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Billionaires have the ability to invest in nearly anything. And as they are proven wealth-creators, where they choose to invest can offer a road map to other investors as to how to make money.

Of course, billionaires are distinct individuals who have myriad reasons for investing in one area or another, and not all of them are necessarily great investors. Thus, lumping them all together does each of them a bit of a disservice. But by and large, the more votes that billionaires cast for a certain investment, the more likely that it’s capable of creating long-term wealth.

According to the latest Asset Allocation Report issued by TIGER 21, the peer membership organization for ultra-high-net-worth (UHNW) creators, there has been a recent shift in where UHNW individuals put their money. Here’s a look at the top areas where billionaires are investing and how the average investor can participate.

For the first time in 15 years, real estate lost its top hold in billionaires’ investment portfolios. By a narrow 28% to 26% margin, according to the TIGER 21 report, private equity now holds top billing.

As the name suggests, private equity managers invest in private companies, often startups that are not available to the general public. This can be a great way for billionaires to access the growth potential in companies before they IPO and begin trading on the public stock exchanges, at which point their value is fully realized.

Private equity investments are very different from hedge funds, which used to be a darling of the billionaire community. According to TIGER 21, its members’ allocation to hedge funds dropped from 16% to a meager 2% over the 16-year period from 2007-08 to 2023-24.

Part of the reason for the shift is that billionaires now feel they can get better risk- and fee-adjusted value out of other investments, instead of giving in to the traditional “2-plus-20” structure of hedge funds, which charged investors 2% of assets annually plus 20% of their profits.

Unfortunately, it’s harder for average investors to gain access to private equity like billionaires can. In fact, investors who are not accredited, meaning they meet certain income and net worth requirements, are prohibited from directly investing in private equity.

However, according to Morningstar, more retail offerings that provide access to private equity are on the way.

Some mutual funds are already allowed to invest up to 15% of investors’ money into private equity or other illiquid investments, and some ETFs that focus on private equity are already available on the public markets, such as the Invesco Global Listed Private Equity ETF (PSP) and the ProShares Global Listed Private Equity ETF (PEX).

Real estate is still a popular investment with billionaires, occupying 26% of their portfolios.

Part of the drawdown that caused real estate to lose its top spot was the fact that billionaires are losing faith in office and retail spaces. Personal and secondary homes or other investment properties still draw a lot of billionaire dollars, and likely always will.

However, with the potential of a recession on the horizon, office and retail space is on the way out from billionaire portfolios. In fact, according to the study, some billionaires are actually buying underutilized office buildings and converting them to residential or hotel offerings. This can be a risk, of course, but as many billionaires actually built their wealth leveraging real estate, this strategy can also offer opportunities.

Real estate is obviously a much more accessible investment opportunity than private equity for the average investor. Although it’s true that homes have reached record levels of unaffordability, properties are still available to any investor who can afford the payments.

Having top-tier credit can help you snag the lowest available interest rate, while saving up a sizable down payment can build immediate equity in your property and help you qualify for a mortgage in the first place.

There’s no denying that billionaires often have the inside track when it comes to finding investments that can pay off. But it’s not as if real estate and even private equity are completely inaccessible to the average investor.

While you should never model your investment strategy on anything but your own personal financial objectives and risk tolerance, seeing how the “rich get richer” can provide insights as to where you might want to keep at least some of your money, as well.