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Client Associates, the country’s largest multi-family office provider, is on an expansion spree, looking to ramp up its geographical footprint to 14-15 cities in the next three years, from its existing presence in nine cities, its co-founder Himanshu Kohli has said.
The Gurugram-headquartered wealth management firm, which has liquid assets under advice of about $ 5.3 billion, would pursue its next leg of expansion in the Tier-2 cities, where the firm sees wealth management opportunities given the enormous wealth created in these cities in recent years.
Nearly 60 per cent of the firm’s revenues come from private wealth management verticals , which are the most significant of the seven verticals that it operates in, according to Kohli.
“We are already present in the major metros. The next expansion for us will be in Tier-2 cities, which have a good amount of demand, and hardly any talent. That’s where we see opportunity as people with a lot of wealth will need local people to help them manage their wealth in an organised manner. We have studied the new Tier-2 markets we want to enter,” Kohli told businessline here. In the current financial year, Client Associates has set up offices in three new geographies — Ahmedabad, Kochi and Patna.
Kohli said the company, which started its journey in 2002, plans to add another 100 professionals in the next three years, taking its overall headcount to 300. This firm currently has about 1,100 relationships (including 400 family offices) with a client base of 4,000 to 5,000 HNIs and UHNIs, besides Family Offices.
“Our dream is to become the most admired private wealth management platform (rich man’s bank) in the country,” Kohli said.
There is more and more wealth creation across the country, he said, noting that every 30 minutes a High Networth Individual (HNI) is born in India. Each day, India produces an Ultra High Networth Individual (UHNI) and a billionaire every month.
“Wealth management has today become a critical need for any wealthy family or any individual,” Kohli added.
Client Associates has also set up a Category II Alternate Investment Fund (AIF) for which SEBI approval has been obtained. “We have in the last eight years built a track record. Now, we are geared to take the AIF structure to a broader universe of clients such as HNI and UHNi, and not restrict them to multi-family offices. We are looking to mobilise ₹500 crore for the Cat-II fund”, he said.
On the major trends sweeping the wealth management industry in India, Kohli said there are four major trends -- financialisation of savings; equities becoming a mainstream asset class; a lot of traditional businesses unlocking value in existing ones to invest in new age businesses, and Indians looking at becoming global Investors. Many Indians are looking at investing abroad in the alternate markets, he said.
Client Associates is also examining the possibility of setting up a presence in GIFT City to cater to the needs of several Indian family offices, who are keen to operate out of the country’s sole international financial services centre. Having a presence in GIFT City will help the UHNIs and their family offices in availing a facility of larger outward and inward remittances in foreign currency of their choice.
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