The ultra-rich in London are more and more defending their wealth by way of using “household workplaces”, says analysis from the London College of Economics.
These are groups of pros – equivalent to attorneys, financiers and psychologists – employed to make sure the “dynastic wealth” of the super-rich.
These workplaces work for households value at the least £200m, says the examine.
Researcher Luna Glucksberg says their function “calls for scrutiny”.
The examine, from the LSE’s Worldwide Inequalities Institute, says extra consideration must be paid to the rise of such “shadowy” household workplaces, that are employed full-time to guard the pursuits of their “elite households”.
The examine describes how they assist a “bunkered” and “fortified” lifestyle of the “international super-rich”.
Household workplaces have grown alongside the concentrations of the ultra-rich in cities equivalent to London – and researchers say they’ve moved on a step from shopping for in specialist advisers.
These are full-time skilled workers, which might embody funding consultants, property advisers, economists, belief fund advisers and attorneys, who work for a single household, in the way in which company may need its personal devoted workers.
The examine quotes a US report from 2010 that discovered that 50 of the wealthiest such household workplaces had been taking care of $500bn (£407bn).
Somewhat than getting exterior recommendation from bankers and financiers, these household workplaces will maintain such info personal and in-house.
Their function “goes far past that of personal bankers”, says Dr Glucksberg.
“They’re about creating dynasties, making certain generational transfers of wealth,” she says.
In addition to maximising monetary pursuits and investments, such household workplaces can take care of each side of the personal lives of their employers.
This may be every thing from shopping for garments and organising holidays to arranging divorces and making monetary preparations to forestall cash being misplaced to in-laws.
The examine says that for a person household to have a household workplace, they’d must be value at the least £200m and doubtless way more.
However there are instances of “multi-family workplaces” – the place households value from £80m upwards might share such providers.
The expansion of maximum wealth, alongside poverty and low-income households, implies that there must be extra evaluation of how such wealth is perpetuated, the examine suggests.
These household workplaces “play an important function” in how benefits are handed on between generations, with full-time workers in a position to make long-term, strategic planning, says the examine.
“The rise of elite dynasties, financial inequality, and the huge concentrations of world wealth in current instances implies that the function of the ‘household workplace’ in our society calls for scrutiny,” says Dr Glucksberg.