“Decarbonization Is the Greatest Investment Opportunity of Our Generation”

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Photo courtesyThomas Friedberger, Deputy CEO and Co-CIO of Tikehau Capital
“It is time to be patriotic about Europe and defend our economic and social model. You can invest in crypto assets or structured products, but that contributes nothing to the real economy. Financing European companies, injecting them with the capital they need to build resilience and sovereignty, is something European investors should actively embrace.”
These are the words of Thomas Friedberger, Deputy CEO and Co-CIO of Tikehau Capital. During a recent visit to Madrid, Friedberger detailed Tikehau’s commitment to long-term investment themes in European assets across public and private strategies. He outlined a macroeconomic landscape where the primary engines driving growth over recent years are handing over the baton to brand-new dynamics.

In recent times, we have had to live with higher levels of volatility and uncertainty. What is your core macroeconomic scenario?

Our conviction since the end of the COVID crisis is that we are entering a world of lower growth because future growth will be far less optimized. For years, there was tremendous visibility surrounding globalization and the trajectory of interest rates, which allowed companies to optimize numerous operational facets—from capital structures to supply chains. However, that optimization turned into a vulnerability during COVID and subsequent geopolitical tensions.
What the world needs now is to build resilience rather than efficiency, and that comes at a cost. Resilience requires heavy capital expenditures (capex), maintaining larger inventories, operating with higher capital buffers, and purchasing hedges against climate and cyber risks. Consequently, I believe corporate profit margins will face ongoing pressure on both revenue and cost fronts.
Furthermore, this lower growth will be accompanied by higher inflation. Deglobalization is inherently inflationary because those heavy capital investments are partially financed through public debt and massive fiscal expansion. Moreover, while artificial intelligence was expected to exert deflationary pressures, it is currently proving to be inflationary: it is driving up prices for semiconductors and electricity. Shifts in Asian currencies also play a role—for years, weak currencies contained global inflation, but the renminbi’s appreciation could generate renewed inflationary pressure. My point is that it is not just the energy crisis driving inflation. The last time we saw a setup like this was in the 1970s.

How can investors fortify their portfolios to navigate these risks?

In a world where interest rates no longer fulfill their traditional role of shielding investors, risk assets face mounting pressure. It is a very complex environment because investors have virtually nowhere to hide. Historical market leaders argued that the only way to navigate such a scenario was to invest with a sufficient margin of safety to absorb potential hits to operational earnings from lower growth and higher inflation.
Yet, if you look at market behavior today, you see the exact opposite. Capital is flowing into assets at sky-high valuations—not just in AI, but also in fixed income, where credit spreads in certain segments are extremely tight. At Tikehau Capital, we remain committed to maintaining strict discipline and avoiding FOMO, even when challenging. Because we co-invest our own balance sheet capital alongside our shareholders and LPs, we are the first to feel the impact of investment missteps. This is why we are deploying capital with extreme prudence, particularly in private credit.

Are you conscious that your stance sounds extremely contrarian?

Yes, but that does not concern me. If the broader market simply follows the crowd, I am comfortable being a contrarian. We believe growth will persist, but it will be far more concentrated than before. Previously, growth was consumption-driven; moving forward, it will be driven by capital expenditure as the imperative shifts toward building resilience.
When growth relies on consumption, nearly every sector benefits. When it depends on capex, only the specific sectors receiving those capital infusions stand to win. The ultimate winners in this environment are the four ‘Ds’: defense, deglobalization, digitalization, and decarbonization. That is precisely why we concentrate our private equity investments on those sectors and the solution providers enabling them.

What happens then to economies like the United States, where consumption accounts for nearly 70% of GDP?

The United States remains heavily reliant on consumption, driven largely by the wealth effect generated by AI. Currently, consumer spending is no longer backed by wage growth; roughly 1.5% of US GDP is tied directly to AI investments, and another 1.5% stems from the wealth effect of retail investors purchasing shares in Nvidia and similar mega-caps. In short, the economy is deeply dependent on artificial intelligence—if this AI investment cycle pauses, major vulnerabilities will emerge.
Another critical factor: over the past decade, high visibility favored asset-light business models designed to return massive amounts of cash to shareholders. Today, the dynamic has reversed; companies require heavy liquidity to fund capex programs. We have seen Google execute the largest debt offering in its history, and SpaceX prepare a massive bond issuance shortly after its public market moves. Ultimately, this capital investment cycle is being funded by leverage. In fact, hyperscalers are currently among the largest issuers in the Investment Grade bond market.

How are you approaching AI as an investment theme?

We are keenly interested in artificial intelligence, but we approach it through a contrarian lens. We focus on financing data centers and the broader electrification value chain—such as companies improving power grid efficiency and end-user electrification—rather than investing directly in AI pure-plays at demanding valuations.
The niche opportunity we have identified centers on funding the early construction phase of data centers: facilities that have already secured power supply and municipal permits. We take on the construction and commercialization risk to capture double-digit returns. We favor this strategy because once constructed and leased, traditional banks move aggressively to refinance the asset. This shortens the investment duration, yielding equity-like returns far faster than usual.
Conversely, we remain hesitant to maintain long-term equity ownership of data centers, as we believe the market severely underestimates the risk of technological obsolescence.

What other long-term investment themes are you developing at Tikehau?

Closely tied to artificial intelligence is decarbonization. I firmly believe that decarbonization is the greatest investment opportunity of our generation.
Looking at IPCC data, achieving Paris Agreement goals requires a collective global investment of roughly $6 trillion annually in decarbonization. 80% of that capital must target transforming existing systems—industry, agriculture, buildings, and transportation—while only 20% should go toward speculative early-stage tech venture capital. The core imperative is transforming legacy infrastructure.
Over the last 12 years, we have built deep expertise investing in electrification solution providers. The only way forward is to electrify the end consumer, which is impossible without a dramatically more efficient power grid. These are low-tech-intensity businesses, yet they are highly profitable and scaling rapidly. We currently manage the largest European private equity fund dedicated to electrification.

Why do you view decarbonization as the most attractive long-term investment opportunity?

Prior to recent geopolitical tensions, decarbonization was viewed as desirable, but carried the stigma that extra-financial returns came at the expense of financial performance. Today, that narrative has completely flipped: geopolitical crises have proved that decarbonization is fundamental to strategic sovereignty.
In Europe, this means breaking reliance on foreign fossil fuels. In China, it reduces dependence on the US dollar for crude oil purchases. Furthermore, if the United States wants to preserve its global leadership in artificial intelligence, it must aggressively decarbonize its energy grid, as scaling emission-free power generation is the only way to solve current electricity bottlenecks.

Yet that appears to clash with political messaging in certain regions…

In practice, Texas is already the largest producer of renewable energy in the United States. Between 2024 and 2025, 94% of new utility-scale power capacity installed across the country was renewable energy. The structural momentum is already underway.
The consequence is that Europe finds itself leading a global movement for once, buoyed by stringent regulatory standards. European solution providers in decarbonization—companies specializing in energy efficiency, resilient supply chains, and industrial processes—have matured rapidly. These are the exact companies Tikehau Capital has backed for over a decade, and we are witnessing their rapid international expansion. This reinforces my conviction: decarbonization is the single greatest investment opportunity of our generation.

Liquidity Needs Make Continuation Funds Shine

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In a context where exits from private equity assets continue to show a complex landscape and appetite for the asset class remains bright, it is no surprise that continuation funds are establishing themselves as a popular liquidity solution in the market.
From being a fringe solution a decade ago, these vehicles have become a more everyday proposition, increasingly popular among asset managers and investors alike. And the figures reflect an expanding market.
Data from Preqin show that continuation funds went from 13 vehicles, with $9 billion in assets in 2018, to 123 closed vehicles globally last year, totaling $75 billion.
One of the ingredients behind this growing popularity is related to liquidity dynamics within the private equity market, which continue to evolve. “While exit activity has improved, driven by some large transactions, overall distribution remains below the historical norm and many investors continue to seek new ways to achieve liquidity solutions,” Schroders noted in a recent report.
Looking ahead, expectations are for momentum to continue, considering that this type of fund is becoming increasingly attractive to GPs.

Growing Interest

A survey conducted by Bain & Company earlier this year showed that 27% of the asset managers surveyed had initiated or completed a continuation vehicle transaction in the last 24 months.
Of this total, 22% involved a single-asset deal, 3% involved multi-asset strategies, and the remaining 2% used a mix of single-asset and multi-asset investments.
Projecting into the future, expectations are even more dynamic. Four out of ten GPs expect to explore one of these transactions within the next one to two years. 24% anticipate making single-asset investments, 5% multi-asset investments, and 11% both.
The drive behind this interest, as outlined in the Bain survey, lies in the search for liquidity. When asked about the strategic reasoning behind continuation deals—both executed and projected—53% pointed to providing liquidity for existing LPs.
The other priorities highlighted were acquiring more capital to use in add-on M&A (42% of respondents) and resetting investment horizons for assets that require a longer holding period (33%).
“It is clear that continuation vehicles are becoming an established part of the liquidity toolkit. Beyond delivering capital to LPs, many GPs are using them to refinance assets and fund mergers and acquisitions for ‘buy-and-build’ strategies,” the consulting firm concluded in its report.

The Importance of the Secondary Market

The boom in continuation vehicles has reinforced the importance of secondary markets. According to Schroders, both LP-driven portfolio sales and continuation investments continue to grow, to the point that 2026 is shaping up to be a new record year for capital raising.
“Continuation investments in particular are becoming an increasingly established feature of the private equity ecosystem. While they continue to benefit from cyclical liquidity needs, our analysis shows that their growth is largely structural, reflecting their ability to retain ownership of high-quality assets with greater upside potential while providing optional liquidity to existing investors,” the firm stated in its report.
All in all, this phenomenon has left its mark on the secondary market. Figures from specialized advisory firm Evercore Private Capital Advisory show that transaction volume in the first half of 2026 exceeded $120 billion.
This represents a 20% increase compared to June 2025 and positions it as the strongest first half on record. Furthermore, they emphasized that these data consolidate the strong results of last year, when annual volume grew by 40% to $226 billion.
It is worth noting that, of the total capital accumulated in secondary transactions this year, the largest share comes from GP-led activity, at $65 billion. In contrast, LP-driven transactions totaled $56 billion.
“Single-asset continuation vehicles represented the largest share of GP-driven activity, concentrated in high-quality assets,” Evercore emphasized in its report.

Diana Rueda Joins The Ranks Of BlackRock

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Photo courtesyDiana Rueda, Director and Market Leader at BlackRock

Deepening her 17-year career in the financial industry, Diana Rueda has joined BlackRock, where she will be based out of Miami. Coming from MFS Investment Management after an eight-year tenure, she steps into the role of Director and Market Leader at the world’s largest asset manager.

According to market sources, her new responsibilities will focus heavily on the Miami wealth management ecosystem—a hub renowned for its strong concentration of Latin American investors. Her primary mandate will center on servicing wirehouses alongside select independent advisory accounts.

Prior to joining BlackRock, Rueda held progressive roles at MFS Investment Management between July 2018 and her recent departure, starting as a Senior Sales Representative before rising to Senior Regional Consultant.

Earlier in her career, she built extensive institutional experience in Colombia, serving as a Sales Trader at BBVA Colombia, Director of International Investments at Alianza Valores SCB, and a Foreign Associate at Citi.

Allfunds Assets Under Administration Surge 21.3%, Driven By Alternative Investments

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Allfunds closed the first half of the year achieving a 21.3% year-over-year growth in its assets under administration. According to its financial figures, platform services reached €1.3 trillion, representing a 23% annual increase, supported by net flows of €51.1 billion during the first six months of the year.

“Having completed the review of our business lines, we are now focused on the disciplined execution of our key strategic priorities: accelerating growth in alternative assets and ETFs, and advancing innovation in tokenization. This renewed focus is yielding strong results, with a 21% growth in assets under administration to €1.9 trillion and a 10% increase in revenue for the half-year. This performance demonstrates the continued commitment of our clients and our ability to translate market opportunities into concrete results,” highlighted Annabel Spring, CEO of Allfunds.

Momentum in Alternatives and Commercial Activity

One of the most significant growth areas recorded by the firm during the first six months of the year corresponds to its alternative asset solutions. Assets under administration within this segment expanded by 54.4% year-over-year, reaching €41.4 billion. Furthermore, distribution in alternative products surged 62% compared to the same period last year, while the number of managers hosted on its alternatives platform grew 32.5% annually to reach 253 entities. Specifically, the firm onboarded 46 new distributors and 94 asset managers during the half-year period.

BlackRock To Offer Access To Select European UCITS Funds Via Tokenized Shares

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BlackRock has announced the launch of its first tokenized fund access offering in Europe through on-chain share classes for select money market funds within the BlackRock Institutional Cash Series (ICS) range. Through this initiative, the asset manager expands blockchain-based capabilities to Europe’s largest liquidity management platform, with the objective of enhancing efficiency, transparency, and accessibility.

To execute this, BlackRock will leverage J.P. Morgan’s Kinexys asset tokenization platform, enabling the new ICS fund share classes to issue digital tokens on the Ethereum blockchain. According to the manager, this framework will allow eligible investors to access tokenized versions of existing liquidity management strategies while preserving the institutional strength and regulatory oversight inherent to money market funds.

“The new tokenized share classes offer several key features, including access to a yield-generating money market fund backed by broad scale and high liquidity. Additional capabilities include the ability to transfer tokens between investors 24 hours a day, 7 days a week, alongside near-real-time visibility and movement of positions on the blockchain. Each token represents an underlying share of an ICS fund, while the official shareholder register will continue to be managed via the fund’s traditional transfer agent infrastructure,” the firm stated.

New Use Cases for Money Market Funds

BlackRock notes that tokenized share classes enable the direct transfer of fund holdings between authorized digital wallets using smart contracts—automated software programs that execute once predefined conditions are met. According to the firm, this technology will unlock new application layers for money market funds, including:

  • Corporate Treasury Optimization: Streamlining liquidity management and capital efficiency.

  • Digital Collateral Management: Facilitating real-time pledge and transfer mechanics.

  • Broadened Distribution Channels: Expanding delivery via banks, wealth management platforms, and digital networks.

  • Financial Ecosystem Integration: Seamlessly embedding liquidity into broader tokenized market structures.

Beccy Milchem, Global Head of Liquidity Distribution and International Cash Management at BlackRock, noted: “This launch represents a major step in the evolution of how investors access and manage their liquidity, while contributing to the modernization of capital markets infrastructure.”

Hannah Winter, Head of Digital Cash at BlackRock, emphasized: “Tokenized money market funds allow high-quality, short-term investments to transition into digital environments while maintaining the exact same standards of capital preservation, liquidity, and risk management.”

Kara Kennedy, Global Head of Market Development at Kinexys by J.P. Morgan, added that “tokenization has moved from concept to execution,” pointing out that tokenizing share classes brings native blockchain functionalities to established institutional products.

Partnership with Kinexys by J.P. Morgan

Kinexys serves as the dedicated blockchain business unit within J.P. Morgan Payments. Its tokenization platform plays a pivotal role in issuing and managing the lifecycle of the tokenized shares, handling critical operations such as token minting and burning.

Furthermore, Kinexys functions as the operational bridge between on-chain activity and the traditional transfer agent infrastructure, ensuring full alignment with existing operational workflows while introducing digital asset functionality.

Latin American Wealth Migration Triggers A “Wave Of Advisors” In US Offshore Business

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Historically, access to high-net-worth and ultra-high-net-worth clients (HNWIs/UHNWIs) in the US Offshore segment was monopolized by traditional private banking. Global institutions such as UBS, J.P. Morgan, Citi Private Bank, and Santander Private Banking controlled both custody and distribution through closed or guided architectures.

However, the ecosystem has shifted radically due to three primary drivers:

  • Proliferation of Independent Advisors (RIAs and Multi-Family Offices): Private banking professionals have migrated en masse toward independent firms in Miami or intermediary platforms (independent broker-dealers), demanding open architecture and products free from parent-company bias.

  • Demand for Private Markets and Liquid Alpha: Clients are no longer satisfied with traditional stock and bond portfolios; they are actively demanding private credit, real estate, infrastructure, and thematic strategies.

  • Fee Pressure: Investors seek to eliminate the double layers of fees associated with traditional private banks, preferring direct relationships or guidance from fee-only advisors.

In light of this landscape, asset managers have chosen not to rely solely on distribution through traditional private banks. In recent months, the deployment of senior sales teams and direct distribution agreements in hubs like Miami has intensified to service US Offshore platforms directly.

This evolution has heightened competition among asset managers, who no longer limit their offerings to traditional funds. The updated product suite incorporates UCITS vehicles, ETFs, private credit, private markets, global fixed income strategies, and solutions tailored specifically for high-net-worth investors with offshore structures.

Within this new paradigm, Miami consolidates its standing as the primary decision-making hub for Latin American wealth and the focal point where major international firms wage an escalating battle to capture the region’s assets.

Implications for Traditional Private Banking

This surge of asset managers poses a direct threat to the margins of the traditional private banking model. While institutions like UBS or Citi attempt to retain assets through their integrated custody and wealth management platforms, they face an increasingly sophisticated client base that is unbundling its services: custody remains with low-cost platforms or independent US custodians (such as Pershing, Charles Schwab, or Fidelity), while investment strategy design is delegated to specialized managers.

For the high-net-worth Latin American client, the result is a significantly broader and more competitive investment offering. Global asset managers compete head-to-head in markets like Miami to design tailored solutions for a capital base that shows no signs of returning to its home markets in the near term.

The ultimate consequence is a fundamental redefinition of the competitive model in the US Offshore business. The contest is no longer fought solely among private banks for asset custody, but between banks and global asset managers for control of the client relationship.

Apollo Chooses Austin, Texas As Its New Hub For Innovation, Talent, And Growth

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Apollo Global Management has announced the opening of a new office in Austin, Texas, aiming to transform the location into a strategic hub for talent, innovation, and long-term business growth. According to the firm, the new office will be led by Eric Needleman and Mike Downing. Despite the expansion, Apollo clarified that New York City will remain the firm’s global headquarters.

“At Apollo and Athene, we help meet the capital needs of businesses and economies while enabling individuals to retire with peace of mind. That mission has driven our innovation for more than three decades, and this new presence continues that DNA. Change is the only constant, and we prefer to lead it rather than react to it. Austin allows us to build the next generation of Apollo and Athene, including challenger models for parts of our own business, leveraging the talent, technology, and business environment that already exist in the region. That is why we chose Austin and Texas,” said Marc Rowan, CEO of Apollo.

According to the firm, the new strategic growth hub will incubate new and emerging businesses across its asset management and retirement solutions platforms, focusing on the product cycle, distribution, infrastructure, and market-making. Additionally, it will serve as the launchpad for evolving the company’s approach to technology and operations, in close proximity to firms shaping the next phase of sector growth.

Greg Abbott, Governor of Texas, stated: “Texas is the financial capital of America. Apollo made the right choice in selecting Texas for its new strategic growth hub. Our state is already home to the largest financial services workforce in the nation, and this major expansion in Austin will cement Texas’ global leadership in the sector. For innovative industry leaders seeking stability, speed, and scalability, there is no better place to invest and grow than Texas.”

Meanwhile, Kirk Watson, Mayor of Austin, highlighted that the city represents an excellent investment for companies due to its abundant supply of young, skilled, and creative talent. “Apollo chose Austin because of our talent, our magnificent natural environment, our rich cultural offerings, and our leadership position in the innovation economy. It is exciting that young Austinites graduating from local universities will have another opportunity to launch their careers right here at home, without needing to move to the East Coast or elsewhere. I am proud that Austin continues to be the destination of choice for companies looking to grow, innovate, and invest,” he noted.

Texas leads the nation in Fortune 500 company headquarters—a base that includes a growing concentration of advanced technology, microchip manufacturing, and defense tech firms alongside the state’s historical leadership in energy and infrastructure. Apollo views this ecosystem as ideal for supporting its next phase of growth and aligning with its vision of an ongoing global industrial renaissance.

Apollo’s new presence strengthens nearly two decades of partnerships in Texas, including strategic organizations that connect companies with the local innovation ecosystem. Texas already ranks among the firm’s top five capital bases, positioning Apollo to deepen relationships with innovative companies seeking long-term capital partners at the forefront of technology and financial services. Notably, Austin provides Apollo with access to a talent profile distinct from its other offices.

Japan’s Labyrinth: Higher Inflation, A Weak Yen, And Tighter Monetary Policy

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The market is seeing a reduction in overweight positions in 10-year Japanese Government Bonds (JGBs), reflecting rising domestic inflation, yen weakness, high energy prices, and the Bank of Japan’s (BoJ) trajectory of gradual monetary policy tightening.

During the first half of 2026, inflation in Japan has remained at moderate levels compared to previous years, hovering below the official 2% target set by the BoJ. In fact, the monetary institution revised its median core CPI estimate downward to 2.5%, compared to the 2.8% previously estimated. Furthermore, the BoJ projects that core inflation will hover around 2.4% in FY27 and 2.0% in FY28, suggesting a progressive anchoring around the official long-term target.

Inflation Management

According to experts, this downward revision is primarily attributed to the temporary effect of government energy subsidies during the summer months, among other measures. “Japan has announced plans to reduce the consumption tax on food from 8% to 1% starting in April 2027, aiming to address cost-of-living concerns amid low public approval regarding inflation management. Although fiscal risks persist, retail and food and beverage companies are the primary beneficiaries,” notes Louis Chua, Asia Equity Analyst at Julius Baer.

In a press conference held on the afternoon of July 27, 2026, Japanese Prime Minister Sanae Takaichi announced that a proposal to reduce the consumption tax will be presented later this week, lowering the tax on food products from 8% to 1%, effective April 2027. To provide context, Chua explains that reducing the food consumption tax is a key campaign promise of the ruling Liberal Democratic Party (LDP), with the cost of living being one of the top concerns among Japanese citizens.

“According to the latest Yomiuri poll, only 21% of respondents approve of the government’s response to high inflation, while 71% disapprove, which may have contributed to the recent downward trend in the government’s approval ratings. A bill to approve the tax cuts will be submitted to the Diet of Japan following the conclusion of bipartisan debates, despite the opposition having previously opposed these cuts,” the Julius Baer expert points out.

Monetary Policy

This concern over the standard of living in Japan leads directly to analyzing the BoJ’s recent moves. Although it kept its policy rate unchanged at its July 30–31 monetary policy meeting, the Outlook Report contained several hawkish elements, such as upward revisions to its real GDP growth forecasts for fiscal years 2026 and 2027. However, Japanese sovereign bond futures experienced a mild bounce following the release of the statement and report. “Overall, markets did not seem convinced that the report provided sufficient justification to price in additional rate hikes,” BofA analysts note.

Nevertheless, they believe that whether markets assign a higher probability to a September rate hike will largely depend on the extent to which the Takaichi administration shows support for further increases. In this regard, the next key catalyst will be the Summary of Opinions, scheduled for publication on August 10, specifically the comments from the Cabinet Office representative attending the meeting.

“Governor Ueda’s statements during the press conference carried a somewhat hawkish tone. His comments, noting that the risk of Japan returning to deflation has diminished and that clear signs of a significant rise in inflation expectations have recently emerged, suggested the possibility of a faster pace of rate hikes. As a result, the market-implied probability of a hike at the September meeting has increased,” stated Tomonobu Yamashita, Interest Rate Strategist at BofA.

Intervention to Curb Yen Weakness

For BofA experts, a key takeaway from this BoJ meeting was that while hawkish elements were present, they were not sufficient to exert renewed downward pressure on USD/JPY after the pair had already been pulled lower by suspected foreign exchange market interventions.

In the view of Shusuke Yamada, FX and Rates Strategist at BofA, the risk of further yen depreciation persists if left unchecked. “If authorities allow USD/JPY to rebound upward, their credibility could be eroded, raising the cost of future interventions down the road. In our view, this is precisely the moment when authorities should firmly push USD/JPY lower and prevent a rapid return to the yen weakness trend. We continue to believe that a consolidated break below ¥155 could alter market dynamics in USD/JPY. Such a move could trigger a broader shift in positioning and flow patterns that have long favored yen weakness. As we see it, authorities should now demonstrate clear resolve to defend the currency,” Yamada argues.

In fact, authorities have already taken action. As explained by Sree Kochugovindan, Senior Economist at Aberdeen Investments, coordinated foreign exchange market interventions were conducted by Japan and the United States to help stem yen weakness. This marks the first coordinated intervention since 2011, which was aimed at curbing yen appreciation following the Great East Japan Earthquake.

“On July 30, at a strategically chosen moment—after the Federal Reserve’s policy meeting and prior to the BoJ’s—Japan’s Ministry of Finance (MoF) carried out an estimated unilateral intervention of between 8.5 and 10 trillion yen, while the Federal Reserve Bank of New York conducted rate checks. This helped spur a sharp, albeit only partially sustained, rally in the yen from multi-decade lows,” she explains. Subsequently, on July 31, Japan sold USD/JPY again, while the New York Fed sold EUR/JPY on behalf of the US Treasury via two US dealers.

In her view, over the short term, the combination of intervention risk, US backing, and a more hawkish BoJ stance increases the likelihood of further short-covering trades in USD/JPY, especially given the high level of speculative short positions on the yen.

“Further appreciation could also ripple across other markets as carry trades are unwound. This was previously observed in the summer of 2024, when a surprise announcement from the BoJ triggered a sharp rise in the yen. For Japanese Government Bonds (JGBs), growing concerns over yen-driven inflation and rising expectations of further BoJ tightening measures should maintain upward pressure on yields, particularly if exchange rate weakness resumes and strengthens the case for an earlier rate hike. However, over the long term, intervention alone is unlikely to reverse the trend without further normalization by the BoJ and narrower rate differentials,” the Aberdeen Investments expert concludes.

The Great Transformation Of The Miami-Texas Corridor, Driven By Latin American Capital

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Historically, the outflow of Latin American capital to the United States was driven by defensive logic. Business owners and high-net-worth families transferred a portion of their wealth to safeguard it from devaluations, inflation, political uncertainty, or the financial crises that periodically hit the region. It was known as flight capital: money seeking refuge. Today, this phenomenon is undergoing a profound shift.

The flow of wealth originating from Latin America—and particularly from Mexico—is no longer driven solely by asset protection. According to the LATAM Family Office Society, business families are establishing permanent structures along the Miami-Texas corridor, turning it into a strategic hub from which they coordinate corporate governance, generational succession, international investments, private asset management, and co-investments alongside other high-net-worth families.

In other words, it is no longer about taking money out of the country, but rather about internationalizing the family business without abandoning its local operations. This shift represents one of the most significant transformations in the Americas’ wealth management and family office market over the past decade. The difference between the two models is substantial.

Whereas in the past a large portion of Latin American wealth arrived in the United States to remain relatively static—deposited in bank accounts, real estate, or financial instruments considered safe—the goal today is different.

Business families are establishing investment vehicles, international holdings, family offices, trusts, private foundations, and corporate governance structures that enable them to manage businesses spread across multiple countries, facilitate wealth succession, and involve new generations in decision-making.

Two US states are essential to these objectives: Texas has established itself as the operational hub for these structures, while Miami continues to serve as the financial and wealth gateway for Latin America.

The combination proves especially attractive to Mexican business owners due to geographic proximity, commercial integration under USMCA, the depth of the US financial system, and a growing ecosystem of specialized advisors catering to large fortunes—though, in reality, entrepreneurs and investors of many nationalities are making their way to these destinations.

The Figures Behind the Expansion and Model Shift

Capgemini’s World Wealth Report 2026 points out that the wealth of high-net-worth individuals (HNWIs) reached a record high of $98 trillion after growing 8.7% during 2025—the largest annual increase since 2018. The global population of HNWIs reached 25.3 million people, nearly two million more than the previous year.

North America once again concentrated a large portion of that expansion. The United States added 736,000 new millionaires during 2025, bringing its HNWI population to 8.7 million, while the segment’s total wealth grew by 9.2%. In contrast, Latin America showed much more modest growth.

Capgemini estimates that the wealth of Latin American high-net-worth individuals grew around 5.1%, while the HNWI population barely increased by 0.3%, reflecting that the region continues to face economic and political uncertainty. Mexico stood out within the regional context, posting a 5.4% increase in high-net-worth wealth and a 1.8% rise in the number of HNWIs.

Texas Is No Longer Just an Industrial Destination

For many years, Texas was viewed primarily as the state for manufacturing plants or US-Mexico trade-related companies; today, its role is quite different.

Houston, Dallas, and Austin have transformed into decision-making centers for Latin American family businesses, wealth planning firms, alternative investment managers, law firms, private banks, and tax advisors. Proximity to Mexico allows daily operations to run smoothly while strategic decisions regarding international investments, succession, or global expansion are made from the United States.

Furthermore, Texas offers an attractive environment due to its regulatory framework, lack of state personal income tax, lower operating costs relative to other US financial centers, and an increasing concentration of specialized talent.

Miami Retains Its Wealth Leadership

While Texas strengthens its corporate profile, Miami retains its position as the primary financial hub for Latin America’s largest fortunes.

The city hosts offices of virtually every major international bank specializing in private banking and wealth management, as well as legal, tax, and fiduciary firms tailored to Latin American clients.

According to the World’s Wealthiest Cities 2025 report by Henley & Partners and New World Wealth, Miami boasts around 38,800 millionaires, consolidating its standing as one of the world’s primary centers for mobile private wealth. The city continues to serve as a meeting point for investors, asset managers, and business families from Mexico, Brazil, Colombia, Argentina, Chile, and other Latin American markets.

Succession Becomes a Priority

One of the less visible drivers behind this transformation is the generational shift; thousands of Latin American family businesses will face wealth and corporate succession processes over the coming decade.

The challenge is no longer simply distributing assets, but preserving companies operating across multiple countries, managing private investments, coordinating different family branches, and preparing the rising generations.

In this context, family offices are evolving into comprehensive platforms capable of combining traditional investments with private assets, infrastructure, private equity, international real estate, and philanthropic strategies.

Wealth sophistication is also reshaping portfolio composition; according to Capgemini, 88% of high-net-worth individuals currently work with more than one wealth management firm, primarily to access opportunities in alternative investments, private markets, and specialized strategies.

This shift explains why Latin American family offices are demonstrating growing interest in private equity funds, private credit, infrastructure, technology, artificial intelligence, and international co-investments—they no longer seek merely to preserve wealth, but to participate directly in its creation.

The transformation of the Miami-Texas corridor reflects a far deeper shift than a simple geographic movement of capital. It represents the evolution of major Latin American fortunes toward an international model in which the family business ceases to be tied to a single country and begins operating through global investment, succession, and corporate governance platforms.

For Mexico, this trend is particularly meaningful. Growing economic integration with the United States, the nearshoring phenomenon, the consolidation of USMCA, and the expansion of business wealth are prompting an increasing number of families to professionalize the administration of their wealth through international structures. It is here that the old concept of flight capital loses its relevance.

In its place emerges a new era in which Latin American wealth does not abandon its home countries, but builds a second platform from the United States to compete in a global market.