Wealth managers, it’s time to put on your cowboy boots and your sunglasses.
Ask a wealth management firm where they plan to open new offices and odds are they’ll include Texas and California.
Expect more of the same in 2016 - much more.
According to Capgemini's U.S. Wealth report for 2015, half of the fastest growing metropolitan areas measured for both population and investable dollars of high-net-worth individuals are located in those two states. The leader is Houston, where wealth grew over 15%. HNWI are considered people who have more than $1 million to invest.
“It is not a coincidence that wealth firms, be they offices of large established players or new entrants such as family offices, are building presence in these markets," says David Wilson, head of Capgemini Financial Services strategic analysis group.
"These markets are some of the most dynamic for wealth creation in the U.S.," Wilson explains. "They include the dynamic technology scene in the Bay Area and the robust economies we see in Houston and Dallas, which are not just about oil and gas. These markets are all benefitting from robust economic growth, low unemployment and strong performing asset classes such as real estate.”
Indeed, impressive gains from these major metropolitan areas led the U.S. to record wealth growth in 2014. According to Capgemini, the number of high-net-worth individuals rose 8.6% to 4.4 million and their combined investable wealth increased to $15.2 trillion, also an all-time high.
What follows, in order, are the fastest growing cities for wealth in the United States. To see a slideshow version, click here. -- Charles Paikert