asset allocation: Investments in the private market represent 18 pc of the asset allocation for family offices, UHNIs in 2021

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Private market investments remain the alternative investment of choice with allocations to startups and venture capital funds accounting for 18% of the overall pie for family offices and high net worth individuals in 2021, according to a report. According to the Private Market Monitor, the changing face of the startup ecosystem with the wave of initial public offerings and acquisitions has created a new category of First Generation Wealthy Individuals (UHNIs) who are proactively exploring the path to success. family office to manage their wealth.

The Private Market Monitor is a survey of more than 100 family offices and UHNIs launched by trica in partnership with AZB & Partners and EY.

According to the report, there is an increasing importance of start-up investments. “Private market investments remain the alternative investment of choice with allocations to startups and venture capital funds accounting for 18% of the overall pie,” he said.

That’s quite aggressive compared to a 15 percent allocation to other alternatives (real estate, infrastructure, art, etc.), 20 percent allocated to fixed income and 36 percent to listed stocks.

In addition, over 83 percent of family offices have an allocation to private markets that represents more than 10 percent of their overall asset allocation; and this number has steadily increased over the past five years for 50 percent of respondents and has doubled for 40 percent of participants.

The main factors that investors rated for making direct investments in startups were the quality of senior management, high-growth market opportunities, and the presence of a strong trade gap.

Around 50% of family offices surveyed preferred the seed stage to Series A to enter a seed investment, 40% preferred late trades to pre-IPO deals, while 25% said they preferred have a portfolio well distributed between the stages.

FinTech (82 percent) and enterprise tech (71 percent) were the top two preferred industries with a clear majority, followed by other industries such as consumer tech (68 percent), healthcare health (50 percent), agritech (35 percent percent), edtech (42 percent).

“The rapid expansion of UHNIs and family offices in India, coupled with the positive exit scenario for early stage investments over the past year, has sparked a growing investor appetite for more active management of their private market portfolios. ”, Nimesh Kampani, co-founder and CEO of Trica said.

trica is a LetsVenture company that creates software products for stock management and trading.

LetsVenture, founded in 2013, is a startup investment platform with over 7,000 angel investors, a portfolio value of over USD 3 billion and an Angel AIF (Alternative Investment Fund) with assets under management of over 64 million USD.


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