For more information contact: emailus@marcusevans.com A presentation by: Anton Gans the Business Advisory at Zenith Capital Management Ltd., who provides his thoughts on Old Wealth vs Young Wealth, a speaker at the marcus evans Elite Summit. Join the November 2014 Summit along with leading European family offices and global asset managers in an intimate environment for a focused discussion of key new drivers shaping wealth management strategies today. For more information contact: emailus@marcusevans.com

1. Old
Wealth
vs
Young
Wealth
2012

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.
2
ZENITH
CAPITAL
MANAGEMENT

3. Old
and
Young
Wealth
Values
Old
Wealth
–
family
prevails
business
! “Not-­‐my-­‐money”
! Social
responsibility
! Inherited
wealth
! Conservabve
! Family
governance
! Sense
of
responsibility
! Wealth
succession
! Long-­‐term
decision
making
Young
Wealth
–
business
prevails
family
! “My-­‐money”
! Opportunisbc
! Self-­‐generated
wealth
! High
return
expectabons
! Business
focus
! Short-­‐term
decision
making
! Business
&
wealth
preservabon
! Exsessive
consumpbon
! Acbve
in
polibcs
! Consuming
&
preserving
outside
homeland
3
ZENITH
CAPITAL
MANAGEMENT

4. 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.
4
ZENITH
CAPITAL
MANAGEMENT

5. Young
Wealth
Target
Groups
*
! 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
5
ZENITH
CAPITAL
MANAGEMENT

6. Wealth
in
Russia
“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
ZENITH
CAPITAL
MANAGEMENT

7. Young
Wealth
Decision
Making
! 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
7
ZENITH
CAPITAL
MANAGEMENT

8. Young
Wealth
ShiC
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
8
ZENITH
CAPITAL
MANAGEMENT

9. Approaching
Young
Wealth
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
9
ZENITH
CAPITAL
MANAGEMENT

10. Zenith
Capital
Management
ZENITH
CAPITAL
MANAGEMENT

11. Focus
of
Zenith
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)
ZENITH
CAPITAL
MANAGEMENT

12. Zenith
Team
Hannes
Pihl
Kristel
Meos
Aavo
Koppel
Anton
Gans
Physical
Asset
Management
Wealth
Management
Corporate
Finance
Business
Advisory
✓ 16
years
in
real
estate
sector
✓ 17
years
in
private
banking
and
✓ 18
years
in
strategy
&
✓ 19
years
in
B2B
sales
and
✓ Concepbon
of
development,
sales
financial
sector.
Founding
partner
management
consulbng
and
innovabve
markebng
strategies
and
administrabon,
of
Trigon
Wealth
Management
investment
banking
✓ Commercial
banking,
private
real
estate
porwolio
M&A
transacbons,
equity
marine
infrastructure
and
✓ Creator
and
manager
of
private
✓
management
issues,
financing
arrangements,
port
development
across
banking
at
Swedbank
Estonia
✓ ERI
Kinnisvara
managing
partner,
buy-­‐outs
the
markets
of
the
Balbc
NAI
Global
representer
in
Estonia
✓ Former
member
of
the
board
of
States,
the
CIS,
the
EU
Swedbank
Estonia
✓ Mostly
across
all
the
Balbc
✓ founder
and
a
member
of
board
of
markets
✓ Lived
and
worked
in
EKMK
Moscow,
Russia
ZENITH
CAPITAL
MANAGEMENT

13. Reference
porwolio
Tallinn,
Estonia
Tallinn,
Estonia
Moscow,
Russia
Sillamäe,
Estonia
seyng
up
and
managing
the
company
founding
Hansabank
Private
Wealth
seyng
up
new
business
of
vehicles
handling
aJracbng
foreign
direct
investments
into
Management,
Managing
Swedbank
Private
terminals
and
transportabon
means
terminal
development
and
operabon
Banking
Tallinn,
Estonia
Tartu,
Estonia
Tallinn,
Estonia
Riga,
Latvia
aJracbng
foreign
direct
investments
into
strategic
development
of
Estonian
Aviabon
sale
of
the
leading
Balbc
confecbonery
AS
Balbc
expansion
strategy
and
subsequent
terminal
development
and
operabon
Museum
Kalev
to
Orkla
Group
acquisibons
of
Latvian
leading
brewery
Lacplesa
Alus
and
Balbc
leading
juice
and
mineral
water
producer
Cido
Tallinn,
Estonia
Tallinn,
Estonia
Tallinn,
Estonia
Tallinn,
Estonia
expansion
strategy
and
subsequent
sales
management
and
advisory
of
a
200-­‐ organising
financing,
acquisibon
and
asset
manager
and
owner
of
on
of
the
first
Estonian
acquisibons
of
Eriautobaas,
Prügipress
and
room
mulbfuncbonal
building
development
management
for
the
largest
DIY
store
K-­‐Rauta
real
estate
brokerage
company
Eri
Kinnisvara
Vanspo
Service
real
estate
ZENITH
CAPITAL
MANAGEMENT

14. Contacts
Kristel
Meos
Zenith
Capital
Management
Ltd.
Wealth
Management
Tartu
mnt.
7
kristel.meos@zenith.ee
10145
Tallinn,
Estonia
phone:
+372
50
50
496
zenith@zenith.ee
www.zenith.ee
Hannes
Pihl
Physical
Asset
Management
hannes.pihl@zenith.ee
phone:
+372
50
24
668
Aavo
Koppel
Corporate
Finance
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phone:
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48
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Gans
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