What is High-Net-Worth Individual (HNWI)?
A high-net-worth individual (HNWI) is an individual with investable assets typically exceeding $1 million. Many HNWIs and ultra-high-net-worth individuals (UHNWIs) invest directly into private funds as limited partners, often through family offices.
The term HNWI typically applies to individuals with more than $1 million in investable assets; ultra-high-net-worth (UHNWI) typically means over $30 million. Both groups often participate in private funds either directly or through a family office structure.
For fund managers, HNWIs are attractive LPs because they can move quickly and are not subject to the governance and compliance overhead of institutional investors. However, their check sizes are generally smaller, and onboarding many individuals is operationally intensive.
Also known as: HNWI, UHNWI, ultra-high-net-worth