A majority of billionaires who accumulated wealth over the past year inherited their fortunes rather than earning it through entrepreneurship, according to a report by Swiss banking group UBS.
A total of $150.8 billion was inherited by 53 heirs over the past 12 months, exceeding the 84 new self-made billionaires’ total of $140.7 billion, the UBS Billionaire Ambitions Report 2023 found.
Younger generations need to be involved in developing succession plans. There is a greater need for consensus. More than ever, families need to discover common values and purpose to navigate a way forward that appeases all generations, said Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management.
In the Middle East, the UAE recorded a notable jump in wealth and became home to more billionaire wealth than other countries in the region, the UBS report said.
Globally, billionaire wealth partially recovered in the 2022-2023 period, lifted by billionaires with consumer and retail businesses in Europe, after falling by almost a fifth in the previous 12 months, the UBS report said.
Total wealth in the EMEA region rose to $2.6 trillion and the number of billionaires grew by more than 10 per cent to 519 from 459.
The Americas continued to have the largest concentration of billionaire wealth, with 867 billionaires accounting for about $5 trillion of wealth.
Billionaire wealth fell in India and expanded at a much slower pace in China, the report found.
The consumer and retail sectors accounted for the biggest increase in billionaire wealth globally, growing at 18.1 per cent to $2.6 trillion over the past 12 months.
Each generation has their own view on legacy, with 68 per cent of billionaires with inherited wealth saying that they aim to continue and grow what their parents achieved in terms of business, brand or assets, according to UBS’s findings.
More than half of the 53 heirs polled are choosing to step away, opting for careers more suited to their own ambitions, skills, and circumstances, according to the report.
There is also a rise in billionaire heirs becoming philanthropists, creating new business ventures, or building on existing ones with a focus on sustainability and philanthropy, UBS said.
