The article discusses how a new generation of wealthy inheritors, often referred to as "nepo babies" by the media, are actively trying to escape the shadow of their family's wealth and establish their own identities. This involves a conscious rejection of the ostentatious displays of inherited money that characterized previous generations. Instead of Mayfair members' clubs, for example, they are more likely to support ventures like a padel club on Tottenham Court Road. They are shying away from terms like "sustainability" if it feels like a performative act of privilege and are instead being more direct about their work, even if it's in a less glamorous industry. This shift is driven by a societal mood where extreme wealth polarization has made overt displays of privilege less aspirational.
This generation has developed a new lexicon to describe their family's wealth and support systems – a "family office" becomes "a platform," and a "trust" is referred to as "long-term support." They are also making different lifestyle choices, such as avoiding private jets on a whim, indicating a desire to live differently from their parents. The article notes that legacy luxury brands like Rolls-Royce and LVMH's fashion and leather goods division saw declining sales in 2025, suggesting that the traditional symbols of wealth are losing their appeal among these younger heirs.
Family companies, however, face their own challenges in this climate. Research shows that employees in family firms, particularly at upper management levels, can be less intelligent than their counterparts elsewhere because brighter staff avoid them due to scarcer promotion opportunities and lower rewards, a phenomenon dubbed the "surname ceiling." While family owners like Gildo Zegna of Ermenegildo Zegna claim that young people trust family businesses for their lack of politics and commitment to truth, studies also reveal that family businesses are not always models of good management, suffering from nepotism, lower wages, and debilitating succession battles. This highlights the paradox of family ownership: while they often provide job security and a long-term view, they can struggle to attract top outside talent.
