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Offices
Mumbai
+91-22-66210700

142, 14th Floor, Maker Chambers VI, Nariman Point, Mumbai - 400021

7, Avighna House, 82, Dr. Annie Besant Road, Worli Naka, Siddharth Nagar, Worli, Mumbai, Maharashtra 400018

SEBI Office: Plot No. C4-A, 'G' Block, Bandra-Kurla Complex, Bandra(East), Mumbai - 400051

Noida
+91-88-60824008

18B106, 18th Floor, Berger Delhi One, Sector 16B, Noida - 201301

SEBI Office: NBCC Complex, Office Tower-1, 8th Floor, Plate B, East Kidwai Nagar, New Delhi – 110023

Bengaluru
+91-80-67433089

815, 8th Floor, The Estate, Regus Business Centre, Dickenson Road, Bengaluru - 560042

SEBI Office: 2nd Floor, Jeevan Mangal Building, No.4, Residency Road, Bengaluru - 560025

Chennai
+91-44-66385532

Workafella No.10, Uthamar Gandhi Salai, Nungambakkam High Road, Nungambakam, Chennai - 600034

SEBI Office: 7th Floor, 756-L, Anna Salai, Chennai - 600002

Kochi
+91-484-4148112

Centre A, 8th Floor, Alapatt Heritage Building, MG Road, Kochi - 682035

SEBI Office: 6th Floor, Finance Tower, Kaloor, Kochi - 682017

Goa
+91-99-23191607

Unit No. 701, A Wing, 7th floor, Sunteck Kanaka Corporate Park, Patto, Panjim, Goa - 403001

SEBI Office: 6th Floor, EDC House, Atmaram Borkar Road, Panaji - 403001, Goa

Hyderabad
+91-98-21084780

WeWork Krishe Emerald – 03B104, Kondapur Main Road, Laxmi Cyber City, Whitefields, Kondapur, Hyderabad, Telangana 500081

Pune
+91-77580-42089

1-111, Raheja Woods 8, Central Avenue, Kalyani Nagar, Pune, MH 411006

Family Office trends to watch out for in 2023

article • Investment Management
Kshitij Kumar Pandey
13 January 2023 | 5 minutes

2022 was a difficult year for investors, with most asset types facing challenging conditions. Unfortunately, we do not foresee 2023 bringing any immediate respite. On the contrary, global growth will likely continue to slow down this year as central banks further tighten the monetary policy. In such a recession-threatened year, Family Offices across the globe will be navigating through the market volatility with caution. However, with a long-term and diversified asset allocation strategy, most uncertainties can be dealt with.

In 2023, we expect a few common themes to spring up in the family office landscape globally as well as in India.

1. Global Diversification

In 2022, we witnessed Family Offices setting up shops in Singapore and Dubai. Thanks to the friendly regulatory environment in the aforementioned countries, they have become the new haven for Family Offices. UHNIs will opt for global diversification as global equities will offer better entry points in 2023. In addition to the Liberalised Remittance Scheme (LRS), global investments are getting fuelled by liberalized regulations on overseas direct investment (ODI) and overseas portfolio investment (OPI).

2. Alternative Investments

Private equity has become the dominating focus area for Family Offices, and there is immense scope for expansion in the coming year. In a recent survey conducted among private equity and venture capital funds across stages, it was found that 70% of funds report an increased share of domestic LPs in number, except for funds that have seen oversubscription from international LPs. Most funds also reported an increased share of domestic LPs in terms of commitment value, particularly for funds that have GPs with a strong understanding of the Indian ecosystem.

3. Multi-Asset Portfolios

In a year that started with the gloom of recessionary trends globally, investors today want to look at preserving the gains - measly or otherwise, rather than focus on capital growth at least for the next 6-12 months. With long tenure fixed income portfolios bleeding through most of 2022, a skewed approach toward either of the two major asset classes may not work. Multi-asset portfolios and solutions are back in focus and for the right reasons. Equities could play truant, the peak of interest rates may still be away and while gold has shown some shine, it is still prudent to look at safer government bonds whether domestic or global. The best solution remains to use the asset allocation model with allowance for either of the two asset classes (plus gold) to be played tactically. There was never a time to forget risk-vs-reward, this time is no different.

4. Focus on ESG

SEBI recently launched Business Responsibility and Sustainability Reporting (BRSR) - a new framework to increase the transparency of corporate disclosures around sustainable practices and help market participants explore impact investing risks and opportunities better. From the FY 2022-23, it is mandatory for the top 1000 listed companies in India to be compliant with BRSR. For other listed companies including those that have listed specified securities on the Small and Medium Enterprises (SME) exchange, it is voluntary. We expect BRSR to play an important role in increasing Indian Family Office’s ESG participation.

5. Tech Adoption

While the concept of Family Offices is on the rise globally, they are yet to align with the rapid technological enhancements in the world. Considering the complexities of investment decisions they have to make on a regular basis, Family offices need scalable solutions and sophisticated platforms that help them do more with fewer resources and lead to better decision-making insights. It is imperative for Family Offices to think tech-first. In 2023, we expect Family Offices to upgrade to purpose-built platforms, with data cores designed for multi-asset class portfolio management and accounting.

Despite the global slowdown, the popularity of Family Offices will continue to surge in 2023. It will be interesting to observe how the ultra-wealthy navigate through the recessionary turmoil.

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Your legacy awaits



Topic of Enquiry*:


How did you discover Waterfield?







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Follow Us
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Offices
Mumbai
+91-22-66210700

142, 14th Floor, Maker Chambers VI, Nariman Point, Mumbai - 400021

7, Avighna House, 82, Dr. Annie Besant Road, Worli Naka, Siddharth Nagar, Worli, Mumbai, Maharashtra 400018

SEBI Office: Plot No. C4-A, 'G' Block, Bandra-Kurla Complex, Bandra(East), Mumbai - 400051

Noida
+91-88-60824008

18B106, 18th Floor, Berger Delhi One, Sector 16B, Noida - 201301

SEBI Office: NBCC Complex, Office Tower-1, 8th Floor, Plate B, East Kidwai Nagar, New Delhi – 110023

Bengaluru
+91-80-67433089

815, 8th Floor, The Estate, Regus Business Centre, Dickenson Road, Bengaluru - 560042

SEBI Office: 2nd Floor, Jeevan Mangal Building, No.4, Residency Road, Bengaluru - 560025

Chennai
+91-44-66385532

Workafella No.10, Uthamar Gandhi Salai, Nungambakkam High Road, Nungambakam, Chennai - 600034

SEBI Office: 7th Floor, 756-L, Anna Salai, Chennai - 600002

Kochi
+91-484-4148112

Centre A, 8th Floor, Alapatt Heritage Building, MG Road, Kochi - 682035

SEBI Office: 6th Floor, Finance Tower, Kaloor, Kochi - 682017

Goa
+91-99-23191607

Unit No. 701, A Wing, 7th floor, Sunteck Kanaka Corporate Park, Patto, Panjim, Goa - 403001

SEBI Office: 6th Floor, EDC House, Atmaram Borkar Road, Panaji - 403001, Goa

Hyderabad
+91-98-21084780

WeWork Krishe Emerald – 03B104, Kondapur Main Road, Laxmi Cyber City, Whitefields, Kondapur, Hyderabad, Telangana 500081

Pune
+91-77580-42089

1-111, Raheja Woods 8, Central Avenue, Kalyani Nagar, Pune, MH 411006