High‑Net‑Worth Individuals (HNWI)

Definition

A high‑net‑worth individual (HNWI) is generally defined as someone holding at least $1 million in liquid financial assets after liabilities. Liquid assets typically include cash, stocks, bonds, and other investments that can be readily converted to cash. Personal assets that are difficult to sell—such as a primary residence, fine art, and collectibles—are usually excluded from this calculation.

How HNWIs Are Measured

• Threshold most commonly used: ≥ $1 million in liquid financial assets.
• Measurements often exclude illiquid personal property and the primary residence.
• Financial institutions and regulators may use different cutoffs for services, reporting, and investor accreditation.

Common Paths to HNWI Status

People become HNWIs through a variety of routes:
– Long‑term saving and investing (earnings reinvested, capital appreciation)
– Business ownership and sale of a company
– Inheritance or gifts
– Large one‑time events (e.g., settlements, insurance payouts, lottery)
– Investment returns (private equity, public markets, real estate)

Categories and Subclasses

HNWI classifications help institutions tailor services:
– Sub‑HNWI: $100,000 to $1 million in liquid assets
– Very HNWI: $1 million to $5 million
– Mid‑tier millionaires: $5 million to $30 million
– Ultra‑HNWI (UHNWI): > $30 million

These bands reflect differences in investment opportunities, tax and estate planning needs, and the complexity of wealth management.

Benefits and Privileges

HNWI status commonly opens access to specialized financial products and services:
– Dedicated private or wealth management teams and personalized portfolios
– Separately managed accounts instead of pooled mutual funds
– Access to alternative investments (hedge funds, private equity, venture capital), IPO allocations, and certain private placements
– Estate planning, sophisticated tax planning, and concierge banking services
– Preferential pricing, reduced fees, and invitation‑only events or investment opportunities

Many of these opportunities are restricted to accredited or qualified investors, categories that HNWIs often meet.

Geographic Distribution and Recent Trends

As of December 2024 (Capgemini World Wealth Report):
– North America: ~8.4 million HNWIs (largest region and strongest growth, +7.3% year over year)
– Asia‑Pacific: ~7.6 million
– Europe: ~5.7 million
– Middle East: ~900,000
– Latin America: ~600,000
– Africa: ~200,000

Global highlights:
– Total HNWI population rose ~2.6% from 2023 to 2024.
– Combined HNWI wealth totaled about $90.5 trillion.
– Ultra‑HNWI population reached ~234,000 (≈6.3% increase).
– Mid‑tier millionaires counted ~2.16 million; the largest group (“millionaires next door”) numbered ~21.02 million.

Implications for Financial Services

• Wealth managers actively target HNWIs because preserving and growing large, concentrated assets requires bespoke advice and generates higher revenue per client.
• Demand for complex services—tax optimization, cross‑border planning, private market access—drives product innovation and specialized advisory teams.
• Regulatory and accreditation rules influence which investment opportunities are available to different HNWI bands.

Bottom Line

An HNWI typically has at least $1 million in liquid financial assets and access to financial products and services not available to most investors. Subdivisions within the HNWI population reflect differing needs and opportunities, from personalized wealth management to private market access. Geographic and cohort trends influence global wealth distribution and the services financial institutions design for wealthy clients.

Sources

• Capgemini, World Wealth Report 2025 (data as of December 2024)
• Public financial and regulatory sources on investor qualification and liquidity definitions