This marks a turning point in the dynamics of wealth creation as the great wealth transfer gains momentum. The report, now in its ninth edition, unveils intriguing trends and challenges faced by billionaires globally, shedding light on the evolving landscape of wealth management and succession planning.
The rise of inheritance
For the first time in the report’s history, billionaires have seen a notable shift from self-made wealth to inherited fortunes. 53 heirs have inherited a staggering $150.8 billion over the past year, which is more than the $140.7 billion in wealth that 84 new self-made billionaires have amassed. Benjamin Cavalli, Head of Strategic Clients at UBS Global Wealth Management, predicts a sustained trend over the next two decades, with over 1,000 billionaires passing an estimated $5.2 trillion to their descendants.
Multigenerational perspectives
The report introduces us to a new cohort of multigenerational families, where each generation brings its own unique perspectives on legacy and ambitions. Succession planning now requires sophisticated solutions to accommodate diverse viewpoints and define common values. Founders and their families must innovate, fostering a shared purpose to navigate through challenges and sustain the legacy they’ve built.
Recovering billionaire wealth
Due to organic business growth, billionaire wealth has partially recovered following a post-pandemic dip. Europe’s consumer and retail billionaires played a pivotal role in this resurgence, contributing to a 7% global increase in the number of billionaires from 2,376 to 2,544. Overall, billionaire wealth rebounded by 9%, reaching $12.0 trillion from $11.0 trillion in the previous 12 months.
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The shifting investment landscape
The report highlights the changing investment preferences of billionaires and their heirs. First-generation billionaires express concerns about a potential US recession and geopolitical tensions, while heirs focus on inflationary pressures and the availability of raw materials. Interestingly, 65% of respondents see generative artificial intelligence (AI) as a significant commercial opportunity, with 58% identifying cyber threats as the most substantial risk.
Regional perspectives
The Americas, Europe, the Middle East, Africa (EMEA), and Asia Pacific exhibit distinct trends in billionaire wealth management. The Americas prioritise private equity, foreseeing opportunities in AI, yet remain wary of a potential US recession. EMEA billionaires lean towards developed market bonds and hedge funds, expressing concerns about geopolitical tensions. Meanwhile, Asia Pacific billionaires emphasise AI opportunities and view new technologies disrupting existing business models as their primary risk.
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