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For those who work in the wealth industry, the definition of what makes an ultra-high-net worth individual — UHNW in industry parlance, super-rich to the rest of us — is changing. As the earnings of people who work in sectors such as technology and entrepreneurship has risen, so has “the bar for what it means to be ultra-wealthy”, says David Gibson-Moore, president of consultancy Gulf Analytica in an interview with the FT.
Possessing at least $30mn — one established measure — “doesn’t carry the same weight or exclusivity it once did”, Gibson-Moore added. “The ultra-rich today are being measured by new standards, with some financial commentators now suggesting $100mn is the new yardstick for anyone who wants to keep their head held high at private equity parties.”
Charlie Wells, managing director of the high-end estate agent Prime Purchase, agrees: “Forty years ago, a millionaire with a Rolls-Royce may have been the epitome of wealth. But, thanks to inflation, the numbers are constantly growing. Only recently, someone worth £20mn-plus would have been considered very wealthy but now you need £50mn-plus to be truly UHNW.”
It’s also due to a jump in wealth creation: data from consulting group Capgemini shows that since 2016 the number of individuals with $30mn has increased by more than a third. Cryptocurrencies and NFTs have added their own complexities.
So how would you define being super-rich: $10mn? $30mn? $100mn? Tell us your views by voting in our reader poll or commenting below the line.
https://www.ft.com/content/5bbe2542-7eca-474e-9c12-6d4f0cfa1279
