Building Blocks of the Asset Allocation Puzzle
Family offices need a well-rounded and robust asset allocation strategy that meets both financial and non-financial objectives, securing wealth for future generations. This involves factoring in investment goals & objectives, risk tolerance, diversification, time horizon & liquidity needs, tax efficiency, estate planning and more.
Risk Management an Essential Pillar
The first objective of a family office is to preserve the principal sum at play and then look for how to gain in the future. This involves a strong risk management framework that doesn’t shake up with passing investment fads and reins in the proverbial fear-of-missing-out (FOMO). What processes need to be established right at the beginning to ensure this? How can family offices fine-tune their risk management practices over time?
Public vs Private: A Juggling Act
A well balanced portfolio creation is the basic function for family offices and this includes a good mix of both public and private equity, with their distinct advantages and challenges. What is the best composition of the two and how can family offices align best to sail with the asset price cycle to generate alpha in the short as well as the long run?
Familiarity Bias: Boon or Baggage
Principals behind all family offices are associated with at least one industry of their own with many having multiple business interests. Some family offices have a clear policy of not investing in sectors where they have their own business to add a sound diversified portfolio creation. How effective is this strategy and are their exceptions that one should exploit? Are there other means to play further in the same sector via a different asset class?
Touch of the Exotic: Dabbling into Art, Crypto
Exotic asset classes such as crypto, fine art and more offer family offices another diversification lever that lies outside the conventional investment buckets. These offer some insulation from global market fluctuations but come with their own loaded risk elements such as illiquidity, valuation challenges, and regulatory uncertainty. What has been the experience with such investments and what are the learnings? When is it prudent to look at such assets more closely?
Real Assets as the Evergreen Favourite
Real estate has been an all-time favourite of business groups in India as a safe haven as an asset class with the ‘touch and feel’ factor. There have been some temporary setbacks in the past but broadly real estate has been an important asset class for family offices that has resulted in appreciation of wealth. How have real estate investment strategies evolved for family offices and what routes seem more favourable for the future?
Engagement Quotient with Next Gen
The first generation of family offices started with group finance heads doubling as asset allocators as principals were operational leaders in their domain. But ‘formal’ family offices started with creation of professional structures around two decades ago. Now, we have omni structures as in many cases more financially literate next generation is engaged in decision making along with the professionals. How can family offices balance the roles and responsibilities of different stakeholders so the final outcome is superior?
Giving Back: Philanthropy to do Good
Philanthropy is an increasingly important aspect of family offices, serving as a way for families to align their wealth with their values and make a lasting social impact. Family offices often establish charitable foundations to facilitate their philanthropic efforts, allowing them to support causes that resonate with the family’s mission. This can include areas like education, healthcare, environmental sustainability, and social justice. What is the right mode to make this happen and yet make it a more tax efficient process? How important is the role of partnerships in philanthropy activities?
Refuelling the Engine
Family offices can start with a big bucket corpus triggered by a business sale or via a small sum dedicated from the cash flow arising from dividend earnings of the promoters. Reinvesting the proceeds of the gains is another way to inject more into the system. How often the corpus can and should be refuelled? What is the best practice used by established family offices by routing almost the entire sum to the family office or a fixed proportion every year?
Concierge Services an Evolving Discipline Beyond Asset Management
The role of a family office goes beyond traditional wealth management by offering personalized, day-to-day support. This can include managing travel arrangements, organizing events, assisting with household management, and facilitating access to exclusive services or experiences. It enhances the family’s lifestyle by saving time and ensuring that their needs are met with a high level of attention to detail. How are existing family offices imbibing this as a service and enhancing their offerings?
Confidante and the Thread Connecting Family Members
Conflict resolution is crucial in family offices, especially when managing wealth across multiple generations and extended families. Family dynamics can lead to disagreements on investment strategies, governance, or the family’s philanthropic direction. Professional mediators or advisors specializing in family business or wealth management are often brought in to help resolve disputes, promote effective communication, and maintain family harmony. Establishing clear governance structures and facilitating open dialogue can prevent potential conflicts from escalating, ensuring the long-term success of the family office.
Siddharth is Chief Investment Strategist at Om Kothari Group. The Group has interests in Engineering Infrastructure, Automobile Dealerships, Manufacturing, and Real Estate. Their flagship company, Om Infra, is listed on the NSE and BSE.
Siddharth invests in listed and private companies across sectors and stages.
His notable startup investments include Beardo (acquired by Marico), Sirona (acquired by GoodGlamm), and Innov8 (acquired by Oyo). His growth stage investments include MobiKwik, Progcap, NSE, Waaree Energy and Nazara Tech.
Vegan since 2010, Siddharth has a special interest in plant-based ventures. He is a Partner at Ahimsa VC, India's first fund investing exclusively in sustainable alternatives to animal-based products.
Siddharth is a Partner at 2Point2 Capital PMS, a Venture Partner at Venture Catalysts, and an LP at Carpediem Capital. He is also a member at EO Gurgaon.
Siddharth is Chief Investment Strategist at Om Kothari Group. The Group has interests in Engineering Infrastructure, Automobile Dealerships, Manufacturing, and Real Estate. Their flagship company, Om Infra, is listed on the NSE and BSE.
Siddharth invests in listed and private companies across sectors and stages.
His notable startup investments include Beardo (acquired by Marico), Sirona (acquired by GoodGlamm), and Innov8 (acquired by Oyo). His growth stage investments include MobiKwik, Progcap, NSE, Waaree Energy and Nazara Tech.
Vegan since 2010, Siddharth has a special interest in plant-based ventures. He is a Partner at Ahimsa VC, India's first fund investing exclusively in sustainable alternatives to animal-based products.
Siddharth is a Partner at 2Point2 Capital PMS, a Venture Partner at Venture Catalysts, and an LP at Carpediem Capital. He is also a member at EO Gurgaon.
Siddharth is Chief Investment Strategist at Om Kothari Group. The Group has interests in Engineering Infrastructure, Automobile Dealerships, Manufacturing, and Real Estate. Their flagship company, Om Infra, is listed on the NSE and BSE.
Siddharth invests in listed and private companies across sectors and stages.
His notable startup investments include Beardo (acquired by Marico), Sirona (acquired by GoodGlamm), and Innov8 (acquired by Oyo). His growth stage investments include MobiKwik, Progcap, NSE, Waaree Energy and Nazara Tech.
Vegan since 2010, Siddharth has a special interest in plant-based ventures. He is a Partner at Ahimsa VC, India's first fund investing exclusively in sustainable alternatives to animal-based products.
Siddharth is a Partner at 2Point2 Capital PMS, a Venture Partner at Venture Catalysts, and an LP at Carpediem Capital. He is also a member at EO Gurgaon.
Siddharth is Chief Investment Strategist at Om Kothari Group. The Group has interests in Engineering Infrastructure, Automobile Dealerships, Manufacturing, and Real Estate. Their flagship company, Om Infra, is listed on the NSE and BSE.
Siddharth invests in listed and private companies across sectors and stages.
His notable startup investments include Beardo (acquired by Marico), Sirona (acquired by GoodGlamm), and Innov8 (acquired by Oyo). His growth stage investments include MobiKwik, Progcap, NSE, Waaree Energy and Nazara Tech.
Vegan since 2010, Siddharth has a special interest in plant-based ventures. He is a Partner at Ahimsa VC, India's first fund investing exclusively in sustainable alternatives to animal-based products.
Siddharth is a Partner at 2Point2 Capital PMS, a Venture Partner at Venture Catalysts, and an LP at Carpediem Capital. He is also a member at EO Gurgaon.
Nitesh Aggarwal is the Chief Investment Officer at Baldota Family Office fund with a deployable corpus of $130mn. The investment focus in to largely invest in the unlisted space into start-ups and VC/PE funds. They have already deployed ~40mn across 35 funds and 25 start-ups across India/US and Israel.
An alumnus of Indian Institute of Management - Bangalore, he has over 17 years of experience investing in the PE/VC asset class.
Nitesh was earlier associated with funds like Q Investments, New Enterprise Associates, and Edelweiss, among others.
Devashish has been in the Family Office Investing space for the last 18 years and has led 4 Family Offices in India. He has spent time across asset classes with passion to invest in Private Markets. Current portfolio has more than 15 LP positions and 40 direct investments.
Jai is a man who wears many hats. As the Head of the Dinesh Hinduja Family Office (DHFO), he oversees investments across all asset classes for the group: real estate, equities, bonds, structured products, private equity, and venture capital. Mr. Rupani led the real estate development efforts at Gokaldas Lifestyle, a group company of DHFO, for several years before taking the helm at the family office.
Before joining the Gokaldas Group, Mr. Rupani was part of the investment team at True North (erstwhile India Value Fund), a USD 2.2 billion private equity fund in Mumbai. During his tenure at True North, Jai led the investments into Merucabs (one of India’s first taxi-aggregation companies) and ACT Broadband (a leading IPTV and broadband service provider). Prior to True North, Mr. Rupani was an investment banker with The Royal Bank of Canada Capital Markets Group in their San Francisco office for several years. At RBC Capital Markets, Jai was integral to the technology investment banking team managing IPOs, private placements, and M&A deals. He has completed his formal education at the University of Michigan, Ann Arbor (BBA) and the University of Texas at Austin (MBA) in the United States. In his free time, he enjoys mentoring start-ups, playing golf, and spending time with his family.
Ms. Juhi Agarwal is the Founder and Chief Investment Officer of the Family Office of Scan Holdings Group. She specializes in strategic wealth management and investment planning.
With a Masters in Management from ESSEC Business School in France, Juhi has studied and worked in three of the top global economies: India, France, and the USA. Her professional journey includes significant roles with multinationals such as Pepsi in India and Nestle in France, and successfully running and exiting her own ‘online’ profitable venture at an early age of 18. She has had prominent engagements in the start-up world with Carolina Angel Networks and TAP in North Carolina, USA.
Her travel exposure in over 42 countries across the globe has given her a deep understanding of business, culture, global economies and geopolitics. Additionally, she had the privilege of learning business in her early years at home from her first-generation entrepreneur parents running an international business. This made Juhi well-versed at identifying opportunities and mitigating risks in the dynamic investments landscape. She is known for her foresight to integrate global affairs with an Indian context for more effective decision making.
At Scan, she is committed to leading her team to create specialised investment strategies and comprehensive financial planning to secure and grow wealth across generations. Juhi measures her success on two fronts – the alpha generated over the markets alongwith risk control from a monetary aspect; and the lives impacted with our social efforts from a humanitarian aspect. She strongly advocates for women's empowerment and education, directing the family office’s CSR projects to these causes in rural areas of India.
Mr. Anoop Tulsyan has a wealth of experience spanning more than 20 years in the financial services industry. He is thorough professional with a diverse background in the areas of Accounts & Finance. Prior to joining Ashok Goel Family Office as the Group Chief Financial Officer, Mr.Tulsyan has held positions at AION Capital Partners, a private equity funds managed jointly by ICICI Venture and Apollo USA, and at Motilal Oswal Financial Services Limited. He has made significant contributions to the growth of these organizations during his tenure, and has gain extensive experience in portfolio monitoring, financial advisory, equity research, financial analysis and taxation. He has also worked in the private equity fund industry for over 10 years.
Dhruv Suri is an Entrepreneurial Family Office Investment executive with 17 years experience in the VC, Private Equity, Real Estate & other Alternative assets.
Spearheaded mapping US$ 5 Billion deal pipeline in the Asian market across both Fund & Direct (startup) investment strategies.
Leading as a Family Office Principal & engagements with global Institutions he has mobilized Investment Strategy, Fund raising and Business operations.
Globally connected having established enduring relationships across Asia focused Institutional Investors, Family Offices, Investment Funds & Corporations.
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