Summer Camp for Super Rich Kids: Training Ground for the Future 1%
Private wealth managers line up to coach and court the next generation of financial elites
If you've ever wondered how heirs and heiresses maintain their investment savvy, The New York Times reports on a phenomena among upwardly mobile youth: weeklong networking camps for the super rich.
Financial institutions and consultants are targeting children of wealthy baby boomers to ensure that their next generation of clientele are well versed in areas such as financial literacy, prenuptial agreements and managing family dynamics.
"You're able to learn new skills, which is certainly valuable," explained Jason Franklin, an attendee at a conference sponsored by the Threshold Foundation for young adults from wealthy families. "It's a network of individuals with wealth, and it's a place where you can become comfortable with that part of your identity."
For most attendees, networking with peers is what attracts many to these "Nextgen" events.
Started 10 years ago, Citi Private Bank's summer program has emerged as one of the most prominent with nearly 150 attendees at weeklong programs in New York, London and Singapore. The New York Times writes that the participants, mostly in their 20's, are invited by family financial advisers.
They take part in mock trading exercises and go to Christie’s for a simulated auction to learn about investing in art.
The report explains that the reason these programs are such a popular investment for financial institutions is "fear […] of losing the children of their wealthy clients as future customers."
A report by the Aite Group details what is at stake in this land grab for inherited wealth. According to "The Race for Next Generation Assets," about $40 trillion worth of wealth is expected to pass from one generation to the next over the next several decades.
Other institutions that host these events are business schools and organizations that include: "Family Office Exchange, a profit-making group providing education and consulting to wealthy families; [...] Redwoods Initiative, a nonprofit organization specializing in educating younger members of wealthy families; and the Council on Foundations, a trade association for philanthropic groups".
Though some of these programs are free, some charge a nominal fee of $1,200 to $3,200.