Billionaire Wealth Shift: A seismic shift in billionaire wealth dynamics is unfolding, with inheritance surpassing entrepreneurship for the first time, according to the UBS Billionaire Ambitions Report 2023. Of the $291.5 billion amassed by new billionaires in the survey, an unprecedented $150.8 billion came through inheritance, while $140.7 billion was generated by self-made billionaires.
This trend marks a departure from the past three decades, which saw a surge in the number of billionaire entrepreneurs. The report anticipates that over the next 20 to 30 years, more than 1,000 billionaires will pass on a staggering $5.2 trillion in wealth to their heirs.
The global billionaire landscape expanded by 7% this year, totaling 2,544 individuals, with mainland China contributing significantly, accounting for nearly half of the new billionaires. In 2023, 157 new billionaires emerged, a substantial increase from the 35 in 2022 but still below the peak of 416 in 2021. Notably, the number of new self-made billionaires (84) exceeded those who inherited their wealth (53), signaling a narrowing gap compared to previous years.
While a growing number of billionaires inherit their fortunes, the report dispels the notion that they uniformly assume leadership roles in family businesses. Only 43% of billionaire heirs worldwide took positions in family companies, with the majority opting for independent career paths.
Read More: Billionaire Landscape Shifts: Inherited Wealth Surpasses Self-Made Fortunes
Billionaire heirs focusing on private equity signaled a shift in investment preferences, with 59% aiming to increase allocations to direct private equity investments and 55% looking to invest more in private equity funds. In contrast, self-made billionaires displayed a preference for fixed-income investments, with 43% planning to boost allocations to private debt.
Philanthropy emerged as a crucial aspect of billionaire legacies, with 68% of first-generation billionaires emphasizing philanthropic goals as a primary objective. In contrast, only 32% of those inheriting fortunes shared the same sentiment, suggesting a nuanced approach to wealth and giving.
The UBS report sheds light on the evolving landscape of billionaire wealth, where the dynamics of inheritance and entrepreneurship intersect in shaping the future of the global billionaire class. As the wealth transition unfolds, billionaires grapple with decisions regarding family legacies, business stewardship, and the broader impact of their fortunes on society.
Our Reader’s Queries
Are billionaires self made or inherited?
Did you know that 38% of the wealthiest individuals in the US come from middle-class or upper-middle-class backgrounds? This includes seven out of the top ten richest people in the country. Shockingly, almost 80% of The Forbes 400 either inherited their wealth or grew up in at least a middle-class household. It’s clear that the American dream of rags to riches is not as common as we may think.
How many billionaires are there in the world in 2023?
According to the UBS Billionaires Ambition Report, the number of billionaires worldwide increased by 7% over the past year, reaching a total of 2,544 by April 6, 2023. This marks a significant rise from the previous year’s figure of 2,376. The report highlights the continued growth of wealth among the world’s elite, despite ongoing economic challenges.
Which ethnicity has the most billionaires?
Over the past six months, the Forbes’ Real-Time Billionaires List has seen a decrease of 245 individuals. Interestingly, 126 of those individuals were from Asia, while only 27 were from North America. This highlights the growing influence and success of Asian billionaires in the global economy.
What is the greatest transfer of wealth?
You may have come across the term great wealth transfer which refers to the $72 trillion worth of assets that baby boomers are expected to pass on to millennials. This transfer of wealth is anticipated to alleviate some of the financial struggles faced by the younger generation.