LONDON, Oct. 18, 2022 – It’s an age-old question: how much money do you need to be considered super-wealthy? A new landmark report on the rise of the centi-millionaire reveals that although a handful of the world’s billionaires such as Elon Musk, Mark Zuckerberg, Jeff Bezos, Roman Abramovich, and Bill Gates dominate the news headlines, their wealth cohort is outnumbered nearly 10-to-1 by a fast-growing global elite of highly influential super-wealthy movers and shakers who boast USD 100 million or more in investable assets.
The first global study of the world’s 25,490 centi-millionaires pulls back the curtain on a growing and powerful class of super-rich tech titans, financiers, multinational CEOs, and heirs whose ranks have swelled amid a period of relative global prosperity and market gains — more than doubling in number over the past 20 years — and whose capital accumulation has been dramatically accelerated by the economically and socially disruptive effects of technology and the recent Covid pandemic.
The Centi-Millionaire Report released by international investment migration advisory firm Henley & Partners points out that in the late 1990s, USD 30 million was considered the definition of ‘super wealthy’ but asset prices have risen significantly since then, making USD 100 million the new benchmark.
The USA is home to an astonishing 38% (9,730) of global centi-millionaires, despite constituting only 4% of the world’s total population. The big emerging markets of China and India follow in 2nd and 3rd place, with 2,021 and 1,132 centi-millionaires, respectively. They rank significantly higher than the main European markets, with the UK in 4th place (with 968 centi-millionaires) followed closely by Germany in 5th place (with 966). Switzerland (808), Japan (765), Canada (541), Australia (463), and finally Russia (435) make up the rest of the top 10 countries for centi-millionaires.
According to the report, there appears to be no set path to attaining centi-millionaire status but there are some notable generational differences. While a growing number of younger entrepreneurs who founded successful tech companies are newcomers to the club, Baby Boomers still tend to dominate the centi-millionaire circle despite many now cashing in their stock options and selling their businesses.
As Misha Glenny, financial journalist, author, and contributor to The Centi-Millionaire Report, points out, unsurprisingly, white males over the age of 55 from the US and Europe make up the majority of the cohort, but these demographics are shifting. “At around 57%, the growth of centi-millionaires in Asia will be twice that of Europe and the US over the next decade. Concentrated primarily in China and India, the centi-millionaires in these countries are set to eclipse their European and American peers.”
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. India is next in line with an anticipated 80% growth rate in individuals worth over USD 100 million by 2032. Mauritius has recently emerged as a hot spot for migrating centi-millionaires, with growth of 75% predicted for this business-friendly African island nation. Three other countries on the continent 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 forecast to enjoy exceptional growth.
Commenting in the report, author, financial writer, and global investment expert Jeff Opdyke says a basic tenet of wealth preservation in the 21st century, regardless of wallet size, is diversifying away from the risk of having most or all of one’s assets exposed to a single currency, a single government, and a single legal, taxation, and financial system. “In an era where currencies are burdened by the debts and economic weaknesses of the countries they represent, it doesn’t take much to undermine the status quo. Just look at the British pound. In the span of less than two months, it lost nearly 30% of its value relative to the dollar. That’s a major Western currency. The same can easily happen to the dollar.”
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SOURCE Henley & Partners