Growing Attention on Family Investment Fund Amid Global Business Expansion

20 Aug, 2023

Growing Attention on Family Investment Fund Amid Global Business Expansion

In a captivating panel discourse centered around succession planning within family-owned enterprises, the Indian Family Business Awards 2022's second edition, co-hosted by Moneycontrol in partnership with Waterfield Advisors and Grant Thornton, presented a unique vantage into the ever-evolving panorama of family businesses in India. Facilitated by Ashwin Mohan, Editor (Deals) at Moneycontrol, this discussion rigorously explored diverse facets of family-run businesses, unearthing intriguing patterns within this domain.

A salient focal point that emerged from the dialogue was the burgeoning curiosity surrounding the family investment fund paradigm. Esteemed speakers delved into the dynamic factors shaping succession strategies within family offices, meticulously dissecting both transformative shifts and enduring traditions. The spotlight squarely landed on India's pioneering International Financial Services Center (IFSC) - GIFT City, an enclave that empowers family offices to establish a pioneering fund management entity known as the Family Investment Fund (FIF) within its precincts.

During the discourse, Soumya Rajan, Founder & CEO of Waterfield Advisors, furnished a medley of remarkable insights. She highlighted, "The Family Investment Fund introduced within GIFT City has captivated the attention of family enterprises," further noting that the average investment share of family businesses in private markets has surged from a mere 1 percent in 2011 to approximately 12 percent at present. This elevation underscores the heightened propensity of family-owned businesses to diversify and engage with private market opportunities, indicative of a broader shift in investment strategies.

The evolving dynamics of family investment funds and their resonance within India's financial landscape signify a significant departure from conventional approaches. As businesses increasingly navigate the intricacies of international expansion, these new avenues hold promise in enabling families to manage wealth, growth, and succession with a distinct and innovative edge.