A wealth banker plans to open a family office this spring, when he is expected to sell some of his stock. He plans to shun a fast-growing and popular new asset class.
Uday Kotak is estimated to be worth north of $10 billion by «Bloomberg», putting him in the top-ten of India's richest few. The Indian-born mogul, Asia's wealthiest banker, plans to open a family office later this year, when restrictions on selling part of his 30 percent stake in Kotak Mahindra Bank lift, according to «Bloomberg».
Kotak is required to lower his stake in the bank to 15 percent over the coming two years – making for a cash windfall. The family office will be set up by Venkat Subramanian, who currently runs a long-short fund for Kotak.
Subramanian is working with Kotak’s family to hire for the family office, which is expected to launch in spring. Kotak Mahindra is a top-five Indian bank by number of branches.
Crypto Face-Off
Subramanian faces the delicate task of investing the family's wealth without competing with the bank. He plans to eschew debt, for example. The family will also steer clear of the hot market for cryptocurrencies.
«While the concept of crypto-currency is alluring, as its value cannot be influenced by any government, the family office will not look at investing in it,» Subramanian said. That leaves stocks, private equity, and real estate investments.
While retail investors in Asia have plowed into cryptocurrencies head-on, the wealthy have so far proceeded with caution – and interest. Traditional wealth managers like UBS have bashed digital coins as «not real money», setting up a face-off with cryptocurrency issuers, providers, and exchanges.
