old wealth vs young wealth - presentation by anton gans, business advisory, zenith capital...

Old Wealth vs Young Wealth

2012

ZENITH CAPITAL MANAGEMENT 2

Global Wealth ShiC

According to “The Wealth Report 2012” hJp://www.thewealthreport.net/ : ! Centa-‐millionaires: 18,000 in South-‐East Asia, China, Japan; 17,000 in North America; 14,000 in Western Europe. !  By 2016 South-‐East Asia will have about 26,000 centa-‐millionaires, based on Ledbury Research, compared with 21,000

in North America and 15,000 in Western Europe. !  South-‐East Asian deca-‐millionaires (those with $10m or more in assets) already outnumber those in Europe, and are

expected to overtake those in the US in the coming decade. !  The London School of Economics professor Danny Quah forecasts that by 2050 the world’s economic centre of gravity,

based on GDP, will have shiCed to somewhere between China and India from the middle of the Atlanbc in 1980.


Old Wealth – family prevails business

!   “Not-‐my-‐money”

!   Inherited wealth

!   Family governance

!   Wealth succession

!   Social responsibility

!   Conservabve

!   Sense of responsibility

!   Long-‐term decision making

Old and Young Wealth Values

Young Wealth – business prevails family

!   “My-‐money”

!   Self-‐generated wealth

!   Business focus

!   Business & wealth preservabon

!   Acbve in polibcs

!   Opportunisbc

!   High return expectabons

!   Short-‐term decision making

!   Exsessive consumpbon

!   Consuming & preserving outside homeland


Old and Young Wealth Worlds

Old wealth

Young wealth

Sleeping Beaubes

Based on Forbes TOP-‐lists (according to Forbes.ru): !  Average age of wealthy Russians: below 50 Americans: 66 French: 74 !  Inherited wealth among Russians: 0% Americans: 31% French: 67% !  Most of adult heirs of the Young (Russian) Wealth are acbve in the businesses to be inherited. !  Only 6 of 35 polled from the Russian Forbes TOP 100 have seJled heritage issues. !  Russia has a paternal mentality: parents shall give their children as much as possible.


!   OLIGARCHS •  Established/generated wealth through privabsabons of state assets in 1990-‐s •  Income-‐base: natural resources or heavy industries •  Based on strong lobby power •  Diversify into other business sectors

!   SELF-‐MADE BUSINESSMEN

•  Established/generated wealth through compebbve business (and exits) •  Income-‐base: FMCG producbon, wholesale/retail trade and service indusbres •  Based on strong management •  Expand geographically

!   STATE OFFICIALS •  Established/generated wealth through trade of influence •  Income-‐base: posibon in state decision-‐making/inner circles •  Based on strong polibcal connecbons •  Short-‐term wealth accumulabon and preservabon

* Based on the FSU markets

Young Wealth Target Groups *

ZENITH CAPITAL MANAGEMENT

“Ultra HNWIs in Russia to 2016” created by WealthInsight: !   over 1,290 UHNWIs in Russia as of year-‐end 2011

!   with a combined wealth of USD 481 billion !   and an average wealth of USD 372 million/person !   92 billionaires !   634 cenb-‐millionaires !   567 affluent millionaires

!   On a city level: !   Moscow 821 UHNWIs (64% of Russia’s total) !   St. Petersburg 99 UHNWIs !   Yekaterinburg 38 UHNWIs !   Novosibirsk 31 UHNWIs !   Kazan 29 UHNWIs !   Kemerovo 27 UHNWIs

Wealth in Russia


!   Business focused – main concerns are about developing, compebng and protecbng business

!   Short-‐term horizon – most plans are made with an average span of 5 years = 1 term of presidency in Russia

!   Wealth preservaXon – protecbng accumulated wealth

!   Cross-‐border mobility – access to assets and new makets, residency issues

!   ByzanXne hierarchicy – supported from boJom to top

!   Rapid decision-‐making – at spot during the inibal meebng/contact

!   Plain and simple – income perspecbve shall be evident at the first glance

Young Wealth Decision Making


New challenges ahead:

!   Second generabon – unprepared, later disappointment

!   Inheritance issues – business or capital, scaJered impulsive assets, spouces vs lovers

!   Transibon to long-‐term planning – to preserve wealth over generabons

!   Tiding up the society – beJer life for children/family now

!   Internabonal and global integrabon – business and personal

Young Wealth ShiC


Are you ready to be?

!   Business developer – assist hands-‐on in business management and development, provide business solubons and solve problems

!   Business broker – networking and providing business leads and partners for the client

!   Growing with the business – earning client’s trust through being “brothers in arms”

!   Thinking “out of the box” – dealing with clinet’s spontaneous lifestyle, e.g. extravagant and impulsive expenditures, complicated love-‐affairs

!   Part of his world – thinking, talking and walking his way

!   Partner of Zenith Capital Management

Approaching Young Wealth


Zenith Capital Management


Our key clients and projects are in: !   Russia !   Ukraine & rest of the FSU !   the Scandinavian countries !   the Balbcs

Sectors of corporate projects !   Healthcare services and technologies !   Transportabon and power-‐generabng infrastructure !   Mining of non-‐ferrous metals !   Hotel development and management !   Food industry !   Electro-‐technical manufacturing !   Real estate investments (offices, retail, industrial)

Focus of Zenith


Zenith Team

Wealth Management

✓  17 years in private banking and financial sector. Founding partner of Trigon Wealth Management

✓  Creator and manager of private banking at Swedbank Estonia

✓  Former member of the board of Swedbank Estonia

Kristel Meos Hannes Pihl Aavo Koppel Anton Gans Physical Asset Management

✓  16 years in real estate sector

✓  Concepbon of development, sales strategies and administrabon, private real estate porwolio management

✓  ERI Kinnisvara managing partner, NAI Global representer in Estonia

✓  founder and a member of board of EKMK

Corporate Finance

✓  18 years in strategy & management consulbng and investment banking

✓  M&A transacbons, equity issues, financing arrangements, buy-‐outs

✓  Mostly across all the Balbc markets

Business Advisory

✓  19 years in B2B sales and innovabve markebng

✓  Commercial banking, marine infrastructure and port development across the markets of the Balbc States, the CIS, the EU

✓  Lived and worked in Moscow, Russia


Reference porwolio

Tallinn, Estonia seyng up and managing the company

Tallinn, Estonia founding Hansabank Private Wealth

Management, Managing Swedbank Private Banking

Moscow, Russia seyng up new business of vehicles handling

terminals and transportabon means

Sillamäe, Estonia aJracbng foreign direct investments into terminal development and operabon

Tallinn, Estonia aJracbng foreign direct investments into terminal development and operabon

Tartu, Estonia strategic development of Estonian Aviabon

Museum

Tallinn, Estonia sale of the leading Balbc confecbonery AS

Kalev to Orkla Group

Riga, Latvia Balbc expansion strategy and subsequent acquisibons of Latvian leading brewery Lacplesa Alus and Balbc leading juice and

mineral water producer Cido

Tallinn, Estonia expansion strategy and subsequent

acquisibons of Eriautobaas, Prügipress and Vanspo Service

Tallinn, Estonia sales management and advisory of a 200-‐room mulbfuncbonal building development

Tallinn, Estonia organising financing, acquisibon and asset

management for the largest DIY store K-‐Rauta real estate

Tallinn, Estonia manager and owner of on of the first Estonian real estate brokerage company Eri Kinnisvara


Contacts Kristel Meos Wealth Management [email protected] phone: +372 50 50 496 Hannes Pihl Physical Asset Management [email protected] phone: +372 50 24 668 Aavo Koppel Corporate Finance [email protected] phone: +372 50 48 886 Anton Gans Business Advisory [email protected] phone: +372 52 62 340

Zenith Capital Management Ltd. Tartu mnt. 7

10145 Tallinn, Estonia [email protected] www.zenith.ee

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old wealth vs young wealth - presentation by anton gans, business advisory, zenith capital...

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