IQ-EQ White Paper: The Great Global Wealth Transfer

The next 20 years will see a seismic transition of wealth between generations. It will be unlike anything the world has seen before, both in terms of its size and the underlying trends and themes driving and shaping it.

We at IQ-EQ have been trusted partners in wealth preservation and succession for decades. We know that the world has changed which has caused some traditional models of wealth transition to be obsolete. The nature and unprecedented scale of the upcoming Great Global Wealth Transfer, and the unique drivers behind it, have precipitated demand within our industry for clearer insight into this shifting landscape to ensure client needs continue to be met.

As an active member of the global ecosystem that will help facilitate the Great Global Wealth Transfer, this signature report is our contribution to providing that important and much needed insight.

We engaged Wealth-X, a global leader in wealth information, to set the scene for us from a quantitative perspective. Over $15 trillion worth of assets are set to pass to the next generation over the next couple of decades; the composition and nature of which varies somewhat globally. Whilst the data shows that the total worldwide number of UHNW families is small, their proportional share of global wealth is high. The global UHNW population also has more complex fact patterns, which bring unique challenges for intergenerational wealth transfer.

We also collaborated with Barton Consulting to undertake qualitative industry analysis with a particular focus on the UHNW population, including in-depth interviews with a diverse group of global expert advisors, family offices and other intermediaries. The key themes that have emerged are global, though there are regional nuances, and all are intertwined. They include: the globalisation
of families and their investments and the associated risks; a ‘step up’ in wealth governance via family offices; a shift in asset allocation in favour of more ‘exciting’ direct investment opportunities in private equity and venture capital; much greater focus on responsible investing and impact rather than traditional philanthropy; and increasing emphasis on technology. Also, no conversation these days seems complete without reflection on the likely impact of the current COVID-19 pandemic.

We would like to thank both Wealth-X and Barton Consulting for their crucial support in making this report a reality. To our readers, we hope you enjoy and find the insights useful - whether for your own family or the families you proudly represent or advise. Our hope is that the research and commentary contained herein will provide valuable support in facilitating the impending Great Global Wealth Transfer and ensuring family wealth is protected and enhanced for generations to come.

To download a copy of our Great Global Wealth Transfer White Paper, simply complete the form on the right of this page.