The study of more than 100 people with total estimated family net worth of $77 billion, was carried out by BNY Mellon Wealth Management and Campden Wealth. The report is called The Next Generation of Wealth Holders in the United States 2022. This study is based on quantitative and qualitative data. Between March and July 2022, 102 surveys were collected from UHNW individuals in the US with a family net worth in excess of $30 million , all of whom have recently or will in the future assume control of the family wealth and/or the family business or family office. The generations that dominate the sample are Millennials and Gen X , which account for over three-quarters of all respondents. 

Next Gens’ involvement in the family enterprise gives them firsthand knowledge of its goals. They have an appetite to get more involved, with a preference toward strategic and finance-related positions, ranking investment strategy/management on top , followed by financial planning , and succession planning . 

The study found Next Gens have an interest in easing conflict within the family enterprise. Two thirds believe in the power of regular communication and another 63 per cent seek external support for their succession planning/wealth transfers. Despite respondents’ eagerness to engage, their family members’ roles and responsibilities and concerns over business strategy pose obstacles to a smooth wealth transfer. 

“Having worked over the past two centuries with ultra-high-net-worth individuals and family offices that span multiple generations, in some instances up to six generations, we have seen firsthand a willingness from Next Gen clients to be open to formal education, continued learning and community-building to ensure the successful transfer of wealth,” Ben McGloin, head of advice, planning and fiduciary services, BNY Mellon Wealth Management, said.

Understanding about succession, wealth transfer and preparedness around taking over family businesses are the kind of topics that the UHNW Institute, with which Family Wealth Report is exclusive media partner, has addressed, for example.

The readiness - or not - of UHNW and high net worth individuals in taking on their parents' wealth and business is a regular talking point in the world's wealth industry, including in fast-developing regions such as Asia.

Growth appetite
Despite some concerns about their preparedness, Next Gens have an appetite for growth and vision for shaking up the family enterprise. Once in control, 27 per cent plan to shift towards alternative investments , while another 24 per cent want to integrate new technologies into the family office.

Driven by a desire to diversify from traditional investments and to invest in an area before it becomes mainstream , respondents see value in investing in digital assets/new tech when assuming control. Within the next year, Next Gens plan to increase their exposure to artificial intelligence , fintech , and robotics . When it comes to cryptocurrency, those active in the space plan to stay committed, with more than half willing to maintain and 43 per cent planning to increase investments in cryptocurrency. 

Furthermore, more than half of respondents surveyed think people don’t not have to sacrifice returns to invest sustainably and more than two-thirds said that sustainable investing has become a permanent feature of the investment landscape.