Latest news with #familyoffices
Khaleej Times
3 days ago
- Business
- Khaleej Times
How to invest like a rich person amid market volatility
The wealthy are increasingly seeking investment opportunities that offer less correlation to the public equity markets that have long dominated their portfolios. That search has taken on new urgency following renewed market turbulence in the wake of the Trump administration's April 3 tariff announcements. While shifting towards bonds and cash equivalents provides a degree of insulation, it often comes at the expense of meaningful returns. A growing cohort of family offices and sophisticated investors are now reallocating capital towards private assets — a broad universe that includes private equity, private credit, real estate, infrastructure, and venture capital. These markets have expanded dramatically over the past decade. According to the Economist, private assets under management have surged to $24 trillion (Dh88 trillion) from $10 trillion (Dh36 trillion) a decade ago. That trajectory shows no sign of slowing. Bain & Company estimates that private market AUM will rise to between $60 trillion and $65 trillion by 2032. If realised, private assets would represent nearly one-third of global investable capital — more than twice the projected growth rate of public markets. The Rise of Private Credit Among the most striking growth areas is private credit. Once a niche segment of the market, it has grown tenfold since 2009, with AUM approaching $2 trillion by the end of 2023, according to McKinsey. As traditional banks retreat from corporate lending, the wealthy have stepped in to fill the void — drawn by the promise of attractive yields in a persistently low-rate environment. Fewer Public Listings, More Private Opportunity This structural shift is occurring alongside a broader decline in public market participation. The number of publicly listed companies globally fell from 62,959 in 2018 to 61,170 by the close of 2024. The US trend is even more pronounced: listed firms have declined from a 1996 peak of 7,300 to just 4,300 — a drop of more than 40 per cent. A combination of regulatory burden, increased merger activity, and the abundant availability of private capital has made remaining private an increasingly attractive option. Consequently, an estimated $2.6 trillion in 'dry powder' — capital raised but not yet deployed — now sits on the sidelines, ready to be invested. From the Magnificent Seven to Emerging Growth For forward-looking investors, the appeal of private markets lies not only in diversification but also in early access to the next generation of growth. Sectors such as Artificial Intelligence, climate technology, and biotechnology often reach scale long before entering the public arena. Many HNWIs are now looking beyond the overstretched valuations of publicly listed giants — the so-called 'Magnificent Seven' — to back tomorrow's innovators earlier in their life cycle. Market-Leading Private Asset Products Firms such as Blackstone and KKR have emerged as leading providers of private market access for qualified investors. Examples of a selection of key offerings include: Blackstone Private Equity Strategies Fund (BXPE): Launched in 2024, this non-listed evergreen fund offers individual investors access to Blackstone's flagship private equity platform. Sector exposures include digital infrastructure, technology, business services, financials, and aerospace. Blackstone Private Credit Fund (BCRED): Launched in 2021, it is a direct lending vehicle that targets middle-market companies in the US. BCRED provides a scalable entry point into the fast-growing private credit space. Blackstone Real Estate Income Trust (BREIT): A pioneering launch in 2017, this is a non-listed REIT that offers exposure to income-generating, institutional-grade real estate. Blackstone Mortgage Trust (BXMT) : A publicly listed real estate investment trust focused on originating senior loans secured by commercial real estate assets. Similar offerings are available from other global private asset managers, including Apollo, Carlyle, Partners Group, and Brookfield. The SLY Trade-Off: Safety, Liquidity, Yield Investors entering private markets must carefully consider what might be called the 'SLY' triangle — Safety, Liquidity, and Yield. Typically, optimising for one requires trade-offs with the others. The pursuit of high yield, for example, often entails reduced liquidity and higher risk exposure. For investors accustomed to daily liquidity and mark-to-market transparency, the realities of private markets — multi-year lockups, irregular capital calls, limited secondary market access — can be sobering. Fees also tend to be high, with incentive structures that may not always align with investor interests. Valuation presents another risk. Unlike public assets, private investments are typically valued on a quarterly basis — and often by the fund managers themselves. This creates both opacity and potential conflicts of interest that can be unsettling for those new to the asset class. Proceeding with Caution — and Conviction Given these complexities, financial advisors routinely urge the wealthy to approach private markets with caution and purpose. Allocations should reflect each investor's liquidity needs, investment horizon, and risk appetite — and remain a portion of a well-diversified portfolio. For those prepared to navigate the illiquidity, complexity, and longer time horizons, private assets offer more than just higher potential returns. They offer enhanced risk-adjusted returns, particularly in an era of volatile public markets and fading alpha. Private markets are no longer the preserve of institutional behemoths. But accessing their full potential requires the same level of discipline, due diligence, and long-term perspective.
Bloomberg
4 days ago
- Business
- Bloomberg
UBS' Lo on APAC Family Offices, Markets
The China Show Amy Lo, Co-Head of Global Wealth Management APAC, discusses the outlook for family offices and latest market sentiment. She speaks with David Ingles from the sidelines of the 'UBS Asian Investment Conference' in Hong Kong. (Source: Bloomberg)
Entrepreneur
6 days ago
- Business
- Entrepreneur
Capital Has Become More Judicious, Artha to Bet on Discipline and DPI: Anirudh Damani
When Anirudh Damani returned to India after selling a venture in the US, he encountered something in India's entrepreneurial landscape that changed the trajectory of his journey and led to the creation of Artha Venture Fund. Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. When Anirudh Damani returned to India after selling a venture in the US, he encountered something in India's entrepreneurial landscape that changed the trajectory of his journey and led to the creation of Artha Venture Fund. Damani says he noticed a stark mismatch in the startup environment and the business models many founders were trying to replicate. "India was still very much obsessed with creating clones of US businesses. But the Indian ecosystem resembled nothing like the US, yet we wanted to create ventures like the US." Driven by a desire to understand how Indian entrepreneurship worked, Damani began backing startups. "In India, you can't expect to give gyan or expect to receive 'gyan' without putting some money into it," he quips. The early investments were more of an educational pursuit than a financial strategy. "I started investing in startups with the pure intention to understand how Indian entrepreneurship works." Artha began as a family-backed initiative, co-investing with other family offices. By 2019, after several successful exits and a positive track record, the vision expanded. "The idea came up, why don't we also set up a fund for our family?" Other family offices, impressed by Artha's performance and ethos, opted in. "They said, 'If you are going to create a fund, and because you are thinking as a family office and not as a fund manager, can we also join the journey?'" The result was India's first micro VC fund. According to Damani, Artha Venture Fund currently manages close to USD 200 million in assets under management (AUM), backed by approximately 150 family offices. The Family Office Advantage Artha's family office roots define its investment approach, setting it apart distinctively from traditional capital firms. "For a typical fund, it's all about AUM. They're all about deployment velocity," Damani says. "Our intent here is liquidity and wealth." According to Damani, the firm's operation is outlined by three core principles that guide its investments. First, being capital protection, second, emphasizing a disciplined process for generating returns. He says funds shift their strategy mid-stream. "You may be a deep tech fund or a woman-focused fund. But because the deal isn't what you expected, you pivot to crypto or AI. That doesn't happen with a family office fund." Third, being pride, and investing in ventures that the firm can proudly showcase to peers. "We want to invest in things we want to talk about," he says. One such investment is space-tech startup Agnikul. "Even today, I am very excited about the company. Any family office that knows me knows about Agnikul. Focused on DPI, Not Just AUM Damani said that he prefers the term "venturepreneur" to describe his role, which means an entrepreneur whose business is backing other entrepreneurs. He credits veteran investor Sudhir Sethi of Chiratae Ventures for coining that perspective. "We are also in the business of entrepreneurship, but our business is backing entrepreneurs." But this focus fundamentally translates into a different metric of success. "Our metrics are: how much capital do we return? How can we beat the Nifty risk-adjusted? We have to beat the Nifty by at least 3 times in the same time period," Damani says. According to the partner, Artha remains fixated on value creation and capital return. The patient, principle-driven strategy looks to have paid off, as Damani recounts a meeting with a founder who sought a USD 10 million valuation despite recording zero revenue. "I said, when you reach INR 2 lakh a month in revenue, call me." A year later, the founder did. Artha then invested at an INR 5 crore valuation. According to Damani, the startup today does INR 1.6 crore in monthly revenue and has built an AI-driven recruiting platform for freshers within just four years. Investor Risk Talking about investor risk, Damani feels that the risks are fairly simple. The ecosystem in general has lost money in the last 24 months, and the number of investors has gone down dramatically. "The amount of liquidity available to investors has gone down. But there is money for companies that are going to be profitable or are profitable. Capital has become way more discerning and judicious." The capital is not freely available like it used to be, Damani says. Companies and founders who are cash-burn first will never be profitable and will have a hard time raising capital. "But the founders that focus on the unit economics, that are building scalable ventures, that are self-sustaining, there is lots of money available. You can get as much as you want. But to do that, you have to create a business," added Damani.
Zawya
23-05-2025
- Business
- Zawya
Middle East Investors Summit to host first-of-its-kind Family Office Intiative
Exciting program includes curated networking; and closed-door learning for family office leaders Abu Dhabi, UAE – The Middle East Investors Summit - Abu Dhabi edition, the region's premier gathering of institutional investors, family offices and innovators from around the world, returns to the Rosewood Abu Dhabi from 27-28 May 2025. Presented in partnership with the Emirates Family Office Association (EFOA) and NYU Abu Dhabi as the Summit's academic partner, the Summit's 2025 edition will host an interactive program for family office leaders and investment professionals titled 'The Middle East Wealth & Investment Leadership program'. The prestigious entities will combine to host immersive, interactive sessions for participants - in a first-of-its-kind initiative. Families and investment professionals will be equipped with tools to strengthen their network, perfect their leadership skills and further sophisticate their operations. It is the first time direct, world-class investment in the upskilling of family offices has been made available in the Middle East. Adam Ladjadj, Founder and Vice Chairman, Emirates Family Office Association, said: 'This innovative program at Middle East Investors Summit reinforces the Association's commitment to excellence in family office governance and sophistication. We are proud to partner and share this vision with one of the world's leading universities - NYU Abu Dhabi - at an event showcasing the UAE's flourishing business and financial environment. 'I look forward to welcoming the program's first cohort as we help families make better decisions in preserving and growing their wealth; modernizing their business structures and scaling their operations internationally.' Amol Dani, Chief Operating Officer, NYU Abu Dhabi, said: 'We are very proud to collaborate with the Emirates Family Office Association on this first-of-its-kind initiative. At NYU Abu Dhabi, we believe in the power of education to drive meaningful change, and this program is a great example of that. It brings together our academic expertise with the practical needs of today's investment and family office landscape, creating a space for learning, connection, and real impact.' All EFOA-sponsored program participants will be active contributors in an environment geared to rich learning, connections, and insights. Participants will also receive an NYU Abu Dhabi certification on completion. Hosted by Collab, the Summit and its program are geared to high-level business figures; leading investors and family office professionals passionate about face-to-face interactions, debate, knowledge-sharing and connectivity – amid the backdrop of the Middle East's thriving financial landscape. The Summit's welcoming keynote will be given by H.E. Dr. Ahmed Al Banna, Chairman of the Emirates Family Office Association, with sessions to follow exploring topics including changing UAE / GCC regulatory frameworks as drivers of new investment opportunities and how SWFs are navigating uncertainty amidst the rapidly changing geopolitical landscape. Those in the family office and investment sectors, in the UAE and internationally, who are interested in the program and in becoming a member of EFOA can find out more by contacting info@ About Middle East Investors Summit – Abu Dhabi edition The Middle East Investors Summit – Abu Dhabi edition, hosted by Collab, is a premier event gathering institutional investors, family offices and innovators from across the Middle East and beyond. It is an elite gathering of like-minded individuals who are passionate about investment. Collab is set to host its Riyadh edition of the event in Saudi Arabia in October. About Emirates Family Office Association The Emirates Family Office Association is an independent, not-for-profit, membership organisation designed to support the UAE and global family office communities. EFOA strives to provide resources, education, and support to family offices, with no associated membership fees, while fostering collaboration and innovation among its member organisations About NYU Abu Dhabi NYU Abu Dhabi is the first comprehensive liberal arts and research campus in the Middle East to be operated abroad by a major American research university. Times Higher Education ranks NYU among the top 35 universities in the world, making NYU Abu Dhabi the highest globally ranked university in the UAE and MENA region. NYU Abu Dhabi has integrated a highly selective undergraduate curriculum across the disciplines with a world center for advanced research and scholarship. The university enables its students in the sciences, engineering, social sciences, humanities, and arts to succeed in an increasingly interdependent world and advance cooperation and progress on humanity's shared challenges. NYU Abu Dhabi's high-achieving students have come from over 120 countries and speak over 100 languages. Together, NYU's campuses in New York, Abu Dhabi, and Shanghai form the backbone of a unique global university, giving faculty and students opportunities to experience varied learning environments and immersion in other cultures at one or more of the numerous study-abroad sites NYU maintains on six continents.
Bloomberg
22-05-2025
- Business
- Bloomberg
It's Never Been Harder to Make It in Venture Capital
There's a crisis brewing for the next generation of venture capitalists. While Silicon Valley heavyweights like Sequoia Capital and Andreessen Horowitz are still able to bring in big checks, up-and-coming VCs are finding fundraising increasingly difficult. Hundreds of small firms — which make up the majority of the VC industry — are struggling to raise money in the current market. Traditional investors in venture funds, like family offices and wealthy individuals, have pulled back thanks to high interest rates and economic uncertainty. Meanwhile, universities and their endowments have come under increasing financial pressure from House Republicans and the Trump administration.
