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For the first time in almost a decade billionaires globally accumulated more wealth through inheritance than entrepreneurship, according to a report by UBS. Over the 12 months to April, 53 heirs inherited $150.8 billion, surpassing the $140.7 billion amassed by 84 new self-made billionaires during the same period. UBS further found that this wealth transfer trend is gaining momentum as many billionaire entrepreneurs age, with an estimated $5.2 trillion set to be passed to their children in the next two decades. In this report, UBS also highlights this certain wealth transfer has highlighted a shift in investments, with billionaire heirs more likely to invest in sectors such as clean energy and artificial intelligence.

The report also reveals that Europe led the growth in billionaire wealth for the first time, driven by a post-pandemic shopping surge benefiting luxury goods companies. The subdued state of the IPO market in 2022 and early 2023 limited opportunities for entrepreneurs to list their businesses and increase their wealth. UBS predicts this "staggering" transfer of wealth to younger generations to create significant opportunities but also warns of potential risk. The wealth change may also impact charitable giving, as heirs are less likely to prioritize philanthropic goals compared to first-generation billionaires, leaning more toward impact investing.

UBS goes on to discuss that this shift in billionaire wealth dynamics is extremely interesting in understanding the broader economic, geopolitical, and policy uncertainties, impacting entrepreneurial wealth creation. UBS suggests that government incentives promoting the energy transition and higher defense spending could contribute to the improving fortunes of industrial billionaires. This change in wealth is important to keep an eye on especially for young adults like myself joining the workforce in the next coming months. By tracking new industries in which the wealthy jump too I can align my profession to better adapt to the evolving preferences and priorities of the new generation of billionaires and maximize my returns.