Financial Review Young Rich Listers Fortunes Drop By $11 Billion

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The combined wealth of the 100 wealthiest young Australians aged 40 and under has declined by 27 per cent over the past 12 months, according to the Financial Review 2022 Young Rich List.

Some of Australia’s richest young entrepreneurs have seen the value of their companies plummet as interest rates rise. Canva co-founders Melanie Perkins and Cliff Obrecht have lost a combined $3 billion from the value of their companies, with other entrepreneurs taking hits totalling around $11 billion.

Although the pair is no longer billionaires, they remain wealthy, with a combined fortune of $13.7 billion.

The 2022 Financial Review Young Rich List exposes the various means the next generation of entrepreneurs are accumulating their riches. Sam Prince, 38, defies the economic downturn by selling burritos and nachos at his Mexican restaurant chain Zambrero, which has increased his wealth to $1.2 billion—up from $1.1 billion last year—and #3 on the Young Rich List.

“Prince is at the forefront of a comeback for traditional industries this year,” said Rich List co-editor Michael Bailey. “Software makers are being pushed aside by sportspeople, musicians and fashionistas who were once the mainstays of the Young Rich List.”

Rich List co-editor Julie-anne Sprague said: “This year, the wealthy in the technology sector got a reality check. Rising interest rates knocked down company valuations inflated due to investors’ expectations for growth. Now, profitability is back in focus.”

Although technology-based wealth has declined recently, starting your own tech company is still the best way to make it onto the Young Rich List. 

Twelve entrepreneurs made their fortune this way last year. However, sports and entertainment can also be lucrative industries, with 12 sports people making it onto the list – including newcomers golf Cameron Smith ($37 million and #97 ); Perth baseballer Liam Hendriks ($48 million who scored a big contract with the Chicago White Sox; and former Bankstown local Jordan Mailata ($49 million) who now plays for NFL’s Philadelphia Eagles.

Tones & I and Vance Joy, two Australian musicians are lighting up the global stage, debut on the Young Rich List thanks to their writing of hit songs. Their hits have increased in value due to their music being played more over streaming, and with a post-pandemic return to touring, Tones & I is worth $35 million (#98), while Vance Joy is worth $40 million (#96).

The Financial Review Young Rich List is an annual event that began in 2003 and tracked the wealth of Australia’s wealthiest people aged 40 and under. To qualify for the list, participants must not have inherited their wealth but earned it from another facet (s) like real estate or cryptocurrency, as seen with Ed Craven. He made headlines after he bought a Tookrak mansion for more than $88 million–a record at the time. This year’s entry point was set at $35 million, down from $36 million last year, with Craven debuting at #5 with 1.1 billion dollars to his name.

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