The millionaire surge rode a wave of stock market gains that saw the S&P 500 climb more than 23% and the Nasdaq jump nearly 29%1. Nvidia alone rose 171% and accounted for 22% of the S&P 500's gains, exemplifying how a handful of technology companies drove much of the wealth creation1.

"Even in an environment of low interest rates, geopolitical tensions, and trade policy uncertainty, the wealth management sector will continue to grow," said Nic Dreckmann, chief operating officer of Swiss private bank Julius Baer1.

The ultra-wealthy benefited disproportionately, with those holding at least $30 million in investable assets seeing their ranks grow 6.2%, twice the rate of ordinary millionaires234. This group now controls an outsized share of American wealth, with just 19 households controlling 1.8% of total U.S. household wealth worth $2.6 trillion5.

While North America's high-net-worth population surged 7.3%, other regions struggled12. Europe saw its millionaire population decline by just over 2% due to economic stagnation, while Latin America and the Middle East also posted declines13.

The contrast with China was particularly stark. Chinese billionaire wealth retreated to $1.8 trillion from its 2020 peak of $2.1 trillion, reflecting what UBS attributed to "China's common prosperity campaign, tougher regulatory environment, and falling share of global equity market indices"4.

India emerged as a bright spot in Asia, with billionaire wealth surging 42.1% to $905.6 billion4.

The wealth management industry faces a looming challenge as an estimated $84 trillion in wealth transfers to younger generations12. Nearly 81% of inheritors plan to switch away from their parents' wealth management firms within two years3.

"The next-generation of high-net-worth individuals arrive with vastly different expectations to their parents," said Kartik Ramakrishnan, CEO of Capgemini's Financial Services Strategic Business Unit1. "This necessitates an urgent shift away from traditional strategies."