Facebook floatation to create 970 millionaires

Facebook’s pending IPO will create 970 millionaires including 165 super rich Ultra High Net Worth Individuals, according to new research by the wealth intelligence service WealthInsight.

In depth analysis reveals that the Facebook Elite UHNWIs (those worth more than $30m) will each have an average wealth of over $225m. Though the prospect of immediate and huge spending sprees is unlikely due to restrictions on the exercise of stock options and other shares.

WealthInsight has created a unique proprietary database of 160 Facebook employees, investors and other beneficiaries packed with data and biographical detail.

According to WealthInsight analyst Andrew Amoils: “This floatation will create an unprecedented number of new super rich people. And despite the success of the film The Social Network and the company’s media profile, no-one knows much about the Facebook Elite beyond the senior management leaders. That’s why we have pulled out all the stops to research these individuals”.  

The research is based on the valuation being placed on the floatation of Facebook which values the company at a multiple of 79-99 times earnings, compared with 13.7 and 18.6 for Apple and Google, respectively.

For more information on the Facebook Elite and to see how WealthInsight generated these findings please download our attached research paper:

http://www.vrl-financial-news.com/pdf/The%20Facebook%20Elite%20(2).pdf

WealthInsight releases latest global UHNWI numbers; UHNWIs hold 1.5% of wealth in boutique investment products such as art, wine and classic cars

Of the world’s 122,000 ultra-high-net-worth individuals (UHNWIs) China and India are home to 6.5% and 1.3%, respectively. The number of UHNWIs in India and China is increasing rapidly and will surpass the numbers found in leading European countries over the next decade, according to WealthInsight, the London based global wealth consultancy. 

WealthInsight has also found that the world’s 122,000 UHNWIs have an average wealth of US$121 million and together hold a remarkable US$14.8 trillion – almost equal to the US’s 2011 GDP.

Collectable assets – such as art, wine, classic cars, watches and jewellery – account for 1.5% of the total wealth of the world’s UHNWIs, or US$1.8 million per person. 

“We expect collectables to become an increasingly important part of the asset allocations of the world’s UHNWIs, especially in Asia, where there is robust growth in interest in this asset class. We’ve also seen an uptick in interest among Asian Ultras for yachts, super-yachts, private jets and private planes,” said Andrew Amoils, a senior analyst with WealthInsight.

While Asia is important and will increasingly be so, WealthInsight research underscores the importance of the developed world, home to the majority of the world’s UHNWIs: the US, with 40,000 UHNWIs, has one third of the global total and California’s 7,000 UHNWIs alone account for about 6%.

Similarly, the UK, France and Germany together are home to 21% of the world’s UHNWIs.

Ollie Williams, senior analyst and research manager of WealthInsight’s HNWI Database remarks: “Everyone is talking about China, India and Asia; it’s an amazing growth story and the Ultra wealth creation is truly impressive. But we believe Europe, Australia, Japan and the US will still be the pillars of the wealth industry and major consumers of big-ticket collectables and luxury goods. Furthermore, we see huge potential for the creation of large numbers of new UHNWIs in these countries. For example our early research shows that the Facebook IPO alone will generate scores of new UHNWIs.”