The U.S. far outpaced the rest of the world in minting millionaires last year, adding 600,000 new millionaires and powering record fortunes at the top, according to a new study by Capgemini.
The U.S. far outpaced the rest of the world in minting millionaires last year, adding 600,000 new millionaires and powering record fortunes at the top, according to a new study.. Their combined fortunes grew to $26.1 trillion, up 7% from 2022. Capgemini defines millionaires as those with investible assets of $1 million or more not including primary residence, collectibles or consumer durables.
The Inside Wealth newsletter by Robert Frank is your weekly guide to high-net-worth investors and the industries that serve them.The big question is whether the wealth boom of the past decade, initially fueled by low interest rates and liquidity, and more recently by Covid-19 pandemic stimulus and, can continue.
Next to North America, Asia-Pacific had the strongest millionaire growth, at 4.8%, followed by Europe with 4%, Latin America at 2.7%, the Middle East at 2.1% and Africa down 0.1%. "Everything is cyclical and because private equity has not done well, it's a good entry point," he said."They figure if they enter now, when it's cheaper, it's a good long-term play."
Ghanem said the most important strategy for firms trying to win more business from the ultra-wealthy is to better understand the clients. Companies may know the financials of their clients, but they rarely understand their family dynamics, psychological risk profiles, investment biases, lifestyles or geographic diversification, he said.