Turning heirs into top clients of tomorrow
Banking giants set up networking for next generation of wealthy
● They sip designer lattes and speak the language of wealth. The talk is of money, noblesse oblige, technology, Formula One (F1). 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 has convened its annual Young Successors Programme (YSP), a three-day workshop for people who were born loaded. Part tutorial and part self-actualisation 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 programmes — 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 isn’t a topic that inspires passion among millennials.
“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 programmes 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?”
Invitees to the June UBS confab had at least one thing in common: a family account with the bank well into, or above, the eightdigit mark. They arrived from around the world and included seven sets of siblings.
Fusty these affairs are not. For one cocktail reception, UBS chose a penthouse with a terrace atop the Beekman Hotel, a renovated Gilded Age office building. Brown Brothers Harriman & Co — about as old-school as it gets, with a history going back to 1818 — hosted 40 offspring of its best clients at the
We want young ones to understand that, as a scion of a wealthy family, you have responsibilities Money K
Head of Citi’s global Next Gen programmes in Singapore
chic Soho Grand last year. Morgan Stanley’s private wealth management business went for a different hipster vibe, taking over the bowling lanes at Lucky Strike in Manhattan for 100 attendees of its Next Gen programme in May.
Since many millennials want to run their own businesses and like to learn from peers, Morgan Stanley included a Shark Tank-style session with young social entrepreneurs pitching to a panel.
“Socially responsible investing is a theme that resonates,” said Mandell Crawley, head of private wealth management at the bank.
Personal branding also clicks with the younger generation, so Crawley headed up a discussion on “defining your narrative”. Breakout talks included creating “a powerful package called ‘you’”.
Jesse Bongiovi shared some thoughts during one of the lunches, along with the wine he launched with his Grammy-winning father. The 23-year-old got inspiration on marketing the rosé when he attended last year’s programme.
Fast cars entered the mix too. Nico Rosberg, 33, an F1 champion, spoke about his focus on cutting-edge start-up investing.
The informal mingling has led participants to become best friends, marry, holiday together and invest alongside each other, the banks say.
However, sparking communication between the heirs and their parents may yield the biggest dividends for wealth managers.
“I went home and asked my parents a million and one questions about how things are set up,” Bongiovi said.