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The so-called “Great Transfer of Wealth” is one of the most important economic phenomena of our time. More than $100 trillion is projected to change hands across generations between now and 2048, according to data from Cerulli Associates. Of this figure, about 85 billion will be inherited specifically by generations X and millennials. This massive redistribution is transforming not only the economy, but also how wealthy families manage their wealth.
A new mentality when inheriting wealth
As millennials (ages 27 to 42) and Generation assets of the ultra-wealthy.
According to Nirbhay Handa, CEO of Multipolitan, these generations are less motivated by simple accumulation of wealth and more interested in creating a positive impact on society. Issues such as climate change, diversity, health and sustainability are now key priorities in their investment decisions.
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Martin Roll, an expert on family offices and businesses, points out that this change reflects clear generational values. While previous generations tended to focus on maximizing profit, millennials and Gen X are hell-bent on balancing progress and profits.
This mentality is leading to a marked increase in investments in companies that promote environmental sustainability goals, such as Oatly or Beyond Meat, to the detriment of traditional industries such as fossil fuels.
Family offices as innovation centers
Under the management of new generations, family offices have ceased to be conservative spaces focused on passive investments. They have evolved into innovation centers with an active and progressive approach. These offices seek to lead changes by investing directly in startups and emerging technologies.
According to Martin Roll, today it is common for them to invest in areas such as climate technologies, EdTech, water treatments and renewable energy.
Additionally, many families are diversifying their portfolio beyond the traditional businesses that built their initial fortune. For example, if a family amassed its wealth from chemicals, new generations may choose to move toward industries with lower environmental impact or those that solve important global problems. Roll points out that this flexibility encourages innovative investments aligned with the personal values of the heirs.
The challenges of a conscious generation
The transformation in investment priorities has not been a simple whim, but a response to current global events. In Handa’s words, “This generation has seen wars, the clear effects of climate change and the scarcity of clean water. As a result, they are more determined to focus on issues aligned with their values.”
Phenomena such as more frequent hurricanes, floods and other environmental disasters have made the urgency for action palpable. What decades ago was an abstract problem is today a reality visible to everyone.
Looking to the future
Ultimately, this new era of wealth transfers is not only redefining the concept of family legacy. It is also making a tangible difference by redirecting billions of dollars toward sectors seeking to solve the great challenges of our time, such as climate change, gender equity, and access to essential services.
“The way everything was done before will not be the same in the future,” says Handa, who firmly believes that this process is democratizing and driving necessary changes in the global economy. As Roll points out, “Money will now do important jobs. “It will be reinvested in technology and in addressing the great challenges of our time.”
This generational revolution in the management of wealth not only affects those who inherit it, but also the entire world. Gen
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