The fifth edition of the BNP Paribas Wealth Management Global Entrepreneur Report unveils the preferred private investments of the most successful international entrepreneurs - the Elite Entrepreneurs - and the trends shaping their portfolio allocation choices.
Equities are Elite Entrepreneurs’ top portfolio choice:responding enthusiastically to rising stock markets, they invested more in equities (20,2%).85% of Elite Entrepreneurs actively support other entrepreneurs through private investmentsinto high-potential companies. HNW business owners favor 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.
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%).
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:Vincent Lecomte, co-CEO of BNP Paribas Wealth Management, explained:
“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.