Trophy Assets Guide
Trophy Assets Guide
Welcome to the Trophy Assets Guide 2024. It’s been almost a decade since we published the last edition of this guide to the issues and disputes that can arise from buying and owning passion investments.
The trophy assets market has changed significantly since then. The ultra high net worth (UHNW) population has steadily grown over the past few years, with the 2024 Knight Frank Wealth Report finding it has risen by 4.2% compared to a year earlier.
This growth is expected to continue, with Knight Frank predicting a 28.1% increase in UHNW individuals globally in the next five years. This will likely fuel demand for trophy assets as this growing population continues to invest in alternative assets which can offer better returns.
Periods of macroeconomic uncertainty that have emerged over the past few years haven’t affected UHNW individuals’ confidence. The latest True-Luxury Global Consumer Insight report, co-signed by BCG and Altagamma, noted that ‘Beyond Money’ consumers (defined as those who spend more than EUR50,000 annually on luxury goods or experiences, with an average expenditure of EUR350,000 each year) maintain their luxury consumption despite economic fluctuations and geopolitical crises. This suggests that UHNW individuals will continue to spend despite what’s going on in the world, further fuelling demand.
The trophy assets market has also become more diversified due to changing demographics. Older generations are transferring their wealth to younger generations like Millennials and Gen Z who are more global, diverse and have their own interests. With 53% of global wealth likely to be inherited by younger generations of UHNW individuals by 2045, a huge amount of capital is going to be available to be deployed into new asset classes that younger generations are passionate about like handbags and watches, sports clubs and classic cars.
Of course, these assets all come with their own unique challenges, and owning them requires careful consideration from a legal, regulatory and tax perspective and a solid understanding of the risks involved. We’ve written this new edition of our Trophy Assets Guide to help you understand the key areas you need to consider before investing capital, to help you avoid the negative financial and emotional consequences we’ve seen clients experience in the past.
The 2024 edition covers a range of in-demand asset classes, with commentary on everything from commercial and rural real estate to classic cars, private jets, art and luxury watches and handbags. Alongside insight from our Private Wealth group, we’ve also included the views of some of the world’s most revered experts in this guide and gratefully acknowledge their contributions.
We’ve worked across some of the largest high-profile acquisitions of trophy assets – from RM Sotheby’s auction of a EUR135 million Mercedes-Benz 300 SLR Uhlenhaut Coupé to advising in the last 12 months on the sale and purchase of London hotels worth circa USD500 million – and are recognised market leaders in private wealth.
We have a wide breadth and depth of experience advising individuals and their families across the globe on how to grow, protect and transfer their wealth for generations to come. If you need advice on any of the issues featured in this guide, please get in touch.
