What Is a UHNW (Ultra-High-Net-Worth)? Our definition
The term UHNW, or Ultra-High-Net-Worth, is used to describe individuals or families with investable assets exceeding $30 million. This classification is employed within the financial and wealth management industries to differentiate the wealthiest clients from other categories, such as High-Net-Worth (HNW) individuals, whose assets commence at $1 million. The UHNW designation serves to highlight the distinctive financial circumstances and requirements of these individuals, who typically possess substantial and diversified portfolios. Many UHNW’s can be found on the Forbes list.
It is not uncommon for UHNW individuals to hold their wealth in forms that extend beyond cash or liquid assets. Such individuals may also possess a variety of assets, including ownership of private companies, significant real estate holdings, art collections, hedge fund investments, private equity stakes, and even assets in emerging technologies or cryptocurrencies. The management of such a diverse array of holdings necessitates the input of specialised expertise, sophisticated financial planning and, in many cases, the input of a dedicated team to oversee the various aspects of wealth management.
This level of wealth presents a duality of opportunity and challenge. For instance, UHNW individuals often engage in global operations, with assets and business interests dispersed across multiple jurisdictions. Consequently, the optimisation of taxation becomes a significant issue, necessitating a comprehensive grasp of international tax legislation and agreements. Succession planning is another crucial area of concern for many UHNW families, as they seek to preserve their wealth across generations. This necessitates the implementation of detailed estate planning, the establishment of appropriate trust structures, and the creation of effective governance frameworks to ensure long-term stability.
Family offices are particularly relevant to UHNW individuals and families. These private entities provide a centralized approach to wealth management, offering services such as investment oversight, tax coordination, philanthropic planning, and lifestyle management. In contrast to standard financial advisors, family offices are able to tailor every aspect of their service to the specific needs and values of the family, creating bespoke strategies that reflect the unique circumstances and objectives of the family in question.