And billionaire heirs are more likely than their parents to focus on the major opportunities and challenges facing the global economy, investing in sectors such as clean energy and artificial intelligence, the Swiss lender said in a report Thursday.
“The great wealth transfer is gaining significant momentum as many billionaire entrepreneurs age,” Benjamin Cavalli, who oversees strategic clients in the global wealth management unit at UBS, told reporters
“This is a theme we expect to see more of over the next 20 years as more than 1,000 billionaires pass an estimated $5.2 trillion to their children.”
UBS (UBS), which counts half the world’s billionaires as clients, found that $150.8 billion was inherited by 53 heirs over the 12 months to April, exceeding the $140.7 billion accumulated by 84 new self-made billionaires over that period.
Overall, the number of billionaires globally climbed 7% to 2,544. Their combined wealth rose 9% to $12 trillion, before taking inflation into account.
That total remains below a peak of $13.4 trillion reached in 2021, when the global billionaire community grew to 2,686 individuals following a post-pandemic rally in assets such as stocks and property.
The report’s findings also reflect the subdued state of the IPO market through 2022 and early 2023, which limited the opportunities for entrepreneurs to list their businesses and so increase their wealth.
“Economic, geopolitical and policy uncertainty have been a challenge to entrepreneurial wealth creation of late,” said Max Kunkel, chief investment officer for family and institutional wealth management clients at UBS.