Although the minority of ultra wealthy individuals (those with a net worth of $30m or more) are women, they account for a rising share of worldwide wealth – this has major implications on the industries that serve them. Moreover, it’s important to understand the characteristics of the ultra wealthy. Organizations can leverage this intelligence to create targeted and effective prospecting strategies, leading to a more impactful approach in reaching this demographic and nurturing long-lasting relationships.
So, what makes ultra wealthy women unique? This article examines this group’s characteristics, such as their age profile, wealth source, primary industry, asset holdings and their top interests.
Demographics
Although the number of ultra wealthy women has seen a gradual upward trend over the past five years, women account for only 11% of the world’s ultra wealthy population, according to Altrata’s World Ultra Wealth Report 2022. This upward trend has been influenced by the shifting pattern of global wealth distribution, changing cultural and business attitudes, the growth of female entrepreneurship, and the rising frequency of inter-generational wealth transfers.
What is main source of wealth for ultra wealthy women?
More than half of UHNW women have some form of inherited wealth.
75% of UHNW men have self-created fortunes. This contrasts with a lower 45% of UHNW women having created their own fortunes. About 25% of all UHNW women have attained their wealth purely through inheritance. Among this group, uniquely, the median wealth of women ($67 million) is slightly higher than for men ($63 million). Around 30% of ultra wealthy women have achieved UHNW status via a combination of inheritance and self-made sources.
Where are they holding their wealth?
Luxury assets are the differentiator
A large percentage of the ultra wealthy’s assets are allocated to liquid assets, providing them with a degree of wealth management and protection flexibility, as well as precautionary savings against a highly volatile geopolitical backdrop, as well as reserves to draw on for potential commercial investments and philanthropic initiatives.
The biggest gender difference in wealth holdings is the share allocated to real estate and luxury goods, which, at 13% for UHNW women, is three times greater than for their male counterparts.
Women account for 70 of every 100 UHNW owners of luxury watches and jewelry, assuming an equal number across genders.
Assuming an equal number across genders, UHNW women are slightly more often the owners of high-end art, and account for 70 of every 100 UHNW owners of luxury watches and jewelry. Ownership of a secondary residence worth more than $5m is equally common among such men and women. However, regardless of ownership, partners and other family members are invariably involved in the decision-making around many of these purchases, and this should feed into the marketing strategies among providers of such luxury goods.
What are their top interests and hobbies?
Philanthropy leads by a large margin among UHNW women
When looking at the top interests and hobbies of ultra wealthy women, philanthropy is by far this group’s biggest interest. This makes sense since a strong focus of some ultra wealthy women is working with non-profit and social organizations, reflecting wider interests in societal issues such as welfare, inequality, children, and the environment. Other favorite interests are sports, art and education.
The Impact of Personalized Outreach
Understanding ultra wealthy women in the context of their wealth status and their own peer group is essential to successful prospecting strategies. Organizations can leverage insights into their interests and hobbies, use this information to develop more personal outreach, and secure greater engagement and stronger connections with this key audience.
If you’re interested in finding more ways to engage with ultra wealthy women, Altrata can help. With our CRM integrations, database screenings, and modeling capabilities, you can quickly build custom and personalized outreach. These tools will enable you to create a tailored approach that resonates with your target audience, helping you connect with them in a meaningful and impactful way. Get in touch with a member of our sales team today.