Among the new billionaires that emerged last year, for the first time, the assets of the inherited group were larger than those of the self-made group.
This is the result stated in the "Billionaire Ambitions Report" of UBS Bank (Switzerland). The report assesses the transfer of most of the assets of billionaires, which has been predicted for a long time, but this year has begun to witness the trend gaining momentum.
Of the 137 new billionaires who emerged last year, 53 received $150.8 billion through wealth transfers. The remaining 84 self-made billionaires accumulated $140.7 billion. This is the first time in eight reports in nearly a decade that new billionaires have more money from inheritance.
The importance of wealth transfer is growing across all geographies. In Asia-Pacific, the median wealth of heirs is $2 billion, compared with $1.6 billion for self-made billionaires. In the Americas, heirs have a median wealth of $2.2 billion, compared with $1.5 billion for self-made billionaires. In Europe, the Middle East and Africa, the median wealth of heirs is $4.4 billion, double that of self-made billionaires ($2.2 billion).
The sluggish IPO market throughout 2022 and early 2023 has also limited the chances of some entrepreneurs becoming self-made billionaires. Max Kunkel, chief investment officer for family offices and institutional clients at UBS, said economic, geopolitical and policy uncertainty have been challenges to corporate wealth creation in recent times.
The family of billionaire Bernard Arnault, Chairman of LVMH. From left to right: Alexandre Arnault, Frédéric Arnault, Jean Arnault, Hélène Mercier-Arnault, Bernard Arnault, Delphine Arnault, Antoine Arnault, Bernard Arnault's niece and nephew. Photo: Guillaume Herbaut
UBS estimates that a total of 1,000 billionaires will transfer $5.2 trillion of their wealth to their children over the next few decades. “Wealth transfers are gaining momentum as many billionaire entrepreneurs age,” explains Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management. The average billionaire is 67 years old, according to a May report from information services Altara. As a result, more and more people are thinking about what will happen to their assets when they die.
A UBS survey found that three-fifths of first-generation billionaires said their biggest concern was passing on the values, education and experience needed to take over to their children. “The main problem with the younger generation is educating them to be ambitious,” one billionaire told the UBS survey team.
The number of billionaires worldwide rose 7% to 2,544 last year. Their combined wealth increased 9% to $12 trillion, before adjusting for inflation. That’s still below the $13.4 trillion peak reached in 2021, when the global billionaire community grew to 2,686 individuals, helped by a post-pandemic recovery in stocks and real estate.
Europe led the growth in billionaire wealth for the first time as a post-pandemic surge in spending lifted the profits and share prices of French luxury companies, benefiting the billionaire families behind them. Among them are LVMH chairman Bernard Arnault and his five children. Arnault is the world’s third-richest person with a net worth of $167 billion, according to the Bloomberg Billionaires Index.
While tech and healthcare billionaires have amassed the most wealth over the past decade, the report highlights the trend of industrial billionaires, notably India’s Gautam Adani of Adani Group and Mukesh Ambani of Reliance. “This could continue as governments in some countries encourage energy transitions and higher defense spending,” the report predicts.
Phien An ( according to CNN, Fortune )
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