• This article explains who the offshore investors from the United States and Latin America are and what they typically invest in, according to the III Annual Report of the Asset Securitization Sector 2025-2026.
• The content is aimed at asset managers seeking to understand offshore investor preferences to design and offer strategies aligned with those profiles.
• FlexFunds offers an asset securitization program that provides offshore investors with easy access to different investment opportunities. For more information, please don’t hesitate to contact our experts.

The US offshore ecosystem has become one of the most sophisticated environments for international wealth management.

In a global context marked by persistently high interest rates, geopolitical tensions, and greater market volatility, high-net-worth investors—particularly Latin Americans who are not US residents—are prioritizing the preservation, diversification, and growth of their capital through efficient, transparent, and goal-oriented offshore structures.

Who is the offshore investor today?

The contemporary offshore investor is predominantly Latin American, divided between those who reside in their home countries (such as Colombia, Mexico, Chile, Peru, etc.) and those who, although established in the US, maintain offshore structures as a key component of their wealth planning.

This dual profile responds to needs ranging from tax efficiency and estate planning to capital preservation in strong currencies and access to international markets.

These investors value offshore vehicles as tools that allow them to defer taxes, optimize their tax burden, and facilitate cross-border wealth transfer—always under strict regulatory compliance.

They also stand out for an increasing level of sophistication: they are well-informed, demand in-depth analysis, active strategy selection, and highly professional service.

They seek not only returns, but also innovation, control, and tax efficiency as pillars for preserving and projecting their financial legacy.

New portfolio compositions: Liquidity, return, and diversification

“Over the last 12 to 18 months, we have witnessed a structural shift in portfolio construction. The classic balance between investment-grade fixed income and equity funds has given way to more granular models that aim to combine tactical liquidity with sustainable long-term returns,” explained Víctor Silva, Managing Director of LifeInvest Wealth Management, in the III Annual Report of the Asset Securitization Sector 2025-2026.

Vehicles domiciled in Luxembourg and Ireland remain popular due to their solid regulatory frameworks and versatility—particularly in offering products with weekly or monthly liquidity.

However, appetite for less liquid strategies has grown notably among high-net-worth investors, who are seeking exposure to alternative sources of return in a challenging environment.

The rise of alternative investments: A new backbone

One of the strongest current trends is the expansion of alternative investments as a structural component of offshore portfolios.

What was once a complement has now become a central piece for achieving true diversification and access to non-listed economies.

“In private credit, we see strong interest in strategies that capture attractive risk premiums. Direct lending funds, asset-backed lending, real estate financing, and hybrid structures can deliver annual yields of 8% to 12%—depending on the risk profile—while limiting exposure to market volatility,” noted Silva.

This type of credit has established itself as a source of stable passive income, particularly in sectors such as infrastructure and consumer finance, where strong contractual agreements and tangible guarantees provide additional protection.

In parallel, private equity has gained traction as a tool for long-term wealth growth. Offshore investors value the opportunity to participate in expanding private companies or turnaround processes.

Whether through closed-end funds, direct co-investments, or specialized platforms, the expected return (IRR) can exceed the historical 20%, justified by the illiquidity premium and the strategic nature of these investments.

A growing area of interest is private capital linked to artificial intelligence. The rise of generative AI has spurred opportunities in sectors such as healthcare, e-commerce, and industrial automation, attracting investors seeking exponential returns in exchange for embracing the risks inherent to technological innovation.

Overall, alternative investments represent between 20% and 30% of the most advanced portfolios, aligning with personal goals such as sustainability, social impact, or family legacy.

Challenges and opportunities: Regulation, education, and open architecture

The growth of the US offshore market is not without challenges. Compliance with international regulations (FATCA, CRS, KYC/AML) requires constant adaptation, reinforcing transparency as a core value for both advisors and investors.

“In addition, there remains a knowledge gap regarding complex vehicles and alternative strategies. Here, the independent advisor plays a critical role in demystifying structures, liquidity timelines, risks, and costs— contributing to more informed and confident decision-making,” said Silva in the III Annual Report of the Asset Securitization Sector 2025-2026.

The key lies in open architecture: integrating solutions from multiple managers, custodians, and jurisdictions enables the construction of more resilient and personalized portfolios, combining daily liquidity with illiquid alternatives to optimize the risk-return balance.

“At LifeInvest, we see the US Offshore ecosystem as a key hub for global wealth management. Its reliable legal framework, diversity of vehicles, and capacity for innovation position it as a prime destination for high-net-worth investors seeking advanced, efficient, and sustainable solutions,” stated Silva.

If you wish to explore the global asset management industry in more depth, you can download the III Annual Report of the Asset Securitization Sector 2025-2026, prepared by FlexFunds in collaboration with Funds Society.