HIGH NETWORTH individuals (HNIs) and ultra HNIs are now allocating more wealth to unlisted stocks, according to Sailesh Balachandran, founder and joint-CEO and Maneesh Kapoor, founder, and joint-CEO, TriGen Wealth, a subsidiary of NSE-listed Prime Securities.
While they have consistently explored PRE-IPO investments, it is now “happening on a much larger scale,”they said.
“The availability of opportunities and enhanced information tools has been pivotal in driving this trend,” they said.
They are also showing a strong preference for global investments and the startup space, often opting for selfexecution strategies. Wealth is being driven by Employee Stock Ownership Plans (ESOPs)”.
With the recent easing of regulations by Sebi, we anticipate further wealth generation within new-age startups, enabling many senior executives to directly benefit,” they said.
Several platforms such as InCred Money, Sharescart and UnlistedZone offer easy access to trade unlisted securities. Wealth managers, Balachandran and Kapoor said, are actively adapting to the evolving needs of new-age HNIs and younger affluent clients by leveraging technology and data analytical tools.
“In our view, advisory services have traditionally cantered on goal-led strategies rather than purely product-led approach,” they said.
Wealth products are positioned purely to meet the specific requirements, Balachandran and Kapoor said.
Over the past decade, Tier-II and Tier-Ill cities have evolved significantly, maturing in terms of advisory needs. With increased access to information, their expectations now match those of metro clients.
The newer generation in these smaller cities is as aggressive and demanding as their metro counterparts, as evidenced by data on private equity investments and startup initiatives, Balachandran and Kapoor said.
Integrating estate planning, philanthropy, and legacy building for clients who are well-informed, widely travelled and possess a broader global perspective is central.
Regulatory developments play a crucial role in enhancing transparency in advisory services and ensuring fiduciary accountability. These advancements have encouraged more HNIs and UHNI engage with the financial ecosystem.
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