Family Office: The super-rich tradition!

The broad concept of a family office is to manage, preserve and grow wealth and to gain tremendous grounds and earn a label of ‘country’s super-rich’. Around 45 business families in India, have already created such structures that help in managing an average of $318 million (Rs. 2,226 crore). Family offices have a broader perspective and a much wider role than the financial or wealth advisors, whose services are used by high net worth individuals (HNWIs). This term is being used to describe who have a liquid asset over $1 million (7 crore). This is an advisory firm that looks after the wealth, which includes assets like properties, paintings, yachts and other investments for the super-rich who own over $100 million. It also provides counseling services to the family members and enables a vibrant and smooth transition of wealth from one generation to another.

The founder of Patni Computer Systems, Amit Patni who is also a part of the family, was the first to take the route of a family office to manage wealth. This family office was founded after General Atlantic invested $100 million in the company in the year 2002 and became very useful when this renowned organization, Patni Computer Systems was sold to iGateNSE 0.00% in 2011 for around $1.22 billion. Impressed with its own monetary and fame structure, Patni thought of partnering with UK’s Campden Wealth Connect to set up the well-known RAAY investments that in real advises the families.

This study for the first time has been done by Edelweiss Private Wealth Management and Campden and according to the CEO of Campden Wealth, Dominic Samuelson, there has been a requirement for such a firm that would deliver guidance across all the generations. This happens, because there are less than 3% of the families who have efficaciously transitioned wealth beyond the third generation and less than 30% have transitioned from the first generation to the second.

To conclude, Anshu Kapoor, the Private Wealth Management head at Edelweiss, said, “India has 1.5 lakh high net worth families with $2 trillion, which is not good, it is best”.


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