Chennai: Almost half ultra-high net-worth individuals (UNHWIs) in India are expected to increase their allocation to private equity in 2019, as they look for alternative investment options.
About 46 per cent of ultra rich are likely to increase their investment to private equity as an asset class in 2019 compared to 37 per cent in 2018, according to a survey by Knight Frank. Such a high percentage makes India top in Asia and the fourth highest globally in terms of increase in allocation.
Another 29 per cent would maintain the same level of investment in PE and in total 75 per cent of the ultra rich are positive about private equity investment.
“Indian super rich are progressively looking at exploring alternative investment avenues for wealth creation. Private equity offers a structured investment option for UHNWIs looking for long-term investment. In India, where the volume of wealth is rising the fastest globally, UHNWIs are expected to decrease cash exposure and increase their allocation to private equity in 2019, as local investors grow in sophistication. In the Indian market, there is a strong bend towards equities and private equities,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
On an average, Indian UHNWIs allocate 4 per cent of their investment portfolio for private equity, which is similar to what they set aside for gold. However, their PE allocation is lesser than the global average of 7 per cent and the same as the Asian average....