Fifty-two heirs to lavish fortunes luxuriate in sleek splendor at the Four Seasons.
They sip designer lattes and speak the language of wealth. The talk is of money, noblesse oblige, technology, Formula One. At lunchtime, out comes chilled rosé, with a tasting led by Jon Bon Jovi’s son Jesse.
Welcome to Camp Rich.
Here, not far from Wall Street, Swiss banking giant UBS Group AG has convened its annual Young Successors Program (YSP), a three-day workshop for people who were born loaded. Part tutorial and part self-actualization exercise, the event is designed to stamp the UBS brand on the minds of the next generation of the ultra-wealthy—in essence, to hook them while they’re young.
With an average age of 27, attendees at the June YSP and other Next Gen functions hosted by the likes of UBS, Citi Private Bank, Morgan Stanley and Credit Suisse will one day rank among the world’s most sought-after clients. Or, at least, that’s the hope. In an era of extreme affluence, elite money managers are vying for the hyper-rich as never before. The world is poised for a generational shift in wealth that will ripple through global business and financial markets, and the banks can’t afford to take any accounts—current or future—for granted.
On one level, these programs—also held in cities such as Zurich, London and Singapore—represent high-end networking opportunities where the young and rich can be young and rich together.
The intimacy “allows them to let their guard down for a change,” said John Mathews, head of private-wealth management and ultra-high net worth for UBS Wealth Management USA.
The gatherings also allow private banks to show off the broad range of services they offer, which is crucial as investing becomes largely commodified—and in any case, isn't a topic that inspires passion among millennials.
So while one of Citi Private Bank’s Next Gen programs offers a day on financial theory and strategy, it also devotes a day to entrepreneurship and innovation and another to estate planning.
“We want young ones to understand that, as a scion of a wealthy family with a business legacy, you have responsibilities,” said the aptly named Money K., who heads up Citi's global Next Gen programs from Singapore. “Eventually you will inherit, so how should you think about it, and what are the rules on estate planning in different jurisdictions around the world?''