UHNWI: Who Are The Ultra High Net Worth Individuals?

UHNWI or ultra-high net worth individuals are those individuals who have a minimum net worth of $30 million. This is a category that comprises the richest people across the world and has tremendous control over global wealth. In terms of population, this group remains small. However, it keeps growing by the way these individuals have been pushing their fortunes.

Currently, in 2023, the group comprises 579,625 people on a global basis. It was down by 3.8% from what it was in 2022. The United States has the highest number of UHNWIs across the world by a good margin of 41.6%.

In this article, we will be discussing UHNWI in detail and see how these individuals have a major influence over global wealth.

So, without any more delay, let us get started.

Key Takeaways

• As per Knight Frank’s explanation, people who have an ultra-high net worth are the ones who at least have a net worth of $30 million.
• The United States is home to the maximum number of UHNWIs in the whole world, that too, with a pretty large margin.
• Most of the UHNWIs allocate a big portion of their portfolios to commercial real estate, equities, and bonds. The majority of their riches stem from coming from their first and second home.

Let’s Understand UHNWI

Out of the total number present, the United States is home to the highest number of UHNWIs in the whole world. The total constituting number is 241,253, which is a major margin in comparison to all other countries. After the US, we have Europe in line with 155,996, followed by China, with the number remaining at 150,362.

The United Arab Emirates saw a major growth within 2021 and 2022 of 18.1%. As per the predictions of Knight Frank, the total rank of the ultra-wealthy individuals is going to grow by a total of 85%. This means that by 2027, the number would reach from 579,625 to 744,812.

Within 2027, Hungary will be experiencing the maximum growth of 74.4%, following which we have Turkey in line with 69.1%. However, no one will be able to top the United States. Here, the number of super-rich individuals would add up by 24.6% within 2027.

Over 86% of the total UHNWI wealth is acquired by people who are fifty years and above. The majority of them are men. There are only 10.8% of women who have made it to the list. However, when you consider the number under the 50-year benchmark, the number is continuously rising. Women constitute 13.9% in comparison to 10.2% of men under 50 years of age.

“Ultra-high net worth is generally quoted in terms of combined net assets over a certain figure. While $30 million is typically the number used, the exact amount can differ depending on who defines it, the region the person lives in, and when the term is used.”

Example Of UHNWI

Most of the super-rich people in the world are self-made individuals. This becomes very evident every time Forbes publishes its well-reputed richest people list. On their World’s Real-Time Billionaires List, Forbes ranks the everyday net worth on its platform for tracking wealth. As per the website, “[The list] reflects changes since 5 pm EST of [the] prior trading day.”

As per the Real Time Billionaire List, we expectingly have Elon Musk right on top with a net worth of $254.7 billion. He is then followed by:

• Bernard Arnault and family with $201.0 billion
• Jeff Bezos with $175.6 billion
• Larry Ellison with $136.4 billion
• Mark Zuckerberg with $126 billion

Among the other billionaires, we have individuals like Bill Gates, Larry Page, Warren Buffet, and so on. As per the reports of Forbes, the total number of billionaires in 2023 is 2,640. This number will definitely see an increase in 2024. There is a prediction that some of the billionaires may even enter the trillionaire list as well.

How Does A UHNWI Invest?

While you may think that these super-rich people have their money sitting in money market accounts, certificates of deposits, a 401(k), or mutual funds, you are wrong. These are for people who wish to grow their money. Once it has grown, there is no need for them to keep their hard-earned funds in these places.

The most common places where these individuals may store their funds are:

• Their first or second homes
• Bonds and stocks
• Private equity and venture capital

Most of the UHNWIs prefer investing in properties on average. They allocate at least 21% of their total wealth for the purpose of property investment. The most preferable properties where they invest in are office buildings or residential properties.

While publishing its billionaire list in 2023, Forbes particularly mentioned that all these billionaires had suffered losses and witnessed a lack of growth in 2023.

What Defines The UHNWI?

Net worth is the combination of all the assets that an individual owns. The amount that one would require in order to reach this benchmark would fluctuate depending on the number of people who become billionaires and millionaires in the upcoming years. For now, the benchmark remains at $30 million.

How Many People Have Their Names In The UHNWI List? 

To date, there are a total of 529,625 individuals who have a net worth of more than $30 million. Because we have more billionaires now than ever, the best source to get information on the UHNWI is the Forbes Billionaires List.

What Percentage Of The Population In The United States Has $2 Million?

There are different surveys which offer different results. However, the 2021 survey of the Census Bureau of the United States reports that at least one in ten households in the United States has a net more than $1.41 million net worth.

The Bottom Line

UHNWI are those individuals who have a net worth of more than 30 million US dollars. This can be measured by combining the total value of all their assets. Not just the physical or investable assets.

At present, hundreds of thousands of people have met the criteria to achieve the UHNWI tag. However, there is a chance that the benchmark might change with a change in the total number of millionaires and billionaires present in the world.

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