Who Are Centi-Millionaires?
The affluent ranks of those worth over $100 million in investable assets have swelled amid a period of relative global prosperity and market gains—more than doubling in number over the past 20 years, according to “The Centi-Millionaire Report 2022” from investment migration consultancy Henley & Partners. The pandemic, while economically and socially disruptive, also accelerated the pace of capital accumulation at the top.
It appears there’s no set path to attaining centi-millionaire status; some inherited their wealth while others worked their way up to the $100 million mark. Henley’s report finds some notable generational differences, however. Younger entrepreneurs who founded successful tech companies are growing newcomers in the class. Meanwhile, Baby Boomers have started selling off their businesses and cashing in stock options—but they still dominate the centi-millionaire circle. Unsurprisingly, white males over the age of 55 from the U.S. and Europe make up the majority of the cohort.
Those geo-demographics are shifting, though. Centi-millionaires in Asia, concentrated primarily in China and India, are rapidly growing—and they’re set to overtake the number in Europe and the U.S. within the next 10 years. Investment patterns are changing, as crypto and green assets become increasingly en vogue. And U.S.-based wealth-holders who benefitted from a government stimulus and ultra-low interest rates are now looking abroad to insulate against volatility.
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Although they are changing their profile, their habits and their aspirations, the centi-millionaires are here to stay.”
Misha Glenny, Journalist, Author and Contributor to “The Centi-Millionaire Report 2022”
25,490
centi-millionaires in the world
38%
live in the U.S.
Where Are They Located?
When it comes to the super-rich, the question ‘where are you from?’ may generate a varied response—because the answer likely includes any number of geographically dispersed residences at various times of the year. The top “home” country of centi-millionaires is the U.S., where they’re concentrated in the New York City financial center and Bay Area tech hub. The second and third largest numbers respectively reside in China and India—which both account for significantly larger centi-millionaire populations than the main European markets. Yet those figures continue to evolve as the super-rich increasingly pursue domicile diversification to broaden investment opportunities and business operations—and to have location fluidity that safeguards against risks ranging from geopolitical conflict to climate change to a viral outbreak.
Border closures and restrictions imposed by countries to contain the spread of Covid-19 brought into bright relief the benefits of sovereign diversification. Except for the lucky few with dual citizenship or residency rights, even the wealthy found themselves trapped behind borders. In the pandemic’s wake, millionaire migration is now surging, on pace to more than triple from 2020 to the end of 2023, according to Henley. Their study finds that countries with the biggest net influxes—the United Arab Emirates, Australia and Singapore—each offer some form of investment migration program, or so-called “golden visa,” which grant either residency or citizenship rights in exchange for an investment in the host country.
“A basic tenet of wealth preservation in the 21st century, regardless of wallet size, is diversifying away from risk,” writes Jeff D. Opdyke, a global-investment expert and report contributor. That may be especially true in the U.S., where about four in 10 centi-millionaires are located. “It’s likely that most (if not all) of [U.S.-based centi-millionaires’] financial lives are tied to the U.S. dollar, the U.S. government, the U.S. legal system, the U.S. financial system,” Opdyke explains. “Today, however, those entities each represent a heightened level of risk to which even centi-millionaires must pay attention.”
The Top 5 Locations For
Centi-Millionaires
Click To Explore
City
Country
New York
San Francisco Bay Area
London
Los Angeles
Beijing
# of centi-millionaires
737
623
406
393
363
Germany
United Kingdom
India
China
United States
9,730
2,021
1,132
968
966
City
Country
How Do They Spend Their Money?
In addition to their geographic movements and wealth flow patterns, centi-millionaire habits and interests are diversifying as well. While they tend to divert a portion of their millions toward the expected—travel, luxury goods, fine art, golf and classic cars—Henley’s report also finds that seven of their 10 most common hobbies involve outdoor recreation such as mountain biking and the increasingly popular fly-fishing. They’re also spending more on sustainable purchases and eco-friendly investments.
More centi-millionaires are developing eco-estates in places like Zimbali Estate, a stretch of tropical forest on the Dolphin Coast in South Africa. These ecologically friendly properties seek to preserve local flora and fauna, with some featuring their own bio-corridors, solar farms and water recycling facilities. At least half of the world’s centi-millionaires are expected to own or live in an eco-estate by 2050, according to Henley’s research.
Above all, the chief pursuit of the centi-millionaire is optionality: more choices to offer their children an elite education, to conduct business, to invest, to vacation, to retire. “The super-rich are motivated by the pursuit of freedom and independence,” writes Dr. Rainer Zitelmann, an author and report contributor. “They want to decide for themselves whether to work, what work to do, when to work, where to work, and with whom they work.”
The Top 10 Hobbies
of Centi-Millionaires
Golf
Art collecting
Cycling and mountain biking
Skiing
Horse riding
Fishing
Classic car collecting
Hunting
Yachting and sailing
Watch collecting
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What Are Their Next Moves?
The quest for ultimate financial independence through global citizenship is only expected to gain in prominence among centi-millionaires. Domicile diversification, it seems, is the new safe haven asset class, in the tradition of gold or AAA sovereign bonds. As a result, a large-scale migration of centi-millionaires is underway, and their global relocation activity will have grown by 145% in the decade from 2013-2023.
But where will the super-rich seek to diversify? Intensifying political divisions and a ballooning debt burden in the U.S. are challenging long-held views about the country’s status as a bulwark of security. Meanwhile Henley predicts the number of centi-millionaires in Asia will grow by 57% in the next decade, eclipsing the number of $100+ million individuals in Europe as well as the U.S.
Australia, New Zealand and Switzerland will continue to be major centi-millionaire destinations. Vietnam, an emerging manufacturing hub, and Mauritius, which recently became the wealthiest per-capita country in Africa, are other hotspots of centi-millionaire migration. What these countries share are strong financial services sectors, attractive real estate markets and burgeoning tech hubs.
Likewise, countries that have been starved of trade and investment flows are competing to attract the assets and talent that ultra-high-net-worth investors can offer. Going beyond broader economic reforms, governments such as those in New Zealand and the United Arab Emirates are taking steps to facilitate investment migration. It’s only a matter of time before other countries follow their lead.
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The sheer extent of current global volatility presents a compelling opportunity for supportive jurisdictions with the potential to provide safety nets for wealthy investors beyond their home countries, and secure much-needed capital and talent through innovative financing solutions such as investment migration programs."
Dr. Juerg Steffen, CEO, Henley & Partners
Drivers Of
Wealth Growth
Strong safety and security
Growth in key markets
Strong competition in essential services
A well-developed and neutral news media
Strong ownership rights
Highly-developed banking system and stock market
Low tax rates
Read The Full
Centi-Millionaire Report Here