How The Rise Of Family Offices & HNIs Is Boosting Venture Capital Landscape

How The Rise Of Family Offices & HNIs Is Boosting Venture Capital Landscape

SUMMARY

While the overall population is growing at 2% per annum, HNIs are growing at 16%, and UHNIs are at a double-digit rate

Individual investors and domestic mutual funds (18.8%) own a higher share of India Inc. than FPIs (17.6%)

HNIs and UHNIs have realised that businesses should be one of their investments, not their sole focus

A significant trend in the HNI and UHNI space is that substantial value creation in traditional businesses is leading them to go public, supported by favorable market conditions. These businesses are experiencing annual growth rates of 10-15%, so there is a strong case for unlocking value. 

As a result, many of them are setting up their own family offices, and the growth of family offices is exceeding that of our population. While the overall population is growing at 2% per annum, HNIs are growing at 16%, and UHNIs are at a double-digit rate. Consequently, HNIs and UHNIs are considering diversifying beyond their core businesses, which have been their primary asset class to help mitigate risk. 

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