The fifth edition of the BNP Paribas Wealth Management Global Entrepreneur Report has been published; it unveils the preferred private investments of the most successful international entrepreneurs - Elite Entrepreneurs - and the trends shaping their portfolio allocation choices.
The main points include:
1. Equities are Elite Entrepreneurs’ top portfolio choice: responding enthusiastically to rising stock markets, they invested more in equities (20,2%).
2. 85% of Elite Entrepreneurs actively support other entrepreneurs through private investments into high-potential companies. HNW business owners favour private equity (63% have used PE investment vehicles). The most enthusiastic advocates of private investments are Millennials, who are twice as likely as Baby Boomers to have invested in venture capital funds, start-ups or to hold angel investments.
3. Technology comes out as the top growth catalyst for future investments: 55% of Elite Entrepreneurs currently invest in tech companies, more than any other sector. The appetite for tech is most voracious in Belgium (79%), India (74%) and Singapore (70%).
4. Responsible investing is a top five growth sector especially for the wealthiest: 37% of UHNWs believe responsible investing represents one of the most promising opportunities for the coming five years: Sustainable & Responsible Investments (SRIs) are ranked second for their investment potential. Those based in China, the UK and Spain are the most convinced.
Vincent Lecomte, co-CEO of BNP Paribas Wealth Management, explained: “We already knew how Elite Entrepreneurs keep their entrepreneurial mindset when it comes to their private investments. However, this study demonstrates a clear acceleration: these entrepreneurs want to have an impact through their investments as they have with their company. The rise of private investments and SRIs are a clear consequence of this growing expectation.”
“While their search for impact has become more strategic, entrepreneurs are still looking for investment performance.” added Sofia Merlo, co-CEO of BNP Paribas Wealth Management. “We measured that with this year’s unprecedented interest of Elite Entrepreneurs for stock markets. That’s why we continue to invest in our capacity to advise them with our Chief Investment Officers’ network based in the USA, Europe and Asia, leveraging a selection of 10 annual investment themes.”
The research methodology, powered by Scorpio Partnership, involved an online survey programme with 2,763 multi-millionaire entrepreneurs in 23 countries, representing a total net worth of USD 16 billion.