Client Associates sets its sights on tier-2 cities amid wealth surge, plans to expand footprint in 5-6 cities in 3 years

Client Associates, the country’s largest multifamily office provider, is on an expansion spree, looking to ramp up its geographical footprint to 1415 cities in the next three years, from its existing presence in nine cities, its cofounder Himanshu Kohli has said.

The Gurugramheadquartered wealth management firm, which has liquid assets under advice of about $5.3 billion, would pursue its next leg of expansion in the tier2 cities, where the firm sees wealth management opportunities given the enormous wealth created in these cities in recent years.

Nearly 60 per cent of the firm’s revenues come from private wealth management verticals , which are the

Himanshu Kohli, Co-founder, Client Associates

most significant of the seven verticals that it operates in, according to Kohli. “We are already present in the major metros. The next expansion for us will be in tier2 cities, which have a good amount of demand, and hardly any talent. That’s where we see opportunity as people with a lot of wealth will need local people to help them manage their wealth in an organised manner. We have studied the new tier2 markets we want to enter,” Kohli told businessline here. In the current financial year, Client Associates has set up offices in three new geographies — Ahmedabad, Kochi and Patna.

Kohli said the company, which started its journey in 2002, plans to add another 100 professionals in the next three years, taking its overall headcount to 300. This firm currently has about 1,100 relationships (including 400 family offices) with a client base of 4,000 to 5,000 HNIs and UHNIs, besides Family Offices. “Our dream is to become the most admired private wealth management platform (rich man’s bank) in the country,” Kohli said.

WEALTH CREATION

There is more and more wealth creation across the country, he said, noting that every 30 minutes a High Networth Individual (HNI) is born in India. Each day, India produces an Ultra High Networth Individual (UHNI) and a billionaire every month. “Wealth management has today become a critical need for any wealthy family or any individual,” Kohli added.

Client Associates has also set up a Category II Alternate Investment Fund (AIF) for which SEBI approval has been obtained. “We have in the last eight years built a track record. Now, we are geared to take the AIF structure to a broader universe of clients such as HNI and UHNI, and not restrict them to multifamily offices. We are looking to mobilise ₹500 crore for the CategoryII fund”, he said.