In a world where the average person struggles to make ends meet, the ultra-rich are soaring to unprecedented heights of wealth.
The number of individuals with net worths exceeding $30 million—the generally accepted threshold for "ultra-high-net-worth individuals" (UHNWIs)—has skyrocketed.
According to a new report from Capgemini, the number of individuals with net worths exceeding $30 million has increased by nearly 28% since 2016 from 157,000 to 220,000 in 2023.
As the ranks of the ultra-rich swell, so too does the benchmark for what constitutes true wealth.
The days of simply being a millionaire are fading into the rearview mirror. Today, the bar is set much higher, demanding astronomical sums to qualify as truly affluent.
Many newly minted multimillionaires are self-made entrepreneurs, particularly in the technology sector.
They have built their wealth through innovation and risk-taking, often defying traditional paths to success. However, their focus is not solely on wealth preservation but also on continued growth, according to Elias Ghanem, the global head of Capgemini's Research Institute for Financial Services.
An influx of tech-savvy billionaires has reshaped the landscape of wealth accumulation and shifted the priorities of the ultra-rich, Fortune reported.
The increased wealth threshold has far-reaching implications for the behavior and desires of the ultra-rich. Their long-term investment horizons and substantial discretionary wealth enable them to weather short-term market fluctuations, allowing them to take on higher risks in pursuit of greater returns.
Several factors have contributed to the rapid accumulation of wealth among the ultra-rich including the proliferation of new opportunities, from cryptocurrencies and startups to tech investments and entrepreneurship.
The United States has witnessed a particularly pronounced growth in the number of UHNWIs.
Government initiatives to boost domestic manufacturing, such as the CHIPS Act and the Inflation Reduction Act, have also played a crucial role in fueling capital growth.
These policies have spurred significant investments in sectors like semiconductor manufacturing and construction, creating new opportunities for wealth accumulation.
