Tag Archives: Knight Frank

Trends among the Ultra High Net Worth Individuals that will shape Global attitudes

There are 170K+ individuals in the world who have more than $30 Million in net worth according to the Knight Frank report on UHNWI. They own a total of over $20 Trillion in wealth. That’s a staggering 25% of all wealth in the world. Owned by less than 0.00001% of the population. By 2025, the number of UHNWI is expected to be at 230K.

Over 82% of these people had their wealth increase over the last year (2014) and over 80% expect it to increase the next year as well.

The biggest concern about their ability to generate more wealth (as if that’s needed) was family succession issues.

What does their asset allocation look like? 45% in equities (stocks), 10% in home (property) and rest in other assets (cash, gold, art, etc.)

Where are these UHNWI located? 45K in the US, 60K in Europe, Latin America has about 10K and Asia the rest at about 40K+.

Surprisingly only 40% were inherited wealth. The rest made money via entrepreneurial means – real estate and “other business” were the top professions. Technology UHNWI were less than 5% of the total.

The other surprising part of the equation is that there are 1844 billionaires, 38K $100+ Millionaires and over $172K UHNWI. Over 17 Million people are merely millionaires. Turns out the millionaires are the new lower middle class.

As the “poor” become “richer” the “rich” get “wealthy”. There is a direct correlation between the increasing middle-class, their aspirations and the wealth of the UHNWI.

The most important cities where you should look for UHNWI – London, New York, Hong Kong and Singapore top the list, San Francisco is in the top 20, and Mumbai is the only Indian city in the top 50.

The air traffic information from private jets is another interesting story within the story. The top 10 routes for private jets are mostly from and to the US, but the fastest growing are mostly to the US from other places. Meaning even if wealth is created elsewhere, most end up in the Americas – to invest, to hang out, etc.

Where are they going to and where are they coming from? They are going from China, India to the UK and Singapore.

So where’ the money – Chinese investing in Miami, commercial properties in New York and London.

The Indians are investing in Europe more – London, Zurich (not a surprise here).

If you are an entrepreneur looking to raise funding from UHNWI, you should expect to meet with their adviser than with them directly apparently. Most of the UHNWI prefer to work on their own business and spend less time mentoring or guiding anyone but their own kids.

Overall it is a very interesting report. Worth a long plane ride read.