Global high-net-worth wealth is back on the upswing, according to the Capgemini Research Institute’s World Wealth Report 2024. After last year’s report shared its highest declines in a decade, high-net-worth individuals (HNWIs) bounced back in 2023 from the year prior with a 4.7% gain worth $3.8 trillion.
North America saw the strongest HNWI recovery in 2023 with a 7.2% increase over 2022. Wealth jumps for HNWIs in other regions included the Asia-Pacific (4.2%), Europe (3.9%), the Middle East (2.9%) and Latin America (2.3%). HNWI wealth in Africa dropped 1% in 2023, making it the only region with a decrease from 2022.
The new report also found that 77% of ultra-high-net-worth individuals (UHNWIs) rely on their wealth management firm to support their generational wealth transfer needs, as Cerulli Associates has projected that $84 trillion in U.S. wealth will be transferred through 2045. Capgemini found 78% of UHNWIs consider value-added services — such as investment management, tax planning, philanthropy, concierge services, passion investments and networking opportunities — to be essential.
Cagemini’s research defines high-net-worth individuals as those with investable assets of $1 million or more, excluding their primary residence, collectibles, consumables and consumer durables. Ultra-high-net-worth individuals are considered to have $30 million or more in investable assets.