Changes in the Private Wealth Marketplace

Abstract

Services provided to wealthy Americans has grown into a multi-billion dollar industry that will soon experience a growth rate that exceeds the defined benefit market, defined contribution market and the mutual fund industry. The article aims to provide additional insight into what will be driving growth and opportunities, as the private wealth marketplace develops. The author argues that the marketplace will be influenced by factors that have matured over the past century, and more importantly, those created in the last few years. He examines how each of these factors will begin having a strong influence on the private wealth market over the next 10 years as individuals move through, and into, the Wealth Building and Retirement stage of life. The analysis starts with the institutional pension market and continues by identifying structural changes in population distribution, underlying economic changes and new wealth enhancers that will result in accelerating growth of the private wealth market. Wealth enhancers such as stock options, venture capital, private equity and others are structurally altering the private wealth marketplace and will dramatically alter the way in which services are offered. The article concludes with a “market defined” segmentation and the importance of creating competitive advantage in distinguishing services provided to the marketplace.