Global Business - Private Wealth Intermediaries - Bhumishq

Global Business

PRIVATE

WEALTH SPVs

Explore how Bhumishq supports private
wealth intermediaries in the Mauritius IFC.

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Bhumishq

 

PRIVATE WEALTH OPPORTUNITY

It is estimated that Africa is home to around 165,000 high net worth individuals(HNWIs) with a combined wealth holding of US$860 billion and this number is set to increase at a rate of 7% as a result of continuous economic development and urbanisation.

Mauritius is well positioned to become Africa’s IFC of choice for private wealth. Industry players will have an opportunity to capture a market share of US$ 300 billion addressable from about 50,000 ultra-high networth individuals and witnessing a constant growth rate of 7% per annum.

MARKET ANALYSIS

Total Available
Market (TAM)

Serviceable Available
Market (SAM)

Target MarketMarket
Share

TOTAL AVAILABLE
MARKET (TAM)

Total Available Market (TAM) size is about US$ 860 billion addressable from 165,000 ultra-high networth individuals (UHNIs) in Africa. The growth is estimated at 7% per annum.

SERVICEABLE AVAILABLE
MARKET (SAM)

The Serviceable Available Market (SAM) size will be about 90% of the TAM as less than 10% represent US$ 100 million plus and US$ 1 billion plus fortunes who already have access to global private wealth service providers.

The SAM is estimated at ~774 billion from ~ 148,000 UHNIs.

TOTAL MARKET

The Target Market will be 80% of the SAM since 20% of the SAM will be loyal to their existing private wealth institutions, especially in South Africa. Also, some will diversify their portfolios especially with Asian value propositions.

The Target Market is estimated at ~ 619 billion from ~ 118,000 UHNIs.

MARKET SHARE

As the Mauritius IFC develops its value propositions and sustainable competitive advantage offerings, it can capture ~ 50% of the Target Market.

The Market Share is estimated at ~ US$ 300 billion from ~ 59,000 UHNIs.

 

Mauritius IFC Contribution

Private banking and wealth management is the IFC’s third-largest sector, with a banking revenue pool of US$94 million, AUM of US$8.2 billion, and approximately 300 full-time employees (FTEs).

Private banks provide traditional banking regulated by the Bank of Mauritius (BOM) and more complex wealth management services regulated by the FSC to HNWIs:

Traditional banking: Deposit taking (~50% of AUM), personal lending and credit cards.

Wealth management: Custodial services, portfolio management and investment advisory services.

Regional Opportunity

Private banking and wealth management for the region is a major opportunity, offering potential growth of 7-8% p.a. to create a US$20 billion revenue pool by 2030. A particularly interesting growth segment is HNWIs, i.e., entrepreneurs, industrialists and family business owners increasing their wealth.

The Mauritius IFC Platform opportunity

Its compelling value proposition for private banks, wealth managers and HNWIs place Mauritius in an ideal position to capture significant share of this market, as it offers free capital flows and hard currency investment options; a strong regulatory framework and efficient tax structure for wealth placement; a wide range of investment structures with deep expertise in fund administration, and the potential to build greater links with the investor services eco-system that could provide cross-sell opportunities for HNWIs already using Mauritius; the potential to build a distinctive proposition on the well-established tourism industry; a stable political climate and economy.

Furthermore, the Mauritius IFC is encouraging additional opportunities in capital markets (building the leading multi-asset class, multi-currency, exchange for regional mid-size corporates), captive insurance, asset management, reinsurance, fintech, cryptocurrency exchange, and Islamic banking (cross-border Maharajah finance and Sharia-compliant trusts).

VALUE PROPOSITIONS OF THE MAURITIUS IFC AS AFRICA’S LEADING PRIVATE WEALTH MANAGEMENT HUB