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CRE Insights Blog

Ultra-Affluent Clients (Switzerland)

Hello. This is Richard Wilson coming to you from the Swiss Alps here in Switzerland and also the Family Offices Group. And what I wanted to share with you today is a definition of ultra-affluent clients. Oftentimes it’s referred to as UAC. Ultra-affluent clients is the term used by Family Offices. People that sell $50,000 watches, super yachts, exotic cars, and really is a term that’s becoming more and more popular, especially within the family office industry. I just wanted to make sure you knew exactly what it was. Typically they’re referring to people that have 20 to $30 million in net worth, sometimes a little bit more than that, and obviously would include everybody above that who has $1 billion net worth, et cetera, would be included in that umbrella of ultra-affluent clients. And I just want to provide the four main ways that people become ultra-affluent clients.

The first way is from selling a business. If I grew a hedge fund and sold it to Goldman Sachs and they bought me out, I could become ultra affluent that way. If I grew my hedge fund and took it public and offered stock to the public, I’m basically selling a part of the business effectively and I could become ultra affluent that way.

Another way is if you inherit money, if one of your parents or relatives is an ultra-high net worth individual, you could become an ultra-high net worth individual yourself, obviously if you inherit a lot of wealth from them.

The third way is if you’re a celebrity, somebody such as Jennifer Aniston or Brad Pitt, people such as Donald Trump have made their wealth in commercial real estate but also leveraged celebrity to make more wealth. That can create ultra wealthy individuals.

And the final popular way of becoming ultra affluent is through sports and becoming an athlete. People like Michael Jordan, people like Tiger Woods, people in Europe and South America and around the world who play soccer, are all different sports that you can become ultra affluent just through the sponsorships and not your pay as a professional athlete.

So those are the most common four ways of becoming ultra wealthy. And just remember the ultra-affluent client typically means you have 20 or $30 million of wealth or more.

This is Richard Wilson coming to you from the Family Offices Group, and thanks for joining me.

About the author

Richard Wilson