impact, the balance of the past year shows a different message: emerging markets defied expectations and led the gains in global stock markets one year after the announcement of the Liberation Day tariffs. According to data analyzed by Aberdeen Investments, which focuses on comparing percentage changes to assess how markets have performed across six major global markets between the market close on April 2, 2025, and one year later, on March 27, 2026, overall, most major indices experienced positive dynamics, with emerging markets at the forefront.
According to the asset manager, global stock markets recorded strong gains over the period, but the MSCI Emerging Markets index had the best performance, with a rise of 26%, followed by the FTSE 100, with 16%, and the FTSE World, with 14.1%. Meanwhile, the S&P 500 posted an increase of 9.6%, while the Dow Jones and the DAX recorded more modest gains of 4.4% and 3.1%, respectively.
“During the past year, investors have had to make sense of a great deal of noise and uncertainty, in addition to the human impact of global events. Although we would never want to draw major conclusions from a single year of market data, our analysis is interesting, and this period has served to remind us that headlines do not always tell the whole story. Even at a time when markets and geopolitics seem more entangled than ever, the figures can sometimes point to something different. Our main recommendation has been to encourage investors to diversify their equity allocations and, in that sense, it is encouraging to see that markets outside the United States are leading the way at a time of great uncertainty,” notes Ben Ritchie, Head of Developed Markets Equities at Aberdeen Investments, in light of these conclusions.
Economic Resilience
In the opinion of Jon Butcher, Senior U.S. Economist at Aberdeen, one year after “Liberation Day,” the U.S. economy has demonstrated resilience despite a clear cooling of the labor market. “Hiring slowed sharply in the months following the announcement of the tariffs, as companies assessed rising costs and policy uncertainty. Even so, growth held up better than expected, as households continued to spend and business investment accelerated. Tariffs did boost inflation, but the impact has been slower and smaller than the market initially feared,” says Butcher.
In addition, it is noteworthy that trade in 2025 did not contract, despite gloomy forecasts. “Both U.S. imports and Chinese exports reached new highs. Southeast Asia deepened its role in global manufacturing, India gained ground in selected sectors, and Brazil expanded commodity exports to China. Overall, trade grew faster than the global economy, while advanced economies and China reoriented away from geopolitically distant trading partners,” notes the McKinsey Global Institute in its latest report.
However, according to the think tank of McKinsey & Company in its report, tariffs triggered a reshaping of trade, with trade between the U.S. and China falling by around 30%. “The United States replaced approximately two-thirds of that gap with imports from other suppliers, while Chinese exporters of consumer goods, from electric cars to toys, cut prices by an average of 8% to find buyers in new markets. ASEAN prospered, increasing trade with both economies, but the European Union faced a double pressure: more Chinese imports and higher U.S. tariffs,” they add.
Lessons Learned
This episode leaves several lessons learned. First, according to the McKinsey Global Institute, changes in trade point to some lasting trends and, consequently, to the need for resilience in the face of shocks. “AI, the growth of emerging markets, and the evolution of China’s manufacturing approach are not temporary phenomena, nor is the growing role of geopolitics in reshaping trade, a shift that has been evident in the data for nearly a decade. Short-term developments also require a response. Tariff changes in 2025 were abrupt, and 2026 has already brought its own shocks. Companies need a long-term vision combined with agility,” they note.
Second, the Aberdeen economist warns that the political landscape has become even more uncertain: “The Supreme Court ruling on the IEEPA has cast doubt on the future of the tariff regime, and efforts to rebuild parts of it through other policy tools have left companies unsure about what the long-term rules of the game will be. For markets, the greatest risk is the growing perception among global investors that the United States is becoming a less reliable destination for capital. Concerns have increased about political volatility, central bank independence, and fiscal pressure. And although attention has shifted toward the Iran crisis and energy prices, tariffs remain a critical unresolved factor shaping how international capital perceives the United States.”
Finally, Capital Group reminds us that when markets are volatile, it is difficult to resist the temptation to do something, but they recommend staying the course. “What is the lesson of ‘Liberation Day’? Market downturns can be painful, but rather than trying to time when to enter or exit the market, the most sensible approach for investors is to stay the course. To weather market volatility, they should seek diversification across equities and bonds, while periodically assessing their risk tolerance in the face of elevated volatility. Although it may seem that this time is different, markets have proven resilient throughout history when faced with wars, pandemics, and other crises,” they insist.
Political swings recorded especially in Latin America so far this century have deepened the phenomenon of wealth migration, the outflow of capital, wealth, and individuals seeking greater stability and certainty for their fortunes, their families, and themselves.
This wealth migration, in turn, is driving a kind of “reconquest” of places and cities where wealthy migrants settle and create hubs of wealth and ultra-wealth, particularly in several of the most important cities in the United States and even in Europe.
“The phenomenon of wealth migration is not new, but it has intensified in recent years, not only in Mexico but across Latin America; with the rise of left-wing governments in the region, a certain degree of legal and financial uncertainty has emerged, intensifying the migration of wealth in search of security,” explains Juan Carlos Eguiarte, Country Manager of BAI Capital Financial in Mexico, a boutique real estate developer based in Florida, USA.
Which are these hubs of wealth and ultra-wealth driven by wealth migration? Here is a review of some of the most notable in recent years, which are not necessarily the only ones.
Key Biscayne, the “Spain of America”
Key Biscayne, a locality located southeast of Miami, Florida, is fully consolidated as one of the most exclusive and sought-after residential enclaves, home to wealthy families, celebrities, and senior executives, with a strong presence of Latin Americans and, above all, Spaniards—so much so that some affectionately call it “Key Spain.”
Real estate managers in that region know what wealthy migrants are looking for and offer it to their clients; the proposition to make them “land” there is simple: a “country club” lifestyle, maximum security, privacy, and natural beauty, all close to the vibrant urban life of Brickell and Miami Beach.
Key Biscayne, or “Key Spain,” offers luxury beachfront condominiums and private mansions, with prices reflecting high demand and limited land availability. In addition, the majority of the population in Miami-Dade County is Hispanic (69.1%), which facilitates the cultural integration of newcomers. But beyond that, the range of figures related to this hub of wealth and ultra-wealth in the United States linked to Spain and Latin America leaves no doubt about what wealth migration has generated in this location.
Key Biscayne is one of the communities with the highest concentration of foreign-born residents; the total Hispanic population represents 70.3% of inhabitants (approximately 10,400 people), and it is estimated that 58.1% of the current population was born outside the United States, according to 2025 figures from Data USA.
This region concentrates one of the highest per capita wealth densities in Florida. The median household income stands at $181,505 (more than double the U.S. national average); likewise, the average household income is $309,291 (this figure is higher due to the concentration of ultra-wealthy families).
Regarding wealth distribution, it is estimated that 48% of households in Key Biscayne have incomes above $200,000 per year, while per capita income is estimated at $106,219 (valued for 2024). All figures are from the U.S. Census Bureau, as of the end of 2025.
But the narrative of a “safe haven for capital” is supported by the fact that these groups not only live there, but also use the island to dollarize and protect their wealth. Data from the MIAMI Association of Realtors (2025–2026 reports) indicate that international buyers (led by Latin Americans) acquired 49% of all new luxury units in South Florida up to June 2025.
In addition, 68% of Latin American investors in the area pay for their properties entirely in cash, evidence of their very high liquidity and their intention to protect savings from instability in their countries of origin. And they are not there just for fashion or short stays; 91% of buyers in this region acquire properties in Miami and its islands for investment or second-home purposes.
But not only in Key Biscayne—Florida has other attractive locations for wealthy Latin Americans migrating in search of security and certainty.
Weston, Florida (“Westonzuela,” the South American hub)
Located in Broward County, near Fort Lauderdale, Weston is considered one of the cities with the highest quality of life in the United States and has become the epicenter of wealth migration for Venezuelans, Colombians, and Argentinians—essentially South America as a whole. Surprisingly, Weston is considered one of the most Hispanic cities in the country; 56.8% of its residents are Latino. The concentration of Venezuelans is so high that it is informally known as “Westonzuela” (Venezuela).
Weston attracts highly educated professionals and business owners; it is estimated that more than 53% of its residents are foreign-born, many of whom arrived with capital to invest in franchises and real estate. This small U.S. territory represents the success of the upper-middle and upper classes of South America, who seek a perfect suburban environment (A-rated schools, total security, and parks) without losing their Latin cultural connection.
Miami, a magnet for Latin American capital
Wealth migration has turned Miami into a kind of “magnet” for Latin American capital, with several additional examples. Doral is a hub where wealth migration translates directly into commercial and logistics activity, unlike Key Biscayne, which is more residential and leisure-oriented. Nearly 80% of its population is of Hispanic origin, and it has the highest concentration of Venezuelans per capita in the United States.
The flow of wealth into private banking offices in Miami (which serves Doral) grew by 10% annually from Mexico, Argentina, Chile, and Peru, seeking security amid political instability. Doral hosts more than 150 corporate headquarters and thousands of small and medium-sized enterprises founded by wealth migrants who have replicated their successful Latin American business models on U.S. soil.
It is a key logistics hub; its proximity to Miami International Airport allows Latin capital to control a large share of import/export trade with the region. Brickell (Miami) is, in turn, the financial district that has received a massive influx of “technolatinas” (startups valued in the millions) and investment bankers from the region.
Meanwhile, Coral Gables is considered the historic refuge of Central American and Spanish industrial families, characterized by Mediterranean architecture and one of the highest concentrations of consulates and multinational companies from Latin America.
One thing is clear: the wealth of Latin American and Spanish families does not arrive in the United States in a passive form (savings), but is highly active, accounting for 49% of new luxury developments in the region by mid-2025. But in the southern United States, and across the Atlantic, there are more examples of what capital can achieve when it has certainty and security.
The Woodlands (Texas), the refuge of the Mexican elite
Located north of Houston, The Woodlands has become a residential refuge and a luxury “oasis” for thousands of high-net-worth Mexican families, entrepreneurs, and politicians seeking security, certainty, and quality of life. But The Woodlands is not just a suburb; what wealthy and ultra-wealthy Latin Americans—especially Mexicans—have built here is an entire financial and security ecosystem designed for the transfer of large amounts of capital from Mexico (mainly Mexico City, Monterrey, and Puebla).
Unlike other migration waves, in this case the migration is purely wealth- and business-driven. It is estimated that more than 10,000 high- and ultra-high-net-worth Mexicans live in The Woodlands; the boom was driven by peaks of insecurity in Mexico (2006–2012 and 2018–2024), which turned The Woodlands into a “luxury extension” of neighborhoods such as San Pedro Garza García (Monterrey; the wealthiest municipality in Latin America) or Tecamachalco (Mexico City). In fact, the presence of institutions such as The John Cooper School or The Woodlands Prep is a decisive factor. For example, tuition can exceed $30,000 per year per child.
Real estate is the main vehicle for sheltering Mexican capital in Texas. Although the average price of homes ranges from $600,000 to $800,000, in areas where wealthy and ultra-wealthy Mexicans concentrate (such as Carlton Woods), mansions range from $2.5 million to as much as $15 million.
And if all the previous figures and data were not enough, one stands out as a clear indicator of the level of wealth generated in The Woodlands thanks to Latin American wealth migration: the cost of living in The Woodlands is 12% higher than the U.S. average, driven by the luxury consumption of its residents.
Salamanca District (Madrid), wealth migration that crosses oceans
Madrid, Spain, is a magnet for Americans and Latin Americans; in this city, for the past couple of years, one has heard the quip that the Salamanca district has become the “new Miami.” This is not just a perception—data supports it. The Luxury Homes 2025 report, prepared by Colliers, states that 55% of Madrid’s high-end supply is concentrated in the Salamanca district and that Madrid attracts international investors “especially from Latin America and the United States.” According to its conclusions, Madrid has climbed the rankings to become the second most attractive European city for real estate investment, surpassed only by London.
During 2024, approximately half of the homes purchased in the Community of Madrid were located in the capital, and 7% of these corresponded to foreign investors. This phenomenon has been particularly driven by buyers from Latin America and the United States, placing Madrid among the five most profitable markets for high-end residential investment. Likewise, Madrid has positioned itself as the fourth most attractive city globally for High Net Worth Individuals (HNWIs), leading the European ranking.
Specifically, the Salamanca district has been the clearest example of this trend. According to the Madrid Insight 2025/26 report, prepared by Knight Frank, the supply of newly built prime housing in its streets has fallen by nearly 20% between 2020 and 2025, helping to explain price pressure in an area where international demand is very strong.
“The Salamanca district continues to be the epicenter of the prime market, concentrating most high-price transactions. Within the district, neighborhoods such as Castellana and Recoletos stand out, with average prices currently ranging between €13,000/m² and €15,400/m². This is where the most exclusive properties are located, along with a top-tier commercial and gastronomic offering that reinforces its position as the most prestigious area of Madrid,” the report notes. For now, no increase in new prime housing developments is expected in this district due, according to Knight Frank, to local regulations and the city’s urban style.
In a week of significant geopolitical turmoil and market volatility, UBS has presented its Global Investment Returns Yearbook 2026, in which it places current investment challenges and debates into a long-term perspective, following a historical analysis of markets since 1900. Taking into account the current context, the main conclusion of this year’s edition is that global markets have undergone a profound transformation.
“At the beginning of the 20th century, the global stock market showed a relatively balanced distribution; today, by contrast, the United States dominates global market capitalization, representing 62% of the total equity market value. This reflects strong long-term equity returns and sustained equity issuance, even as the United States’ share of global GDP has declined from its mid-century peak,” the report notes.
A significant shift can also be observed in the sectors that have dominated global markets. Of the U.S. listed companies in 1900, nearly 80% of their value was concentrated in sectors that are now small or have disappeared, such as railroads, textiles, iron, coal, and steel. Meanwhile, 70% of today’s U.S. companies come from sectors that were small or nonexistent in 1900. By contrast, technology and healthcare were virtually absent from stock markets in 1900.
According to the report, investors often associate new technologies with “bubbles” and subsequent periods of lower returns. However, as was the case with railroads, despite being a declining sector over the study period (falling from 63% of the U.S. market in 1900 to less than 1% today), they actually delivered returns higher than both the U.S. stock market and their more recent technological competitors since 1900.
Other Lessons from the Market
Another clear conclusion from the report is that “equities are the best-performing liquid asset.” Specifically, equities have outperformed bonds, bills, and inflation since 1900: an initial investment of $1 grew to $124,854 in nominal terms by the end of 2025. Long-term bonds and Treasury bills delivered lower returns, although they outpaced inflation. Their respective index levels at the end of 2025 were $284 and $69, while the inflation index ended at $38.
“This outperformance is not unique to the United States. The Yearbook shows that equities were the best-performing asset class in all 21 countries with continuous investment histories covered in the Yearbook. Meanwhile, bonds outperformed bills in every country except Portugal. This pattern supports one of the enduring laws of finance, the risk-return trade-off, and the idea that taking risk should entail an expected reward,” explain UBS.
On the other hand, it is observed that developed markets have delivered better long-term results. In fact, since 1900, developed markets have recorded higher annual equity returns (8.5%) than emerging markets (6.9%). However, the report notes that “in more recent periods, emerging markets have outperformed developed ones, with an annual return of 10.9% between 1960 and 2025, compared with 9.6% for developed markets.”
Finally, the report highlights that inflation has a key impact on long-term returns. According to its analysis, although inflation in the United States has been relatively low compared with global standards—averaging 2.9% annually since 1900—its cumulative effect is highly significant: $1 in 1900 is equivalent to approximately $38 today. “Therefore, when comparing returns over time or across countries, the focus should be on real returns adjusted for inflation. In this regard, real equity returns have significantly outpaced inflation,” the report concludes.
Photo courtesyNicholas Stockdale, Global Head of Infrastructure Credit of Santander Alternative Investments.
Santander Alternative Investments (SAI) has appointed Nicholas Stockdale as Global Head of Infrastructure Credit. Stockdale has more than 25 years of experience in infrastructure debt financing across different subsectors.
This appointment strengthens Santander Alternative Investments’ capabilities in infrastructure credit, one of the key areas within the group’s alternative investment platform. Currently, Banco Santander has more than €12 billion committed to alternative assets.
“The addition of Nicholas represents a further step in strengthening our infrastructure credit platform. His experience in structuring, investing, and raising capital across different geographies will be key to continuing to develop this strategy and to offer differentiated solutions to our clients,” explains Borja Díaz-Llanos, Chief Investment Officer at Santander Alternative Investments.
Before joining SAI, Stockdale developed his career for around a decade in senior asset management roles at Queensland Investment Corporation and Patrizia (formerly Whitehelm Capital). During this period, he led and closed multiple proprietary high-yield infrastructure debt investments across different geographies through two co-mingled debt funds and three separately managed accounts (SMAs). In addition, he was responsible for capital raising in Europe and Asia and has extensive experience in structuring debt fund platforms with one or multiple investors across different jurisdictions.
Previously, he worked for 16 years at Barclays Investment Bank, where he held various senior positions and participated in closing more than 20 infrastructure financing transactions under non-recourse or project finance structures, as well as numerous corporate transactions across the credit spectrum, including acquisition financings, bridge loans, term loans, and revolving credit facilities (RCFs). Before his time at Barclays, he spent two years in the project finance team at Edison Mission Energy, a power generation subsidiary of Edison International.
Stockdale also has experience as a board member, having served as chairman of QIC’s UK subsidiary and as a member of various fund entity boards and investment committees.
A British national, he began his professional career at PwC, where he qualified as a Chartered Accountant in 1997. He holds degrees in Chemistry and Law from the University of Exeter.
Marcus Vinicius, Head of U.S. Offshore at Franklin Templeton, marks three years leading the business in the region with a clear objective: to accelerate growth in this strategic market. The U.S. Offshore office is also in the midst of team expansion, at a time when the firm is doubling down on placing the client at the center of its strategy and elevating the level of service across all client needs.
From his office in South Florida, Vinicius leads a platform that operates as a true “microcosm” of cross-border business, serving a global client profile: from Latin American investors in Miami and Texas to Asian clients in California or European clients in New York. In this exclusive interview with Funds Society, he reviews the past three years, analyzes how offshore client needs have evolved, and outlines Franklin Templeton’s ambitious roadmap in technology and product.
What changes has Franklin Templeton made for U.S. Offshore?
The most important change comes from the client side. We are seeing a clear consolidation of business: clients want to work with fewer asset managers, but with greater capabilities.
They are looking for comprehensive solutions, efficient vehicles, and partners who understand their portfolios and strategies as a whole. That is why our evolution is moving in that same direction: offering all types of strategies through all types of vehicles, combining investments in public and private markets.
In addition, we are a firm with a strong consolidation DNA. Recent acquisitions such as Lexington Partners and Putnam Investments have been particularly transformative, providing us with differentiated capabilities in private markets—in the case of Lexington—and in risk management, product offering, and product quality, in the case of Putnam.
How are you organized from a commercial standpoint?
We have a regional structure made up of teams in Miami, New York, and the West Coast, combining external and internal wholesalers, as well as national accounts.
Beyond the structure, the key is the approach: our teams strive to understand the client holistically and, from there, connect them with the appropriate Franklin specialist teams. It is a model based on internal collaboration, where the goal is not to sell a product, but to build tailored solutions.
Do you have the capability to offer different vehicles, whether an active ETF, a traditional fund, or alternative funds?
Franklin Templeton has undergone a major transformation over the past five years to become what it is today: an integrated global platform with exposure to public and private markets; traditional funds and ETFs; and a strong commitment to digital innovation. The challenge now is not only to offer strong products, but to clearly communicate who we are: a firm with both public and private capabilities under one umbrella. In a context where clients demand fewer providers but with greater capabilities, we believe Franklin—with more than $1.74 trillion in AUM as of February 2026—is well positioned to meet this need.
You mentioned Lexington. Do you have additional interest in the alternatives segment?
Private markets are one of the main growth levers at the core of our global strategy. Today, we have significant capabilities in private credit, real estate, private equity, and infrastructure.
In addition, we are witnessing a degree of “democratization” of these markets, with evergreen vehicles that allow wealth investors access to these types of assets—something that was previously reserved for institutional investors.
Beyond the capabilities mentioned earlier, we have strengthened our offering through strategic partnerships in infrastructure with Actis, DigitalBridge, and Copenhagen Infrastructure Partners, focused on structural trends such as the energy transition and digitalization.
At the distribution level, how is Franklin Templeton organized?
Franklin Templeton has a global distribution structure that combines the capabilities of a large global asset manager with a strong local presence in key markets.
In this context, the Iberia and Latin America region plays a relevant role within the group’s global strategy, reflected in a solid local presence with eight offices across the region, more than 150 professionals, and local asset managers in Mexico and Brazil. Javier Villegas is responsible for the firm’s growth plans at the regional level. Locally, distribution strategies are led respectively by Hugo Petricioli (Mexico), Ana Álvarez (Iberia), Marc Forster (Brazil), Sergio Guerrien (South America), and myself in U.S. Offshore.
At a global level, the structure was recently strengthened with the appointment of Daniel Gamba as Chief Commercial Officer and Co-President in October 2025. Together with Terrence Murphy (Head of Public Market Investments) and Matthew Nicholls (Chief Financial and Operating Officer), they form a team of three Co-Presidents who, under the leadership of our CEO Jenny Johnson, help reinforce the execution of the firm’s strategy.
What is the process for launching a vehicle?
Our approach is global. In private markets, we typically start in the domestic market and, once the product gains traction, we scale it internationally.
In listed markets, we have significantly expanded the offering—for example, through the integration of Putnam’s products, which had a strong base in the U.S. but less international presence.
Ultimately, the goal is to create scalable solutions that can be efficiently distributed across multiple geographies, and in that regard, I believe we have a significant competitive advantage due to our global distribution capabilities.
Focusing on clients, you mentioned that they increasingly want to work with fewer firms. What other trends do you see in U.S. Offshore?
For every fund our major clients approve, they approve a much larger number of ETFs. Today, we manage between $60 billion and $70 billion, but our ambition is to grow much further. We want to be in the top 10 ETF providers across all asset classes, covering active, passive, and smart beta.
We are working on scaling our platform, always adapting to the needs of each market. Clients no longer choose between traditional funds or ETFs—they seek flexibility and efficiency.
Overall, the offshore client is increasingly global and sophisticated. They seek customized solutions, access to private markets, and a flexible vehicle architecture.
In addition, they are particularly sensitive to tax and geopolitical factors, making financial advice essential. In this context, our goal is to position ourselves as a strategic partner, not a product provider.
For a large global account, what is typically preferred: the active ETF or the traditional fund?
It is increasingly less about choosing between an ETF or a fund. Clients are looking for flexibility and to use the vehicle that best fits their architecture, whether for operational, tax, or portfolio construction reasons.
What we do observe are regional differences. While in markets such as Brazil there is still a stronger orientation toward funds, in Mexico the use of ETFs is growing significantly. However, the global trend is consistent: accessing the same strategy through different types of vehicles.
What other trends do you see in ETFs?
We see three clear trends: the growth of active ETFs as a portfolio construction tool; the convergence of this type of vehicle with private markets; and tokenization, which, although still in development, has enormous potential to transform the industry by improving efficiency, reducing costs, and enabling near real-time transactions.
What is your culture regarding AI integration?
It is one of the key pillars of our global strategy. We are investing in data analytics, artificial intelligence, and especially tokenization.
As I mentioned earlier, we firmly believe that tokenization can completely transform our industry, as it enables greater efficiency, reduces operational costs, and improves distribution processes. For example, it can facilitate near real-time transactions and significantly reduce the operational burden.
We are also seeing how financial infrastructure is evolving toward blockchain-based models, where Franklin Templeton already has a pioneering position.
Looking ahead, are there plans for further acquisitions?
It is not for me to speculate on potential acquisitions, but referring to what our CEO has said on several occasions, I can say that if an acquisition opportunity arose that made strategic sense for Franklin, we would likely be open to considering it.
The company has a strong track record of consolidation within the industry and is currently in a favorable position, as it has both best-selling products and niche offerings.
Since the acquisition of Legg Mason in 2020, we have completed around ten acquisitions, and in five years we have grown from $700 billion in assets under management to more than $1.67 trillion. Today, the focus is on establishing ourselves as a strategic partner to our clients, as we have the capabilities to achieve this. We now have a global platform, capabilities in public and private markets, diversification by strategy and product type, technological innovation, and a strong focus on delivering tailored solutions for our clients.
The wealth of the world’s billionaires reached an unprecedented figure in 2025: $15.8 trillion. This is highlighted in the latest report by UBS, which notes that there are now nearly 3,000 billionaires worldwide. Despite economic instability and international tensions, the value of their wealth has grown by 13% in just one year, driven mainly by strong financial markets and business innovation.
The United States has been the country that benefited the most from this growth, leading this expansion. There, billionaire wealth increased by 18%, thanks to the momentum of technology companies and the creation of new large fortunes. Asia-Pacific also experienced a positive year, while Europe grew at a more moderate pace. Overall, the global wealth map confirms that the creation of large fortunes remains highly concentrated in a few countries, as shown in the report.
Technology has once again been the main driver of growth. Fortunes linked to this sector increased by nearly 24%, driven by the rise of artificial intelligence, chips, and digital services. Companies such as Nvidia, Meta, and Oracle strengthened already established fortunes, while in China the technology sector showed signs of recovery after a period of slower momentum.
Other sectors also recorded significant gains. The industrial sector grew the fastest, with an increase of 27%, supported by the expansion of the aerospace and electric vehicle industries. Financial services grew by 17%, boosted by the stock market recovery and the rebound in digital assets, while the consumer and retail sector showed more moderate growth, affected by the slowdown in European luxury.
A notable finding of the report is the evolution of female wealth. Although women represent a minority (374 compared to 2,545 men), their average wealth grew by 8.4%, more than double that of male billionaires. Much of this female wealth is concentrated in sectors such as consumer and retail, where inheritance continues to play a decisive role, especially in Europe.
By region, in addition to the United States and China, Singapore and Germany stood out as particularly dynamic markets. Singapore increased the wealth of its billionaires by more than 66%, while Germany led growth in Western Europe. In contrast, France recorded a significant decline due to the drop in the value of large fortunes linked to the luxury sector, confirming a shift in the cycle of global wealth distribution.
