Ultra-high net worth individuals experienced significant loss due to the COVID pandemic. Reports that billionaires added profits to their holdings may be partially accurate, but overall, many lost wealth. The cost to them has been estimated at more than $100 billion.
Attacked on several fronts, including health and wealth, these individuals and their families lost revenue for several reasons:
- Luxury spending waned during the pandemic because consumers spent time in isolation.
- Riskier investments plummeted in value, and these are the types of market investments the UHNW individuals prefer.
- Many businesses owned by the rich faced exponential loss. Worked slowed, and consumers spent the money they had on necessities.
Overall, the rise of the pandemic saw the fall of many UHNW individuals’ wealth, depending on their private and public market allocation and exposure. Of course, financial institutions helped some consumers and business owners remain afloat in a turbulent economic sea, but not everyone is as fortunate.
Bouncing back will require more than loans. Meaningful and sustainable recovery will come from the guidance of wealth advisors. Financial institutions that hire top talent in the industry will be best positioned to guide UNHW clients in regaining their former wealth.
Unique solutions for the UNHW
Wealth acquisition does not rely on luck alone. Building significant personal net worth comes from relying on professionals with exceptional talent in a variety of wealth-building industries, such as:
- Equity investments and preferred stock
- Foundations and trusts
- Luxury real estate
Managing the personal wealth of UHNW and VHNW requires that financial companies offer clients a solid portfolio maintained by knowledge professionals. Wealth management necessitates a team approach to wealth acquisition, management, and distribution — now and for generations to come.
Hiring the right persons for this team is critical to the success of the commercial banking industry and private wealth executives.
Top qualities shared by commercial banking and private wealth executives
Predicting market growth and potentiality volatility is similar to predicting the weather. Advisors and forecasters can’t guarantee they’ll get it right every time. Instead, they use their knowledge and experience to identify and follow trends and patterns.
Commercial banking and private wealth executives who excel in their industry share characteristics that make them stand out. UHNW individuals rely on these financial advisors for:
The time to build back personal wealth is now. Firms are scrambling to find private wealth executives who can guide clients into more lucrative ventures. Wealth advisor recruiters are uniquely positioned to help you locate and hire top talent for your financial institution.