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A high net worth individual (HNWI) is a person with a high net worth
Net worth

In business, net worth is the total assets minus total outside liability of an individual or a company . For a company, this is called shareholders' equity and may be referred to as book value....
. In the private bank
Private bank

Private banks are banks that are not incorporation . A non-incorporated bank is owned by either an individual or a general partner with limited partner....
ing business, these individuals typically are defined as having investable assets (financial assets not including primary residence) in excess of US$1 million. The number of high net worth individuals worldwide is estimated at 9.5 million. HNWI wealth totals US$37.2 trillion, representing an 11.4% gain since 2005. As explained below, the U.S.






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A high net worth individual (HNWI) is a person with a high net worth
Net worth

In business, net worth is the total assets minus total outside liability of an individual or a company . For a company, this is called shareholders' equity and may be referred to as book value....
. In the private bank
Private bank

Private banks are banks that are not incorporation . A non-incorporated bank is owned by either an individual or a general partner with limited partner....
ing business, these individuals typically are defined as having investable assets (financial assets not including primary residence) in excess of US$1 million. The number of high net worth individuals worldwide is estimated at 9.5 million. HNWI wealth totals US$37.2 trillion, representing an 11.4% gain since 2005. As explained below, the U.S. Securities and Exchange Commission has promulgated a different definition of "high net worth individual" for regulatory purposes.

Ultra-High-Net-Worth Individuals


UHNWI refers to Ultra-High-Net-Worth Individuals, individuals or families who have at least US$30 million in investable assets. The number of ultra high net worth individuals worldwide is estimated at about 95,000. The exact dividing lines depend on how a bank wishes to segment its market; for example, the term Very High Net Worth Individuals can refer to those with assets between $5 million and $50 million, with Ultra High Net Worth Individuals only those with above $50 million.

Banking and Finance

Most global banks, such as Credit Suisse
Credit Suisse

The Credit Suisse Group is a financial services company, headquartered in Zurich, Switzerland. Credit Suisse was founded by Alfred Escher in 1856 under the name Schweizerische Kreditanstalt ....
, Deutsche Bank
Deutsche Bank

Deutsche Bank Aktiengesellschaft is an international Universal bank with a broad private clients franchise, headquartered in Frankfurt am Main, Germany....
 or UBS, have a separate Business Unit with designated teams consisting of client advisors and product specialists exclusively for UHNWI. Because of their extreme high net worth and the way their assets were generated, these clients are often considered to have semi-institutional
Institutional investor

Institutional investors are organizations which pool large sums of money and invest those sums in companies. They include banks, insurance companies, retirement or pension funds, hedge funds and mutual funds....
 or institutional like characteristics.

Retail


Brands in various sectors, such as Bentley
Bentley

Bentley Motors Limited is an English manufacturer of automobiles founded on 18 January 1919 by Walter Owen Bentley . Mr. Bentley had been previously known for his range of Rotary engine aircraft engines in World War I, the most famous being the Bentley BR1 as used in later versions of the Sopwith Camel....
, Maybach and Rolls-Royce
Rolls-Royce Motor Cars

Rolls-Royce Motor Cars is an English manufacturer of luxury automobiles based in Goodwood, England. It is the current producer of Rolls-Royce branded automobiles, whose historical production dates back to 1904....
 in motoring, actively target UHNWI and HNWI to sell their products. Figures gathered by Rolls-Royce suggest there are 80,000 people in the UHNWI category around the world. They have, on average, eight cars and three or four homes. Three-quarters own a jet aircraft and most have a yacht
Yacht

A yacht is a recreational boat. It designates two rather different classes of watercraft, sailing and power yachts. Yachts are differentiated from working ships mainly by their leisure purpose....
.

SEC regulations


The U.S. Securities and Exchange Commission requires all SEC-registered investment advisers to file periodically a report known as Form ADV. Among other things, Form ADV requires each investment adviser to state how many of his clients are "high net worth individuals." The Form ADV Glossary of Terms explains that a "high net worth individual" is an individual with at least $750,000 managed by the reporting investment adviser, or whose net worth the investment adviser reasonably believes exceeds $1,500,000 (or who is a "qualified purchaser" as defined in section 2(a)(51)(A) of the Investment Company Act of 1940). The net worth of an individual for SEC purposes may include assets held jointly with his or her spouse. Unlike the definitions used in the financial and banking trade, the SEC's definition of HNWI would include the value of a person's verifiable non-financial assets, such as a primary residence or art collection.

See also

  • Millionaire
    Millionaire

    A millionaire is an individual whose net worth or wealth exceeds one million units of currency. It can also be a person who owns one million units of currency in a bank account or savings account....
  • Billionaire
    Billionaire

    A billionaire is a person who has a net worth of at least one 1000000000 units of currency, such as United States dollars , U.K. pound sterlings or euro ....
  • Swiss bank
  • Wealth
    Wealth

    Wealth is an abundance of valuable material possessions or resources. The word is derived from the old English wela, which is from an Indo-European word stem....
  • Global assets under management
    Global assets under management

    Global asset allocation or Global assets under management consists of pension funds, insurance companies and mutual funds. Other funds under management include private wealth and alternative assets such as hedge funds and private equity....