The Secret's Out!

From distressed assetsand venture capital to ESG investing and pre-IPOs, hereshow Indias super-rich are deploying their millions.

- Aniruddha Bose

FEW THINGS PIQUE the curiosity of lay investors as the topic of how – and where – ‘uberwealthy’ ultra-high net worth individuals (HNIs) deploy their treasure chests full of money. From industry titans to scions of businesses, to newage digital entrepreneurs who are magnetising private growth capital and wealthy professionals who have sculpted cash-rich empires around their core-competencies – the jet-hopping beau monde sure are a diverse lot! And whereas it would be a gross oversimplification to assert that they all invest in the exact same manner, we do find that the majority of them exhibit some commonalities when it comes to their investing modus operandi.

There are tectonic shifts under way in the wealth management industry – not just locally, but globally too. Ultra HNIs are no longer content with a one-dimensional approach to private wealth management. They are looking beyond asset allocation; seeking out advisors who can provide them with tech-enabled, holistic solutions that span an entire gamut of financial services, encompassing wealth preservation, portfolio diversification, estate planning and tax planning, alternative investments and even structured philanthropy! And while wealth man agement from the perspective of ultra HNIs will probably always remain a “high touch” business; digitally enabled advice is sure to influence ultra HNI wealth management business models in the times to come.

Where’s It Coming From?

Fat corporate salaries notwithstanding, most ultra HNIs in India do tend to be business owners. With the investment climate and liquidity improving, a number of them are receiving impressive valuations for their respective businesses; and this is resulting in an unprecedented capital influx into wealth management outfits that specialise in serving this segment.