In a significant shift highlighted by the latest UBS Billionaire Ambitions Report, it has been revealed that billionaires across the globe are increasingly accumulating Billionaire Wealth through inheritance rather than entrepreneurship. This trend marks a pivotal moment as, for the first time in nine editions of the report, the majority of the ultra-rich have inherited more wealth than they have earned through entrepreneurial endeavors. This phenomenon signals the commencement of a monumental wealth transfer, with an estimated $68 trillion expected to change hands across generations.
The report, which surveyed UBS’ billionaire clients worldwide, underscores the emergence of a “new cohort of multigenerational families” shaping the landscape of wealth accumulation. It points to the need for sophisticated succession planning solutions as a growing number of billionaires inherit substantial fortunes. Benjamin Cavalli, Head of Strategic Clients at UBS Global Wealth Management, anticipates that the role of inheritance in wealth composition will persist over the next two decades, as over 1,000 billionaires are projected to pass on approximately US$4.2 trillion to their heirs.
The data reveals that 53 billionaire heirs inherited over $150 billion in the past year, surpassing the combined wealth of 84 new self-made billionaires, which totaled $140.7 billion. As the great wealth transfer unfolds, each generation exhibits distinct perspectives on legacy. Sixty-eight percent of respondents with inherited wealth express their intention to continue and expand the family business, brand, or assets received from the prior generation. Additionally, 60 percent of heirs aim to enable future generations to benefit from their wealth, while 32 percent plan to uphold their parents’ predefined philanthropic goals.
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However, heirs are cognizant of the evolving economic landscape and express a desire to focus on contemporary opportunities and challenges. This includes venturing into innovative technologies, participating in the clean-energy transformation, and engaging in impact investing.
The report sheds light on the investment strategies of billionaires, highlighting that 43 percent of first-generation billionaires plan to increase allocations to private debt in the next year. Furthermore, 38 percent intend to add to their holdings in developed-market bonds. In contrast, heirs exhibit a stronger inclination toward private equity, with 59 percent expressing a desire to raise direct private equity investments, and 55 percent looking to invest more in private equity funds.
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As the wealth transfer unfolds, a notable theme emerges among billionaire heirs — a strong entrepreneurial spirit. More than half of the 53 heirs surveyed are opting to pursue careers aligned with their personal ambitions, skills, and circumstances, choosing paths divergent from assuming roles in the family business. This trend signifies a shift in the aspirations and choices of the next generation of the world’s wealthiest individuals.
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