Billionaire wealth returned to growth in 2016, led by the growth in Asia
Billionaire wealth returned to growth in 2016, led by the growth in Asia, with the total global wealth of billionaires rose by 17% to USD 6.0 trillion, double the rate of the MSCI AC World Index, according to UBS/PwC Billionaires Report 2017.
Asianbillionaires outnumber their US counterparts for the first time, mostly drivenby China’s entrepreneurs. If the current trend continues, the total wealth ofAsian billionaires will overtake that of their counterparts in the US infour years.
Asiais creating one new billionaire every other day. The total number of Asianbillionaires rose by almost a quarter to 637, with 162 new entrants. China hasthe highest number of 101 new billionaires, increasing to 318.
Thewealth of Asian billionaires grew by almost a third (+31%) in 2016, up from USD1.5 trillion to USD 2.0 trillion. However, US still maintains the largestconcentration of billionaire wealth, with 563 billionaires, increasing from USD2.4 trillion to USD 2.8 trillion in 2016.
Billionairewealth grew only slightly in Europe, with 342 European billionaires at the endof 2016.
Incontrast to the West, majority of Asian billionaires are taking their companiespublic. In Asia, most wealth is self-made. The Asian, and especially theChinese, favour listing young companies quickly on stock markets. In 2016, 63%of Asia’s 568 billionaire-linked companies were publicly listed.
Companiesin sectors such as technology are linked to billionaires are powering the neweconomy, as well as many of those lifting living standards in emerging markets.1,542 billionaires are responsible for businesses that employ a workforce equalto that of the working population of the UK, suggesting that growingentrepreneurial wealth has been accompanied by expanding employment.
Billionairesare leveraging their networks to reach new heights. Networks are playing anincreasingly powerful role, with families working together on new ventures andyounger entrepreneurs using contacts to orchestrate deals. Betterconnectivity is helping them to work together more effectively. Across theworld, elite philanthropic and impact investing networks are emerging.
Billionaires also play an increasingly important role in art and sports. Besides philanthropy, billionaires are creating alternative legacies through their cultural pursuits. They are becoming more engaged in the arts and, increasingly, investing in sports clubs, helping the public to access art collections and bringing communities together through sport.