Investment Migration: A Must-Have for Centi-Millionaires

By Basil Mohr-Elzeki, Managing Director at Henley & Partners USA

Over the past two decades, the number of centi-millionaires (or ‘centis’), defined as those with more than USD 100 million in investable assets, has grown remarkably, with their global figures more than doubling. In today’s uncertain world, this class of super-rich is avidly looking to alternative residence and citizenship by investment programs as a key to unlock access to more of the world. Tracking a country’s centi-millionaire population is a useful tool to gauge the state of its private wealth sector, which some economists consider a sound reflection of an economy’s robustness and resilience.

The appeal of optionality in a world of volatility

This segment of the population is seeking the optionality of choosing where they live, work, and invest. Building a portfolio of investment migration solutions has become a priority for centis who want to protect their families, businesses, and wealth from sudden changes in circumstances in their home countries, whether those be fiscal, socio-political, climatic, or economic. As conflicts escalate globally, wealthy families are hard-pressed to ensure their access to safe, secure, and politically stable countries. They seek jurisdictions that grant their children a good quality of life, world-class healthcare, and top-tier education.

Interestingly, according to our research on where centi-millionaires study, just under a quarter have graduated from a mere 20 universities, mostly situated in the USA, although a lesser proportion did attend renowned universities in France and the UK. Parents are well aware that investing in their children’s future has invaluable returns as it sets them up for a better future. This is one significant reason why a growing number of this elite segment have applied for the US EB-5 visa, which would enable them to reside in the USA.

The Global South is set to boom

In recent months, many affluent US Americans have made the decision to leave the USA or prepare to by obtaining alternative residences and citizenships, but this shift does not alter America’s status as a sought-after home of the wealthy from across the globe. In fact, according to Henley & Partners’ Centi-Millionaire Report 2023, 38% of all centi-millionaires live there. According to the report, New York City, the Bay Area, and Los Angeles are the Top 3 cities with the highest number of resident centi-millionaires, at 775, 692, and 504, respectively. London is 4th with 388 centis, but many wealthy individuals have been leaving the UK post-Brexit, and London has lost 4.4% of its centi-millionaires since 2022.

Almost half of the top 10 wealth magnets in the world are in Asia, with Beijing (365 centis), Shanghai (332), Singapore (330), and Hong Kong (SAR China) (305) taking 5th, 6th, 7th, and 8th place, respectively. Over the next 10 years, it is anticipated that Asia will fortify its position as a continent of affluence. China’s centi-millionaire populations are forecast to grow by 95% in the city of Hangzhou and by 88% in Shenzhen. India is also estimated to see a sizable growth in its centi-millionaire numbers, with Delhi’s estimated centi growth sitting at 85%.

Riyadh and Dubai in the Middle East are also forecast to experience a boom in their centi numbers of 85% and 78%, respectively, as more investors and entrepreneurs set up bases in Saudi Arabia and the UAE. Looking to the future, the Global South will likely see an uptick in the size of its centi population.

Investment migration as a strategy to attract centi-millionaires

Investment migration programs are crucial components of governments’ strategies to attract wealthy families and, consequently, finance their economies’ growth. Over two thirds of the centi-millionaires in the world are located in jurisdictions that offer residence or citizenship by investment options, underlining how vital these programs are in building sovereign equity.

As countries worldwide make efforts to attract investors and their capital, some are positioning themselves as international financial centers. The popular tax-friendly hub of the Middle East, the UAE offers a golden visa, and Singapore, which has one of Asia’s most attractive legal and fiscal frameworks for international corporates and their affluent shareholders, offers the Global Investor Program for permanent residence.

Other nations, such as Australia, New Zealand, and Switzerland, put forward their stable political systems, modern infrastructure, high quality of life, advanced academic and medical institutions, and, most notably, their reputation as peaceful countries on offer for wealthy families seeking alternative residence.

The future of wealth in an evolving world

The wealth landscape itself is changing, and so are the needs of centi-millionaires. As technology spurs a revolution in the way we live, work, and build wealth, many of tomorrow’s affluent investors will be crypto-millionaires and techpreneurs. Their priorities will be to live and invest in countries that are welcoming and forward-thinking. Countries that have the legal frameworks in place to allow, for example, cryptocurrency-related businesses to grow, such as St. Kitts and Nevis, which also offers a citizenship by investment program, will be especially attractive to investors on the cutting edge of technological evolution. Others such as Canada and the UK, which offer start-up-related residence by investment programs, will draw the attention of this influential group of investors — the emerging entrepreneurial and innovative centi-millionaire class.

For more information on these or any other investment migration programs, please reach out to Henley & Partners. As the pioneering firm and the global leader in residence and citizenship by investment, we are best placed to successfully serve international clients interested in acquiring alternative residence and citizenship options.