Latest news with #KartikRamakrishnan
The Hill
4 days ago
- Business
- The Hill
US gained 562K millionaires in 2024, far outpacing other countries
A strong stock market helped mint 562,000 new millionaires in the U.S. last year, according to a new report. The nation's high-net-worth population grew by 7.6 percent to 7.9 million in 2024, far outpacing the 2.6 percent global rise, Capgemini's World Wealth Report 2025 shows. That domestic surge helped push the number of millionaires worldwide to a record 23.4 million. High-net-worth individuals (HNWIs), defined as those with $1 million or more in investable assets, benefited from double-digit returns in the U.S. stock market, resilience fueled by stronger-than-expected economic growth and sustained enthusiasm for artificial intelligence and tech stocks. It was also a year of wealth concentration, with the ultra-rich emerging as the clear winners. Globally, the number of so-called 'millionaires next door' — individuals worth between $1 million and $5 million — grew by 2.4 percent. Meanwhile, the ultrawealthy population — those with investable assets of $30 million or more — grew more than twice as much, at 6.2 percent. 'Ultra-HNWIs remained resilient during market volatility with greater exposure to high-growth opportunities, whereas Millionaires Next Door focused on safer, low-yield opportunities like fixed-income and real estate,' the report reads. The wealthy continue to favor traditional investments like real estate, stocks and fixed income assets, but alternative investments like currencies, private equity and digital assets have gained traction in recent years. As of January 2025, HNWI investors parked 15 percent of their portfolios in alternative investments, including private equity and cryptocurrencies, up from just 9 percent in 2018. The report also highlighted the looming 'great wealth transfer,' with older generations expected to pass on an estimated $83.5 trillion to Gen X, millennials and Gen Z by 2048. Within the next decade, women are projected to receive a significant share of that wealth. The massive transfer presents an opportunity for wealth managers but also considerable risk, Capgemini warned. 'The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents,' Kartik Ramakrishnan, CEO of Capgemini's Financial Services Strategic Business Unit and Group Executive Board Member, said in a release. Ramakrishnan urged wealth management firms to shift away from 'traditional strategies' and equip advisors with digital capabilities, 'potentially augmented with agentic or generative AI.' Outside the U.S., India and Japan were standouts, with both countries registering 5.6 percent growth, adding 20,000 and 210,000 millionaires last year. Meanwhile, China's HNWI population declined by 1 percent. In Europe, the high-net-worth population also declined by 2.1 percent, primarily due to economic stagnation in major countries such as the United Kingdom and Germany. The number of high-net-worth individuals shrank in the Middle East and Latin America too.
Yahoo
5 days ago
- Business
- Yahoo
US gained 562K millionaires in 2024, far outpacing other countries
(NewsNation) — A strong stock market helped mint 562,000 new millionaires in the U.S. last year, according to a new report. The nation's high-net-worth population grew by 7.6% to 7.9 million in 2024, far outpacing the 2.6% global rise, Capgemini's World Wealth Report 2025 shows. That domestic surge helped push the number of millionaires worldwide to a record 23.4 million. High-net-worth individuals (HNWIs), defined as those with $1 million or more in investable assets, benefited from double-digit returns in the U.S. stock market, resilience fueled by stronger-than-expected economic growth and sustained enthusiasm for AI and tech stocks. The net worth of richest Congress members It was also a year of wealth concentration, with the ultra-rich emerging as the clear winners. Globally, the number of so-called 'millionaires next door' — individuals worth between $1 million and $5 million — grew by 2.4%. Meanwhile, the ultrawealthy population — those with investable assets of $30 million or more — grew more than twice as much, at 6.2%. 'Ultra-HNWIs remained resilient during market volatility with greater exposure to high-growth opportunities, whereas Millionaires Next Door focused on safer, low-yield opportunities like fixed-income and real estate,' the report said. The wealthy continue to favor traditional investments like real estate, stocks and fixed income assets, but alternative investments like currencies, private equity and digital assets have gained traction in recent years. Growing number of Americans say tipping culture is 'out of control' As of January 2025, HNWI investors parked 15% of their portfolios in alternative investments, including private equity and cryptocurrencies, up from just 9% in 2018. The report also highlighted the looming 'great wealth transfer,' with older generations expected to pass on an estimated $83.5 trillion to Gen X, millennials and Gen Z by 2048. Within the next decade, women are projected to receive a significant share of that wealth. The massive wealth transfer presents an opportunity for wealth managers but also considerable risk, Capgemini warned. 'The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents,' Kartik Ramakrishnan, CEO of Capgemini's Financial Services Strategic Business Unit and Group Executive Board Member, said in a release. Ramakrishnan urged wealth management firms to shift away from 'traditional strategies' and equip advisors with digital capabilities, 'potentially augmented with agentic or generative AI.' Outside the U.S., India and Japan were standouts, with both countries registering 5.6% growth, adding 20,000 and 210,000 millionaires last year. Meanwhile, China's HNWI population declined by 1%. In Europe, the high-net-worth population also declined by 2.1%, primarily due to economic stagnation in major countries such as the United Kingdom and Germany. The number of high-net-worth individuals shrank in the Middle East and Latin America too. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
5 days ago
- Business
- Yahoo
The U.S. minted more than 560,000 new millionaires in 2024, far outpacing other countries
Last year was a banner year for the rich—at least for those based in the U.S. Thanks to a favorable interest rate environment and booming domestic stock market, the population of high-net-worth, or HNW, individuals grew significantly in North America in 2024, while the same population fell across Europe, Latin America, and the Middle East. That's according to the Capgemini Research Institute's World Wealth Report 2025, published Wednesday. The global population of HNW individuals—those with at least $1 million in investable assets outside of their primary residences—rose by 2.6% last year, while the number of ultra-high-net-worth, UHNW, individuals—those with at least $30 million liquid—grew by 6.2%. In the U.S., the HNW population rose almost triple that amount, by 7.6%, and 562,000 new millionaires were minted in 2024. The surge is thanks largely to 2024's strong stock market returns, which was powered in particular by optimism over artificial intelligence stocks, according to the report. Asian countries including India and Japan also had standout years, with their HNW populations each growing by 5.6%. Europe, meanwhile saw its HNW population decline by just over 2% due to economic stagnation. But even that doesn't tell the whole story. While countries like the United Kingdom, France, and Germany lost tens of thousands of millionaires each, they also saw their UHNW population surge 3.5%. That reflects the increasing concentration of wealth countries around the world around experiencing. Alternative investments including private equity and cryptocurrencies are an 'established presence' in HNWI portfolios, according to the report, comprising 15% of holdings. Things could look a little different this year, thanks to a volatile stock market stemming from President Donald Trump's shifting trade policies. While wealthy investors often have the cash on hand to ride out any prolonged periods of volatility, the same can't be said for the average investor. Capgemini's report also details the coming $83.5 trillion great wealth transfer, which it says will happen in three main stages: 30% of HNW individuals will receive an inheritance in the next five years, 63% will by the end of the next decade, and 84% will by 2040. That will create the next generation of HNW investors, who may have different priorities and investment interests than the current wealth holders. 'The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents,' said Kartik Ramakrishnan, CEO of Capgemini's Financial Services Strategic Business Unit, in a press release. 'This necessitates an urgent shift away from traditional strategies to effectively cater to their evolving needs on this wealth journey.' The report points to that 15% allocation to alternative investments as one example. And that may actually be on the low end of the UHNW investor spectrum: A recent report from UBS found that family offices, managing an average net worth of $2.7 billion, have allocated 21% of their portfolios to private markets, on average. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
5 days ago
- Business
- CNBC
Wealthy inheritors plan to fire their parents' wealth advisors
The $100 trillion wealth transfer from older to younger generations is set to reshape the wealth management industry, as younger investors plan to move their money to new advisors, according to a new report. A new survey from Capgemini shows that 81% of "next generation millionaires," or those set to inherit large wealth from their families, plan to replace their parents' wealth management firms. Most cited poor digital offerings or a lack of services and products. "We were staggered when our research came back with that number," said Kartik Ramakrishnan, CEO of financial services at Capgemini. "What that generation looks for is different from what that previous generations have looked for." Understanding the next generation of inheritors will become increasingly critical to wealth managers as a historic transfer of wealth gets underway. According to Cerulli Associates, more than $100 trillion is expected to flow from baby boomers and older generations to heirs and spouses. A majority of the transfers (over $60 trillion) will come from millionaires and billionaires, representing the top 2% of households by wealth. And most of the flows will be in the U.S. The firms that can best attract, retain and cater to the future of wealth will be best positioned for the future. More than two-thirds of wealth-management executives surveyed by Capgemini said they were focused on engaging the next generations. Yet the gap remains wide. A majority (58%) of executives surveyed admitted it was "challenging" to build relationships with the next gen. Beyond age differences, the new breed of inherited wealth (those born between 1965 and 2012) are dramatically different from boomers when it comes to investing, priorities and lifestyles. Here are five of the top priorities of the next generation and how wealth managers can best adapt: Young investors traditionally take more risk, given their timelines and age. Yet even adjusted for age, millennials and Gen Zers like to live further out on the risk curve, with meme stocks, stock options, cryptocurrencies and other more speculative asset classes. While the chief goal for wealthy boomers is wealth preservation, the next gen seeks aggressive growth, according to the Capgemini survey. The flood of online investing videos and explainers have also given younger investors more confidence taking risk. "It's a combination of both age, risk propensity and awareness," Ramakrishnan said. "It's the ability to find out more, to learn more, to get better knowledge of how they could invest." While older investors lean toward stocks and bonds, younger investors want more crypto, private equity and overseas investments. Fully 88% of investors say the next gen has more interest in private equity than baby boomers. Capgemini said younger investors believe strong returns can no longer be driven by just stocks and bonds, and that private equity and other alternatives can provide better long-term growth. Private equity is also becoming more widely available through lower minimums and third-party asset managers. While young investors want more crypto, two-thirds of wealth managers surveyed by Capgemini say they don't have investment options for emerging asset classes, including crypto. Young investors are also more likely to venture overseas with their portfolios. A majority of millennials and Gen Zers say they want "enhanced offshore investments," according to the survey. Of particular interest are the new wealth hubs around the world, including Singapore, the UAE and Saudi Arabia. The next generations "are more global," Ramakrishnan said. "They have traveled more. They understand global dynamics. That enables them to be interested and get some of the returns that they're seeing in in these in these markets." Young investors are digital natives, yet wealth management firms have been slow to adapt — still leaning on in-person meetings or phone calls for many client interactions. While 78% of baby boomers prefer face-to-face meetings over video calls, millennials want mobile apps that allow them to access and trade their portfolios. "This is not a 'let's sit down with you once a year and walk you through how your portfolio is doing,' or once a quarter and walking through your portfolio is doing," Ramakrishnan said. "This is an active engagement channel and with consumable nuggets of information that they should get." Two-thirds of millennials say they expect advanced digital offerings from their wealth managers. Nearly half complain of a lack of services available on their preferred digital channels. Aside from useful content in short "nuggets," next generation investors want real-time access to all their financial information in one place, according to the report. They also want "intuitive tools for decision making and secure transaction capabilities," according to Capgemini. More than two-thirds of baby boomers want the next generation of inheritors to receive financial education to manage their inheritances responsibly. Yet many of the education programs from wealth management firms aren't proving effective. Some say the programs are too dry, or talk down to younger investors, or feel outdated. "It's not just putting out these huge reports that talk about the impact of interest rates and what is happening with the market," Ramakrishnan said. "That's hard for people to consume. It's got to be something that's simplified, that that people can pick up and something that's actionable." Josh Brown, the CEO of Ritholtz Wealth Management, which has built a large following among GenZers with its podcasts, blogs and social media, said young clients want more authentic, personal communications. ""The new generation grew up following people, not companies," Brown said. "The winners in today's world are the firms that marry personalities and people the audience cares about with great products and services. We figured out years ago that it's make someone into a fan first and those fans become your potential clients." The Inside Wealth newsletter by Robert Frank is your weekly guide to high-net-worth investors and the industries that serve them. Subscribe here to get access today. Along with tailored investment strategies, young investors are looking for a broader range of services related to their wealth. Estate and tax planning are key, along with philanthropy advice, according to Capgemini. They also want a growing list of concierge services, from luxury travel and bespoke experiences, to advice and insights into luxury purchases, including fashion, beauty, jewelry, wine and spirits. Despite their youth, next generations are also looking for quality advice on medical care and wellness, along with education advisory (i.e., admissions). Goldman Sachs, for instance, partners with a London-based concierge to offer medical concierge support, in-home consultations with doctors and education advisory. Cybersecurity advice is also a fast-growing service for wealth management firms. "It's that ability to get something that may be exclusive, that they may not be able to get otherwise," Ramakrishnan said. "The next generations are more experience-driven than product-driven. So it's not about just buying luxury goods; it's luxury experiences, tailored experiences. Those are the kinds of partnerships that the wealth management firms can provide that will make and increase loyalty among that customer."
Associated Press
6 days ago
- Business
- Associated Press
North America High-Net-Worth Individual Population Surges, While Europe and Middle East Shrink: Capgemini Report
PARIS--(BUSINESS WIRE)--Jun 4, 2025-- TheCapgeminiResearch Institute'sWorld Wealth Report 2025, published today, reveals the global high-net-worth individuals 1 (HNWIs) population rose by 2.6% in 2024. Now in its 29 th edition, the report finds this increase was driven by the growth in the population of ultra-high-net-worth individuals (UHNWIs), which grew by 6.2%, as strong stock markets and AI optimism boosted portfolio returns. The data indicates that alternative investments 2, such as private equity and cryptocurrencies, are now an established presence in HNWI holdings, representing 15% of their portfolios. At the end of 2024, according to Capgemini's research: Within the largest individual markets, the U.S. was the clear leader, adding 562,000 millionaires as the country's HNWI population grew by 7.6% to 7.9 million. India and Japan were standouts in the Asia-Pacific region, with both countries registering 5.6% growth, adding 20,000 and 210,000 millionaires, respectively. In contrast, growth in China was negative, with HNWI population declining by 1.0%. 'The great wealth transfer will be a defining moment for the industry. Despite global wealth on the rise, 81% of inheritors plan to switch firms within one to two years of inheritance. Potentially losing these unsatisfied clients is going to create significant risk for the global wealth management sector,' said Kartik Ramakrishnan, CEO of Capgemini's Financial Services Strategic Business Unit and Group Executive Board Member. 'The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents. This necessitates an urgent shift away from traditional strategies to effectively cater to their evolving needs on this wealth journey. Firms must also prepare to equip advisors with the digital capabilities, potentially augmented with agentic or generative AI, to mitigate the risk of losing both clients and key employees.' As of January 2025, HNWI investors parked 15% of their portfolios in alternative investments, including private equity and cryptocurrencies. They are willing to take more risks to expand their wealth – allocating capital to higher growth asset classes and niche product offerings, notably by 61% of millennial and Gen Z HNWIs. Beyond digital resources, the industry is on the cusp of a talent shortage amid an unprecedented transfer of wealth to Gen X, millennial, and Gen Z inheritors. In the next 12 months, one in four advisors plan to be on the move, with a majority transitioning to a competitor firm and a few starting their own ventures. Additionally, 20% of advisors say they will retire by 2035, with 48% planning to retire by 2040. As the great wealth transfer unfolds, the wealth management industry will need to reimagine product offerings through tailored investment options for next-gen HNWIs. Firms must empower and engage advisors with an intuitive digital experience across all channels to secure their loyalty, the report concludes. Read the full report: Sailing through the Great Wealth Transfer Get The Future You Want | Visit us at View source version on CONTACT: Press contact: Fahd Pasha Tel.: +1 647 860 3777 E-mail: [email protected] KEYWORD: EUROPE UNITED STATES NORTH AMERICA FRANCE INDUSTRY KEYWORD: DATA ANALYTICS ASSET MANAGEMENT CONSULTING ARTIFICIAL INTELLIGENCE PROFESSIONAL SERVICES TECHNOLOGY DIGITAL CASH MANAGEMENT/DIGITAL ASSETS BUSINESS SOURCE: Capgemini Copyright Business Wire 2025. PUB: 06/04/2025 07:07 AM/DISC: 06/04/2025 07:05 AM
