Start-ups are one of the in­vest­ment op­tions that fam­ily of­fices look at and this is be­cause they can give a good re­turn and are dis­rup­tive”

Business Today - - BUSINESS - T.V. Mo­han­das Pai, Co- founder, Aarin Cap­i­tal

In­dia is the chal­lenge of seg­re­gat­ing busi­ness and per­sonal as­sets. It is for in­stance, not un­com­mon to find that in some mid-size fam­i­lies the CFO in the com­pany is also manag­ing the per­sonal wealth. That needs to change with more pro­fes­sion­als and ad­vi­sors specif­i­cally ad­vis­ing the busi­ness own­ers on fam­ily matters be­cause the com­plex­ity of is­sues they need to deal with to­day have changed. Reg­u­la­tions are also get­ting a lot tighter and pro­mot­ers need to be on the right side of the law and not take chances.

So, how is the wealth of the rich put to work and how much re­turns do they ex­pect? Most fam­ily of­fices, as is ap­par­ent, aim to keep the fam­i­lies sat­is­fied with a post-tax re­turn of at least be­tween 10 to 12 per cent on their over­all in­vest­ment cor­pus. “It is es­sen­tially su­pe­rior eco­nomic re­turns that we are proud of and work hard for. But along with the re­turns, we need to en­sure the team is get­ting bet­ter, learn­ing more about the com­pa­nies it is in­vest­ing in,” says K. G. Lak­sh­mi­narayanan, Direc­tor at Cataily

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