Unpopular child billionaires beat self-made tycoons for first time

Bernard Arnault (second from left) is the world's third richest man, worth an estimated $166 billion, and is grooming his children for succession . Photo: GABRIEL BOUYS/AFP

Billionaires earned more from inheritance than from entrepreneurship for the first time last year, according to one of the world's largest studies of the super-rich.

Sons and daughters of tycoons earned, according to the annual billionaires report compiled by Swiss bank UBS, more from handouts from parents than businessmen from their companies.

Fifty-three heirs inherited $150.8 billion between them last year. That's more than the 84 new self-made billionaires who have amassed $140.7 billion.

This generation of Baby Boomer entrepreneurs and investors are beginning to pass their wealth on to their families through inheritance or inheritance.

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Billionaires who inherited their fortunes last year include Red Bull heir Mark Mateschitz. He became Europe's richest millennial after the death of his father Dietrich last October. Mateschitz, 31, inherited a 49% stake in the energy drink group and is now worth an estimated $20.5 billion, according to Bloomberg.

Shapoor Mistry, a 59-year-old Indian businessman whose family owned 18, A 4% stake in steel group Tata Sons, he also inherited billions after the death of his father Pallonji in June 2022. Mistry's net worth is estimated at $32.3 billion. .

UBS data shows that so-called «bastards» are now part of the billionaire class.

The term «nepotism-child» — short for «nepotism-child» — is used to describe people whose success is believed to have been contributed to by their famous parents.

The phrase has become popular online and in the media in recent years and has been used to refer to celebrities including model Hailey Bieber, daughter of actor Stephen Baldwin. Earlier this year, Ms Bieber was pictured wearing a T-shirt reading «nepo baby» in connection with the discourse.

2022 marked the first time that inheritance became the largest source of income for billionaires in the world. For nearly a decade now, UBS has been compiling its report on the world's richest people.

Maximilian Kunkel of UBS Wealth Management says UBS is likely to grow only as a source of income for the super-rich.

< p>Mr Kunkel said: “This major transfer of wealth has been expected for some time. It will probably gain momentum. More than 1,000 self-made billionaires are expected to pass on $5.2 trillion to their heirs over the next 20 to 30 years.”

Lorenzo Bertelli, Prada's 35-year-old chief executive, is among those who expects the transfer of a billion dollars. He is the son of Miuccia Prada, the granddaughter of the founder of the Italian fashion house, and Patrizio Bertelli, the former co-CEO of Prada. The couple, both in their 70s, are worth more than $10 billion.

Other famous heirs include the five children of Bernard Arnault, the French luxury magnate behind Louis Vuitton owner LVMH. Arnault, 74, is the third richest person in the world, with an estimated fortune of $166 billion. He is preparing his children for succession in business.

The number of billionaires in the world rose 7% to 2,544 over the past year. This year, according to UBS, their combined wealth rose 9% to $12 trillion, almost five times the size of the British economy.

Those who invested in technology and healthcare saw the biggest increases in their wealth for the last year. over the past decade, the bank said.

Mr. Kunkel said a new generation of billionaires who inherited their wealth wants to invest in clean technology and health care in hopes of improving the world.

The generational shift comes at a time of growing political pressure on the billionaire class. In the United States, President Joe Biden has proposed introducing a 25 percent wealth tax on billionaires.