Family offices are gaining global popularity with the latest bump in activity based in the Indian subcontinent. Munish Randev, Chief Investment Officer of Waterfield Advisors, which provides family business advisory services to ultra high net worth families managing over $1.7B in assets, spoke to India’s Moneycontrol on the money management preferences of these wealthy families.
“The families and individuals with whom we work have very different wealth management needs and hence all services are customised for each family. We are witnessing a fast change in the thought process regarding the need for family offices,” noted Randev. “While earlier, many families were not too keen, over the last 3 years we have seen a growing understanding and acceptance for a well-structured family office.”
Randev went on to note “All family offices use the same principles of investing as most investors do, but due to the difference in the complexity and size of the portfolio, the planning, executing and monitoring processes are much more advanced in nature.
“Almost all these high-net-worth families have exposure to the alternative investment space via venture capital funds, unlisted equity investments, hedge funds etc. [For this reason i]t is a common misconception that the family offices are more risk taking in general. So while you may often read about new investments done by a family office in the start-up space, you generally don't hear about the investments in simple products like bonds and mutual funds,” Randev remarked. That is to say, family offices have great investment potential and one shouldn’t be deterred by their relative power and wealth.
Randev continued, “On the financial portfolio side some families are having actively managed portfolios overseas. Real estate has been bought with both ‘self-use’ and ‘investment’ in mind. So while we have helped some families find their overseas second homes we also have seen certain capital being allocated towards investment grade properties, primarily residential.”
Family offices are making their mark in the world of alternative investing. Learn more with our FINTRX Family Office Platform.