Latest news with #ultrawealthy
The National
6 days ago
- Business
- The National
Dubai moves up global wealth chart as investors flock to city
Dubai has climbed five places to rank as the seventh most- expensive city in the world for the ultra-wealthy this year, driven by a strong rise in property prices, according to a new report. The city is also the fourth most costly in the Europe, Middle East and Africa region for the affluent to lead a luxury lifestyle, the study by Swiss private bank Julius Baer revealed. The emirate is now a 'firm challenger' to the 'traditional bastions of wealth ' in the EMEA such as London, Monaco and Zurich, despite only a marginal 1 per cent increase in average local currency prices, the Julius Baer Global Wealth and Lifestyle Report 2025 said. The index looked at a basket of 20 goods and services that affluent consumers buy and use ranging from property, watches and jewellery to lawyers and MBAs. While prices of most of those have remained stable in the last year in Dubai, there has been a strong rise in big ticket items, such as cars (up 13 per cent) and residential property (up 17 per cent), which have affected the overall cost of living for wealthy people, the research showed. 'The prime property market has been growing rapidly, as affluent individuals are drawn by the high-quality residences on offer – a trend that has seen cities like London facing stiffer competition,' the report said. 'The fact that buyers get more than twice the square footage for their money compared to London has not gone unnoticed.' Last year, Dubai's real estate market saw 'exceptional growth', with property sales values rising 27 per cent year-on-year, it added. The number of millionaires living in Dubai has doubled in the past decade, making it one of the world's fastest-growing wealth hubs, an April report by New World Wealth for investment migration advisory company Henley & Partners showed. Dubai now has 81,200 millionaires, 237 centimillionaires (whose wealth is in the hundreds of millions) and 20 billionaires. The previous year, there were 72,500 millionaires, 212 centimillionaires and 15 billionaires, the data showed. In the past decade, there has been a 102 per cent increase in the number of millionaires in Dubai. Singapore retained its position as the most expensive city for HNWIs globally this year, followed by London, which moved into second place. Hong Kong, Monaco and Zurich round out the top five spots. Shanghai ranked sixth and Dubai was in seventh place. New York, Paris and Milan filled the remaining spots in Julius Baer's list of top 10 most expensive cities for the ultra-wealthy. The momentum of millionaires relocating to Dubai, that began during the pandemic, is predicted to continue. The net inflow is destined to pass that of all other countries, according to Julius Baer. 'On its current upwards trajectory, it may not be a surprise to see Dubai vying for a spot on the podium in coming years. Though the cost of living well in the emirate may be swelling, along with the number of HNW residents, its attractiveness appears to remain undimmed,' the Swiss bank said. In the Middle East, there was a high appetite for both experiential and material goods among wealthy residents. The region's HNWIs focused on hotels, designer men's clothing, fine dining, smartphones and high-end women's handbags, the report revealed. Globally, the prices of the basket of goods and services declined by 2 per cent globally, pointing to reduced luxury consumption. While the price of services fell modestly by 0.2 per cent, cost of goods declined by 3.4 per cent on average. A key driver was a fall in technology prices across all regions. In contrast, prices of business class flights, watches and school fees have risen sharply, the report found. Watch: Dubai's millionaires double as London drops down wealth list It also found 'profound shifts' in the attitudes and behaviours of HNWIs worldwide. Amid growing geopolitical tension and economic uncertainty, affluent people are increasingly balancing the desire to enjoy life today with long-term planning for the future. 'Financial longevity has become a critical concern, with the majority of respondents indicating they would adjust their wealth strategies if faced with longer life expectancies,' Julius Baer said. 'HNWIs in Asia-Pacific, the Middle East and Latin America continue to embrace higher risk levels and diversify portfolios in line with personal values and emerging global trends. In the Middle East, real estate (18 per cent) and equities (13 per cent) emerged as the preferred asset classes for HNWIs in the last year.'
The National
6 days ago
- Business
- The National
Dubai ranked seventh-most expensive city globally for ultra-wealthy on rising property prices
Dubai has climbed five places to rank as the seventh-most expensive city in the world for the ultra-wealthy this year driven by a strong rise in property prices, according to a new report. The city is also the fourth-most costly in the Europe, Middle East and Africa region for the affluent to lead a luxury lifestyle, the study by Swiss private bank Julius Baer revealed. The emirate is now a 'firm challenger' to the 'traditional bastions of wealth ' in the Emea such as London, Monaco and Zurich, despite only a marginal 1 per cent increase in average local currency prices, the Julius Baer Global Wealth and Lifestyle Report 2025 said. The index looked at a basket of 20 goods and services that affluent consumers buy and use ranging from property, watches and jewellery to lawyers and MBAs. While prices of most of those have remained stable in the last year in Dubai, there has been a strong rise in big ticket items, such as cars (up 13 per cent) and residential property (up 17 per cent), which have affected the overall cost of living for wealthy people, the research showed. 'The prime property market has been growing rapidly, as affluent individuals are drawn by the high-quality residences on offer – a trend that has seen cities like London facing stiffer competition,' the report said. 'The fact that buyers get more than twice the square footage for their money compared to London has not gone unnoticed.' Last year, Dubai's real estate market saw 'exceptional growth', with property sales values rising 27 per cent year-on-year, it added. The number of millionaires living in Dubai has doubled in the past decade, making it one of the world's fastest growing wealth hubs, an April report by New World Wealth for investment migration advisory company Henley & Partners showed. Dubai now has 81,200 millionaires, 237 centimillionaires (whose wealth is in the hundreds of millions) and 20 billionaires. The previous year, there were 72,500 millionaires, 212 centimillionaires and 15 billionaires, the data showed. In the past decade, there has been a 102 per cent increase in the number of millionaires in Dubai. Singapore retained its position as the most expensive city for HNWIs globally this year, followed by London, which moved into second place. Hong Kong, Monaco and Zurich round out the top five spots. Shanghai ranked sixth and Dubai was in seventh place. New York, Paris and Milan filled the remaining spots in Julius Baer's list of top 10 most expensive cities for the ultra-wealthy. The momentum of millionaires relocating to Dubai, that began during the pandemic, is predicted to continue. The net inflow is destined to pass that of all other countries, according to Julius Baer. 'On its current upwards trajectory, it may not be a surprise to see Dubai vying for a spot on the podium in coming years. Though the cost of living well in the emirate may be swelling, along with the number of HNW residents, its attractiveness appears to remain undimmed,' the Swiss bank said. In the Middle East, there was a high appetite for both experiential and material goods among wealthy residents. The region's HNWIs focused on hotels, designer men's clothing, fine dining, smartphones and high-end women's handbags, the report revealed. Globally, the prices of the basket of goods and services declined by 2 per cent globally, pointing to reduced luxury consumption. While the price of services fell modestly by 0.2 per cent, cost of goods declined by 3.4 per cent on average. A key driver was a fall in technology prices across all regions. In contrast, prices of business class flights, watches and school fees have risen sharply, the report found. Watch: Dubai's millionaires double as London drops down wealth list It also found 'profound shifts' in the attitudes and behaviours of HNWIs worldwide. Amid growing geopolitical tension and economic uncertainty, affluent people are increasingly balancing the desire to enjoy life today with long-term planning for the future. 'Financial longevity has become a critical concern, with the majority of respondents indicating they would adjust their wealth strategies if faced with longer life expectancies,' Julius Baer said. 'HNWIs in Asia-Pacific, the Middle East and Latin America continue to embrace higher risk levels and diversify portfolios in line with personal values and emerging global trends. In the Middle East, real estate (18 per cent) and equities (13 per cent) emerged as the preferred asset classes for HNWIs in the last year.'
Daily Mail
07-07-2025
- Business
- Daily Mail
Friends of the ultra-wealthy reveal their darkest secrets... from tantrums to 'filthy' hoarding episodes
They may have billions in the bank, but behind closed doors, the ultra-rich are hiding some dark secrets. Now, insiders on Reddit have lifted a lid on the shocking behavior of the super-wealthy, from throwing tantrums to being cheap. It began after one user asked on the social media platform, 'People who have worked for the ultra-wealthy, what are some of their deepest, darkest secrets?' Over 2,000 people have chimed in, with many former employees and friends of the rich and famous sharing some wild behavior that they witnessed. One person recalled working for a man who knew the people close to him only loved him for his money - including his own wife and kids. 'I did a personal IT service for an incredibly wealthy guy in Tucson. House overlooking the city from the foothills, eight-foot single pane windows, etc.,' the user shared. 'He had a ranch of at least 40,000 acres in Texas, and most of his money was from oil. 'His biggest secret was that he knew most people only liked him for his wealth, including his present wife, two kids, and two step-kids, and they'd cut ties in a heartbeat if it disappeared.' Another person claimed that rich people 'are unusually cheap,' as they recalled one wealthy client who had a massive collection of the highest tier wine but served guests at a party cheap alcohol. 'I'm in wine sales and cellar management, and I had a client who had over $10 million in First Growth Bordeaux and Grand Crus Burgundy, and he served $20 Pinot and bubbles (Cava) at his Christmas party for his best friends and celebrities,' they revealed. 'He died with a $10 million cellar.' One pilot who has flown private jets for 'various wealthy individuals' shared, 'People you would likely never know, they don't exist in the public sphere in the way someone like Bezos does. 'They don't always have some deep, dark thing that is unique to wealth. They're human, and the things, the emotions, the tenancies they exhibit are the same across the entire human spectrum. 'I've come away seeing [that] wealth just makes you more of what you are. If you're mean, you're more mean. If you're nice, you're more nice.' Someone else claimed that they found that a 'surprising number' of rich people are 'hoarders.' 'A surprising number of them are hoarders. Like… mansion-level filth hidden behind marble gates. Rich doesn't mean clean,' they wrote. Others spoke about cheating, controversial affairs, and secret mistresses. One commenter recalled how one the outside, it looked like one rich man they knew had divorced his wife and had remarried. But behind the scenes, it was a different story. 'He never divorced [the first woman], and [his] second wife [was actually] a mistress that he paraded around as his wife,' the user penned. 'Actual wife doesn't give a s**t as long as they're still rich, but won't let his second batch of kids inherit their joint assets, so he had to buy his second wife some income properties for security. 'She'll be OK, though. He bought her $100 million worth of income properties.' Someone else claimed that the wealthy often throw tantrums 'like babies.' 'They are petty and will throw you under the bus in a millisecond if it will even slightly benefit them,' they described. 'While I worked [for a successful company], I was screamed at, had things thrown at me, I saw grown men throw huge tantrums 'They do it because they know they will get something out of it. Your work had to be beyond perfection because they would purposely try to find faults to exploit.' One commenter said their stepfather was part of the ultra-wealthy, and claimed he often tried to buy his way out of situations. 'He believes that money can solve everything, which, to no surprise, it does not,' they shared. 'He has this idea that he can just pay people to either shut up or ignore issues. Including family. 'He has constant arguments with my mom that often involve him completely ignoring the problem and giving her some rather large gift, thinking that it will solve the issue.' Another claimed the rich only donate to charities to 'hide crimes.' 'Routing all sorts of favors, money laundering, and bribes [through] various 501(c)3s and family foundations and making sure they are photographed at their "charitable" events so everyone sees their "philanthropy,"' the comment read. A different user also detailed how disconnected they are from 'regular people.' 'That they are painfully detached from regular struggles and genuinely seem to think that their success is tied to meritocracy, even when born into extreme wealth, and when it is earned, they will not accept [that] luck played a factor,' they disclosed. Lastly, one commenter claimed that many of the ultra-wealthy are 'joyless' and have drug problems. 'This is 50 years ago, worked for dozens of the most wealthy, think $100 million and up crowd,' they said.
Yahoo
07-07-2025
- Business
- Yahoo
People Who've Worked For The Ultra-Wealthy Are Airing Out Their Dirty Laundry, And Wow, Wow, Wowwwww, These People Are Something Else
Reddit user clitical-roles recently asked, "People who have worked for the ultra-wealthy, what are some of their deepest, darkest secrets?" People quickly filled the thread to share their own experiences working for millionaires and billionaires, and they definitely aired some of their dirty laundry out. Here's what they revealed: 1."I worked for a family in the 10-figure range. They would take advantage of small businesses and threaten not to pay them unless they received 'more than expected.' The work had to be perfect, or they would complain. They forced small businesses to take them to court to get paid or get a big discount." —PM_YOUR_GSTRING_PICS 2."They are unusually cheap, or most I've worked for are. I'm in wine sales and cellar management, and I had a client who had over $10 million in First Growth Bordeaux and Grand Crus Burgundy, and he served $20 Pinot and Cava at his Christmas party for his best friends and celebrities. He died with a $10 million cellar." —investinlove 3."I married into one of these families. It's amazing. In every one of their homes, they have a soundproof room. It's legit soundproof. Professionals came in and made sure. You walk in and the noise of the world just sucks out as the door closes. It's surreal and feels like a sci-fi room. It's super trippy. It's for someone in the family to go into and just scream and scream and scream until they feel better. We all know who it is; it's not a family secret. But we don't talk about it. There are weird kinds of pressure when you're that wealthy. They hold it well until they don't. That's why they have scream rooms." —dreadpiratedusty 4."They lie on their taxes, and if they get caught, they just pay the difference. I found this out directly from them when they got drunk at my country club job. They probably have a net worth of over $50 million. This should surprise nobody." —Cryatos1 5."I worked as a personal assistant for a billionaire. He was delusional, but his wife was something else. She would have breakdowns and start screaming and crying in her office, which was glass so that the whole floor could see and hear her. It could be over something as simple as her lunch being late or wrong (luckily, I was not her PA. She went through a few of them quickly). She was supposed to speak at a company event once, and it was raining. I was told we pushed her slot to avoid rain, so we called her hairdresser, who was doing her hair at a rented mansion. She still showed up for the original time and had an absolute meltdown about being rainy and muddy and getting her slot pushed. My boss was pissed at me and didn't want to hear any of it. They just took it and said sorry, but told me, 'Sorry is for losers.'" —Electronic-Run-145 6."They can actually be quite cheap when nobody is looking; penny pinching is pretty common. They will use the lowest bidders on stuff like cleaning and lawn service, then stiff people on payment over minor disputes. They're also poor tippers when nobody is around. I've been out to dinner with a wealthy friend, the table order was quite expensive, but she only tipped a $5 bill. She slid it quickly under a napkin so nobody could see how little she left. I'm sure the tip would have been much larger if she'd been with her other wealthy friends. That same friend also bought me a drink once while we were out, a soda, not an alcoholic beverage. It was $1.50, which is no big deal for someone with a bank account bursting at the seams. When we returned to her place, she asked me to repay her because she was nearing her 'budget' for the week on snacks and stuff. I gave her two $1 bills; she kept the change." —will_write_for_tacos 7."There were a few secrets, but having a nude painting of yourself in the foyer of the guest house was one. I couldn't believe it. Lol." —Goldenpeanut88 8."I have flown private jets for various wealthy individuals. People you would likely never know because they don't exist in the public sphere in the way someone like Bezos does. They don't always have some deep, dark thing unique to wealth. They're human, and the things, the emotions, the tenancies they exhibit are the same across the entire human spectrum. I've come away seeing that wealth makes you more of what you are. If you're mean, you're meaner. If you're nice, you're nicer. They still have problems, some of which are tied to their wealth, which is family drama, having access to the wealth, and raising children to be humble or entitled. They are more insulated from legal or political consequences." —MavenAloft 9."I got upgraded recently by a very kind hotel staff member and got to stay on the hotel's 'exclusive' floor. The rooms were really nice, but it was all the extra stuff — an exclusive lounge with free canapes, a selection of custom scents for your room, and a lovely dedicated concierge who seemed deeply confused that I didn't need him to do anything for me. And access to a spa. Later, I was sitting in that lounge, and a woman walked up to the concierge, gave him a piece of paper with her measurements on it, and asked him to have some workout clothes/shoes sent up to her room so she could use the gym, as if they just had a magical chamber downstairs with everyone's exact size of shoes and clothes sitting there." "She seemed perplexed when he explained they didn't and suggested a Lululemon store a few blocks away. She then said, 'Excellent! Send someone over to pick some things up. I prefer earth tones. Just charge it to my room.' She didn't even wait for a reply before walking away. It's mind-blowing. They are just used to getting everything they need, all the time, at a moment's notice. They are utterly dumbfounded when they hear the word no." —raw_copium 10."I worked in the wedding business for eight years. After a while, I was able to sniff out ultra-wealthy clients during initial phone calls/emails and always turned them down. Newly-rich people have one objective: to impress others. That's it. Nothing was ever, EVER good enough. Most wedding clients had timelines, which at most were broken into 30-minute blocks. I had one wealthy mother-in-law who had her timeline in five-minute blocks. Yes, five-minute blocks. After the wedding, she emailed me SIX PAGES of criticism, absolutely heartbroken that her daughter's 'golden hour' sunset photos were delayed by 10 minutes because our champagne service was not efficient enough. I had one bride email me six months after her wedding to complain that we provided her a new staff member for her reception." "Mind you, this person was extra labor; she was provided an additional server for free, as I always paid extensively for new hires to have on-the-job training before they were given real shifts. One rich bride was enraged that my employees put two, and not one, orange slices in her cocktail. By contrast, blue-collar people were almost always the nicest, laid-back, most sincere, grateful, high-tipping clients, with actual friends and family, who had a wedding for all the right reasons. Old-money people and self-made successful people (i.e. people who worked construction then launched their own businesses) were night and day different from new money (mostly IT) douchebags, obsessed with impressing The Joneses." —TheeNeilski 11."I worked closely with a startup CEO who had a net worth in the hundreds of millions at the time (I think he might be a billionaire now, but I'm not sure). He lived in fear of his wife or kids being kidnapped. He seemed very sure it was inevitable and took several precautions to prevent it. I'm unsure if he had had some close calls or something in the past or if it was just something he was anxious about. But it came up in different contexts all the time. He had two sets of security guards, each watching his house, but also each other, tons of security everywhere, and I'm pretty sure he had some sort of tracker surgically installed in his kids (just a gut feeling, he never said so, and they didn't have a weird scar or something)." —MenudoMenudo 12."I knew people who would buy multi-million dollar homes in a resort area and live there for peak season, one maybe two years, then sell them just as quickly for a huge profit. They considered it their jobs because they'd make hundreds of thousands just by holding a property for a year or two." —TweezerTheRetriever 13."I worked for a high-end furniture store and delivered furniture to the wealthy for years when I was young. Most try to squeeze as much out of you as possible while paying as little as possible. So many times, SO MANY TIMES, we would show up with furniture and they'd try to get us to move the whole fucking house around for them like we were United Van Lines. If we refused, they would call the manager and tell them we have to do it, or they'd refuse the furniture. We could just leave, and they'd leave a bad review. Eventually, the manager clarified to all customers that we are a delivery service, not a move-your-shit around service." "Once that was solved, they'd try to bribe us with tips. A few times when we were broke, we agreed, and then they'd not give us the tip anyway by either pretending they forgot and hoping we wouldn't say anything or making up some bullshit reason to not tip us. 'Yeah, when you carried that 300-pound armoire down to the basement, the third step is creaking now. It didn't do that before. We will have to use that tip money to contribute to the carpenter who will fix that step.' Then, when we'd give them the bill, they'd act like we were asking them for a small kidney and carry on about how much it was like we were stealing from them. As if they didn't fucking know how much it cost when they ordered the thing. 🙄 I fucking hate rich people. I know SOME of them are okay, but based on my experiences, I'd say a good 90% of them are the cheapest, most power-abusing assholes I've had the misfortune of dealing with." —Ordinarily_Average 14."My dad cleans houses ranging from the tiniest studio apartment to houses with their own security guard and driveway in SoCal. The biggest houses have the cheapest and most judgmental people. I once went to a house where their master closet was bigger than our house (1,800 sqft). The owner was the nastiest person I've ever met. Middle-class people were the best. They always tipped and gave free food to my parents." —Appropriate_Sky_6571 15."I've done work for a country music star. In the early days, they would hand out T-shirts, hats, candy, etc., to everyone who worked for them. It was a great morale booster. Once they went big-time and got married, all of that stopped. Suddenly, every shirt needed to be tallied, every dollar tabulated. They/their wife got incredibly tight, despite having made enough money to literally buy a small country. Now, they blow through millions of dollars in sponsor dollars annually on certain vehicles, but they are sponsor dollars. They won't spend a cent of their money without it being absolutely necessary." "The moral of the story: Once you get 'rich rich,' you don't spend your money. You spend other people's those people literally throw it at you by the millions." —RGrad4104 16."I worked at a place that sold very expensive watches and jewelry frequented by the rich and famous. I would get in trouble sometimes because I didn't recognize them (basketball players' wives, for example). These were a specific type of rich person — the ones who wanted others to know exactly how rich they were. I learned that some brands cater specifically to these people and are mostly only recognized within their own circles. Many ultra-wealthy people don't dress up when they go out; they can be plain or even sloppy. It was important to never assume someone's status. If it benefits them, they are petty and will throw you under the bus in a millisecond. While I worked there, I was screamed at, had things thrown at me, and saw grown men throw huge tantrums. They do it because they know they will get something out of it." "Your work had to be beyond perfection because they would purposely try to find faults to exploit. I hated that their behavior was always rewarded. I preferred it when their assistants were the ones we helped. Many of them seem incredibly isolated and lonely. Some would come and talk politics to us because they had no one else who would listen. Though, honestly, we weren't allowed to express any of our own thoughts, so it was a pretty one-sided conversation." —Artwaste 17."That they are painfully detached from regular struggles and genuinely seem to think that their success is tied to meritocracy, even when born into extreme wealth, and when it is earned, they will not accept that luck played a factor. Also, they fundamentally can't understand the word no, and you have to explain things to them so they think they are right. For example, when they try to break specific rules, you often have to say, 'I will make sure to share your suggestions so hopefully we can change that rule in the future.' Also, NO ONE loves free shit more than rich people." —teachmeyourstory 18."They are not loyal to anyone but their money, and if you lose their money or threaten its existence in any way, they take it as a personal attack." —Natural_Fox_6710 19."This was 50 years ago. I worked for dozens of the wealthiest, think the $100 million and up crowd. Very consistently joyless, entitled, arrogant, and cheap, often overlaid with substance abuse issues. With notable exceptions. One of the richest, a multi-billionaire, occasionally came out and worked with me. I was doing landscaping, maintenance, whatever. He asked me to help plant some strawberries, worked with me the whole time, and described high finance, how to shift risk to the other guy while retaining control and the lion's share of the profit. Easy going, super nice guy." —ever-inquisitive 20."My boss is very wealthy, and a complete skinflint to go with it, to the extent that I cringe when I have to put fuel in the work vehicle. He's also completely out of touch with reality on many levels. Perhaps the best illustration of this was a conversation we had once when my first kid was a few months old and dealing with lactose intolerance and terrible acid reflux. I mentioned one day how tired I was from the lack of sleep, and he responded with something like: 'Hmm, yes, of course, when our children were that age and we lived overseas, you always had servants to take care of that type of thing for you.'" "Despite that, he's not a bad person and he has usually (with one or two notable exceptions) done his best to look after me in a way which most employers probably don't. Sometimes I just have to remind myself that he lives on a different planet, however." —Unhappy_Jaguar7960 21."I was an electrician and worked on the home of a very famous pro wrestler. We were adding a bathroom to the guest house on his property. The bathroom in said guest house was 1,200 sqft, just to give you an idea of how ungodly rich this guy is. The main house was basically a castle, easily 30,000 sqft. They had six Great Danes that would shit all over the place, and they'd just let the giant piles of dog shit sit on the marble floors of their gawdy ass mansion until the cleaners came every day to clean it up. They're not the only wealthy people I've known who were like this. They're pigs. They'll live in their own filth until whoever they pay to clean up after them comes along and rescues them." —emmett_kelly 22."I changed out some home security stuff for a very wealthy older couple. They had at least $10 billion. The wife was incredibly kind, and if encountered in the wild, she would be totally normal appearing. It was the little things in their home that blew me away. Handcrafted everything. They even sent me and my guys home with a bunch of stuff from their garden." —jordanr01 23."I had to entertain an oligarch for an afternoon once, but had no idea he was a legit oligarch with destroy-the-world amounts of wealth. The only secret I gleaned was that you never know who somebody is. He dressed, acted, and enjoyed in all the ways a normal person on a budget would. I didn't get the impression that was an act for me but he definitely appreciated that I didn't know or give a fuck who he was. I took him to a dive bar and for tacos after. My boss said the oligarch reported a great time and ensured I got the recognition." —sonofchocula 24."He was 'divorced' and 'married' a second wife. He never divorced, and his second wife was a girlfriend whom he paraded around as his wife. His actual wife didn't give a shit as long as they were still rich, but she won't let his second batch of kids inherit their joint assets, so he had to buy his second wife some income properties for security. She'll be okay, though. He bought her $100 million worth of income properties." —SleepoDisa 25."A surprising number of them are hoarders. filth hidden behind marble gates. Rich doesn't mean clean." —blissdoll_ 26."I work for a billionaire family, and what was most shocking was the amount of effort they put into pretending they are normal or like everyone else. It feels like a weird front to me, because we all know the reality, but we're expected to walk around like everything is normal." —Playful_Name4675 27."I worked for a millionaire owner of security firms. He would have me running all over town to different grocery stores to pick up cases of groceries on sale and deliver them to his house. He was too cheap to pay for parking, so if he had to run into downtown for something quick, he would take me with him and he'd jump out and I'd scoot over and keep driving around the block until he came back. He had me clip and file all the newspaper coupons. He would sell his kids' outgrown clothes at consignment stores." —magjenposie 28."I've helped take care of some very rich old people. A lot of the mother-son relationships special." —gumdrophead "They're cheap and stingy but strangely generous to the chosen few they let in. Also, they don't think they're ultra-wealthy because they're constantly comparing themselves to anyone who has more/newer/better than they do. Also, their wealth to them is subjective in the context of their own perceived rise and fall. They are very insecure about anything they've lost. They will feel their empire has fallen as they age." —IronOk4535 Have you ever worked for someone extremely wealthy? What was it like? What did you learn about them or their way of life? Tell us in the comments or share anonymously using this form.
Zawya
01-07-2025
- Business
- Zawya
How to preserve and grow your wealth, generation after generation?
Barry Johnson, Founder and Executive Chairman, 7 Generations Africa (7GA) 7Generations Africa (7GA) is one of a small but growing number of firms addressing what might be described as an enviable chal- lenge – how to preserve generational wealth. As the continent grows, opportunities to accrue mega-wealth are also increasing. The 2024 Africa Wealth Report predicts a 65% rise in millionaires by 2033, but as Barry Johnson likes to point out, retaining wealth is often more difficult than achiev- ing it in the first place. The figures on cross-generational wealth retention are sobering. 'The data says roughly 70% of wealthy families lose their wealth by the second generation. By the third - that's 75-80 years – that percentage grows to 90%,' he tells African Banker. Family offices differ in size and struc- ture and governance but are widely con- sidered as a dedicated entity that helps ultra-wealthy families manage their fi- nancial, governance and legacy affairs. In essence, family offices are privately held companies that manage the wealth, and some personal affairs, of families with assets that typically exceed $50m. Services that family offices provide include investment management, tax planning, estate planning, philanthropy coordination and administrative support, all tailored to the family's specific needs and objectives. Family offices can be structured as single-family offices, serving one family exclusively, or multi-family offices, which cater to multiple families, offering shared resources and expertise. Johnson, who has a multi-dimensional view of the world informed by 30 years of work experience in family offices and Wall Street, explains that the value of a family office extends far beyond money management. 'A well-structured family office doesn't replace financial advisors or external professionals; rather, it serves as a governance platform that orchestrates and optimises their contributions to pro- tect and grow wealth across generations – always attuned to the values, culture, and aspirations of the family.' In addition to helping wealthy families themselves, Johnson sees family offices as a valuable driver and engine for national economic development. This conviction comes from his experience working in senior economic development roles for the US White House, including his position as the first chief foreign direct investment (FDI) official for the US. He believes that family offices and wealthy African families constitute a unique and potent force for positive change across the continent. 'Wealthy families in Africa and from across the world can provide growth capi- tal supporting Africa's development while also benefiting from the financial returns their growth capital helps generate in the high-growth market that Africa has now become. 'Because wealthy families have finan- cial capital, they also have reputational, social and other capital – meaning a wealthy family can support a project as a for-profit project or as a philanthropic project. Just the involvement of that fam- ily will cause others to certainly look at it and probably be more likely to support it.' In that sense, they can catalyse invest- ment into promising ventures that are often overlooked by conventional inves- tors, thus helping to create more wealth and jobs. 'They can be influencers who have the capacity to cause others to come on board. Even if they put a drop in the water, they can cause others to pour.' Johnson and 7GA support these mutu- ally beneficial connections with fami- lies, governments, development finance institutions, and others looking to drive Africa's progress, while generating posi- tive financial returns as well. Retaining or squandering wealth What separates families that have main- tained wealth over several generations from those that are unable to do so? 'What you would see in families that have had money for hundreds of years is an atten- tion to family knowledge, education, [and] readiness and preparedness for wealth ownership by generations – starting at an early age and through to the adults.' Families that retain wealth, he says, pay attention to their values and have clear missions and visions. They also have to carefully manage the various outside vendors and service providers that cater to the business and personal needs of the family. A holistically focused family office, he argues, allows families to achieve comprehensive governance profession- ally. 'This way, they get a combination of 'offence' – unlocking, creating and multiplying wealth – and 'defence', which is about protecting and preserving what has been made.' While Johnson notes that family offices are most effective for those with at least $50m (when the scale justifies the operational costs), 7GA's market focus is on families with $100m or more in net worth. He emphasises that beyond wealth, the key factor is having the right mindset. 'Regardless of what wealth you have, you should adopt a family office mindset,' he advises. 'The family office mindset is one that is rooted in the family's interests and vision, and it thinks long-term. It understand the com- plex world that ultra wealth gener- ates spontaneously and the great opportunities and threats that co- exist. 'It speaks about sustaining the fortune, the family unity and well- being, and the positive impacts that a family can have in the current generation and for hundreds of years hence,' he adds. Focussed on the long arc of time Successfully preserving wealth, Johnson says, requires an inte- grated approach. 'As one of my Chief Information Officers likes to say, you can think of it as being like travelling in a vessel through changing times and circumstances, both inside and outside of the vessel. 'That means life is changing and the family is changing, but you want to do that successfully for seven generations or more. And the way that you do that, first of all, is by projecting your sights on many generations into the future, much like a great endowment does,' he says. 'This is a particular focus of 7 Genera- tions Africa,' he explains. 'We're really focused on the long arc of time but as it turns out, the strategies and approaches that we use to move towards seven gen- erations, is also what you would do to create better performance in the near- term and current generation.' To illustrate his point, Johnson shares an interesting statistic. 'After the first generation, less than 10% of wealth loss cases are due to investment mismanage-ment. Some even say 5%. The reasons for the loss are more often non-finan- cial management reasons. It's the other things. It's the readiness. It's steadiness. It's understanding. It's the relationships within the family itself and between the family and the ever-growing orchestra of experts out there.' To further buttress the point, Johnson, whose career includes working with global musical icons as a Sony Music executive, points to Michael Jackson, the late pop music megastar who famously ran into financial troubles at various points in his life, despite having an army of lawyers and financial advisors tasked with pre- venting exactly that from happen- ing. An integrated approach – the type that family offices offer – is much more attuned for this task, Johnson says. Johnson also points to the dis- tinction between making mon- ey and preserving wealth. 'Say you've made a billion dollars from widget making. The challenge is you are an expert in widget mak- ing and not, probably, wealth it- self.' For such a person, a family of- fice is an ideal arrangement for managing their wealth and af- fairs, so they can concentrate on the day-to-day running of the business that brought the wealth in the first place - 'the goose laying the golden egg', as he de- scribes it. There are some 10,000 family offices around the world today but, depending on who you ask, only about 30-60 in Africa, catering to an estimated 1,500-2,000+ fami- lies with the kind of wealth that justifies having a family office. This despite the fact that the con- tinent is currently growing wealth at a faster clip than many other continents. Johnson says that the lack of structures to preserve wealth means that about 70% to 90% of the private wealth on the continent could be lost in one to three generations. 'You really need these holistic struc- tures, mindsets and professionalised sys- tems in place to help protect this future,' he stresses. Without local systems to help you do that, it may fall to foreign entities to do so; and that, Johnson says, comes with some risks. 'They may not have the same love for the countries, values, culture and history of Africa,' he cautions. This includes a love of working with Africa's people to use their knowledge, skills, energy, and monetary wealth, along with the conti- nent's other resources, to drive economic development on the continent rather than elsewhere. Strategic use of family offices can benefit all of Africa, he is convinced – it creates and realises value for itself and the world. n FACTS ABOUT FAMILY OFFICES Despite the rapid rise of Ultra High Net Worth families in Africa (>$30m net worth), only 1-2% have structured family offices, compared to 20-35%+ in North America and Europe. Africa currently has between 30-60 family offices serving an estimated 1,500-2,000+ families with wealth exceeding $100m, leaving a massive gap in governance infrastructure. Families without governance struc- tures spend, on average, 30-50% more on financial services due to lack of over- sight and misalignment among service providers. Single family offices globally control an estimated $6trn in assets, more than the entire hedge fund industry. Unlike institutional investors, fam-ily offices are 'patient capital', allowing them to take a long-term view of Africa's transformation. 'The family office mindset understands the complex world that ultra wealth generates spontaneously and the great opportunities and threats that coexist.' 'You can think of it as being like travelling in a vessel through changing times and circumstances, both inside and outside of the vessel.' © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
