Very few imagined at the start of Covid-19 that we would experience the valley shaped recovery that saw many economies back to pre-pandemic levels by the end of 2021.
However, the world has seen a seismic shift in wealth creation, resulting in the drastic expansion of an existing class of Ultra-High-Net-Worth-Individual, the Centi-Millionaire.
What is a Centi-Millionaire?
A centi-millionaire is an individual of affluence with access to means, who doesn’t need to worry about money and can spend with almost limitless potential. In reality, the level of wealth they have attained means, they are unlikely to worry about money again. A Centi-millionaire is an
ultra-high-net-worth individual who boasts $100 million or more in investable assets.
The strangest thing about this group of individuals is, their growth and existence is not in the likely locations one would expect such as Italy, Germany the UK or Switzerland. This group of wealthy titans has grown exponentially into what would be traditionally referred to as emerging
markets. China, India, Kenya and Malta are amongst the top tiers, Bluxe Century have recently published a private report on Wealth within Emerging Markets which highlights the US having the highest reported number of Centi-millionaires at 9,750 with the next two top tiers coming from China at 2,025 and India at 1,130, this has proven to have had an ongoing impact to the entire high-net-worth world of millionaires as these two combined markets make up the largest population of millionaires on the planet. The United Kingdom takes 4th place (969 Centi-millionaires) followed very closely by Germany in 5th place (964 Centi-millionaires) and Switzerland ranking 6th on the list (807 Centi-millionaires).
In Knight Frank's recent wealth report, they have predicted that between 2021 and 2026, the global UHNWI population will grow by a further 28%over the ten years to 2026. This represents a more than doubling in the number of global UHNWI – from 348,355 to 783,671.
How has this wealth been accumulated?
Although there is no real set path to attaining Centi-millionaire status; many have inherited their wealth, others worked their way up to attaining the $100 million mark. Over the last two years there is a growing number of younger entrepreneurs who have founded successful tech
companies. Whilst baby boomers still tend to dominate the Centi-millionaire circle despite many now cashing in their stock options and selling their businesses.
The face of wealth
Unsurprisingly, white males over the age of 55 from the US and Europe make up the majority, but these demographics are shifting. Predictions on the rise of wealth in emerging markets have been made by many organisations, Bluxe Century has a measurable impact in this area and a focus on this demographic. Asia is predicted to rise to 57% which is twice that of Europe and the US over the next decade. The dominant concentration is primarily in China and India, the Centi-millionaires in these countries are set to eclipse Europe and the US.
What is driving demand?
There are many factors helping to drive demand, these include digital currency, block chain and tech. More than 5 million new millionaires were created in 2021, investing into new areas. However, due to the slowing down of consumer spending of the pandemic, rerouting of funds to invest wealth, lead to wealth creation into more traditional avenues of the stock market and real estate.
Booming markets for Centi-millionaires
The fastest growing market for Centi-millionaires over the next decade is forecast to be Vietnam, with an astonishing 95% growth rate predicted for this emerging Asian manufacturing hub, with strong growth expected in the real estate, technology, and financial services sectors.
India is next in line with an anticipated 80% growth rate in individuals worth over $100 million by 2032. Mauritius has recently emerged as a hot spot for migrating Centi-millionaires, with growth of 75% predicted for this safe, business-friendly African island nation.
Three other countries in Africa make it into the top league of fastest growing Centi-millionaire markets in the next decade:
Rwanda (70%), Uganda (65%), and Kenya (55%) — with New Zealand (72%) and
Australia (60%) also set to enjoy exceptional growth.
Are there other wealth trends?
Another trend identified in the Bluxe Century report entitled Wealth within Emerging Markets is, the emergence of the family office, an increasing fixture in the world of generational and family wealth. Designed to increase flexibility and enhance control that families wish to exert with their capital. This often increases focus, reduces cost and allows them to develop a more open approach to the non-traditional IRR driven investment models.
Compared to hedge funds, pension funds, endowments, and other institutions, family offices are not pooling third-party capital and then investing, they invest money directly on behalf of the ultimate principal.
Typically family offices have three formats Virtual Family Office, Multi Family Office, or Single Family Office, all as wide and varied in source, size, structure, and strategy; as the individuals whose money is being managed. Family offices typically range from a few hundred million dollars under management through to multiple billions. The structure can include fully-fledged investment advisors that would rival the most institutional of firms to just one cited individual advisor.
It is clear to see that the world of wealth and the growth of new markets is happening rapidly and is set to reach new heights and touch new shores over the next two decades. Bluxe Century is focused on recording and reporting these new phenomenon as we approach a vast new frontier
in an ever-changing world.
Bluxe Century are focused on Africa, Asia and the UAE and understand the vast opportunities held within these markets, we help businesses understand how to best engage in these markets and create additional transparency helping to identify repuatable organisations and individuals for success.
By Joseph Farodoye
Chief Thinker/ Founder
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