Revisiting the Special Address - Rajmohan Krishnan, Principal Founder & MD, Entrust Family Office at LP Summit Mumbai '25.
India presents a unique confluence of high-growth opportunities, structural reforms, and entrepreneurial dynamism. Amid the rapidly evolving landscape, family offices play a pivotal role in deploying capital efficiently, with a focus on alternative asset allocations that foster long-term value creation.
Over the years, we have witnessed a paradigm shift in how family offices approach investments, moving beyond traditional portfolios to embrace a more dynamic, diversified strategy.
At the heart of this evolution is the need for strategic diversification and risk management. The core mandate of a family office has always been to preserve and grow wealth across generations. In today’s volatile and complex financial environment, this requires a sophisticated approach to diversification.
Multifamily offices (MFOs) are increasingly integrating alternative assets—private equity, venture capital, real estate, hedge funds, and private credit—into their investment strategies. These assets offer several advantages: they provide diversification benefits, hedge against inflation, and deliver higher and uncorrelated returns compared to traditional asset classes. Unlike public markets, which are susceptible to short-term volatility, alternative investments offer long-term value creation and stability. What sets MFOs apart is their ability to curate bespoke investment opportunities that align with the risk tolerance, liquidity needs, and long-term objectives of multiple families. By taking a structured yet flexible approach, MFOs enable their clients to capitalize on opportunities that go beyond traditional equities and fixed income-investments.
Another significant evolution in the role of family offices is their access to institutional-grade opportunities. Historically, exclusive private market opportunities were accessible only to large institutional investors. Today, MFOs leverage their scale, networks, and expertise to gain entry into high-quality investment opportunities.
Through strategic partnerships, MFOs unlock access to co-investment deals, direct private market investments, and unique venture capital opportunities. Moreover, they facilitate knowledge-sharing among families, enabling them to capitalize on emerging trends such as impact investing, sustainable finance, and technology-driven ventures. This shift empowers families to make informed, value-driven investment decisions that align with their legacy and aspirations.
But access alone is not enough. The growing complexity of alternative investments necessitates a robust, end-to-end execution framework—one that MFOs are uniquely positioned to provide. From due diligence and structuring to documentation, execution, monitoring, and reporting, MFOs offer a seamless investment lifecycle management process.
This full-service approach ensures efficiency, compliance, and transparency—key elements in navigating intricate private market transactions. With dedicated investment teams, legal expertise, and governance frameworks, MFOs create a structured ecosystem that enables families to invest with confidence while mitigating operational and regulatory risks.
Beyond execution, what makes MFOs truly effective in alternative asset allocation is the alignment of interests with accredited investors and LPs. A well-structured MFO typically comprises accredited investors and limited partners (LPs), including the founders of the MFO themselves as LPs. This alignment fosters a culture of trust and shared success, as MFO leadership is not merely advising clients but actively investing alongside them.
This model brings sophistication into the decision-making process. MFO leaders have first-hand experience in investment strategies, risk assessment, and market dynamics. It also instils a higher degree of accountability and prudence in the investment process, ensuring that clients receive advice that is not just theoretical but deeply rooted in practical, lived experience.
The role of family offices in alternative asset allocation is only set to expand. As wealth management becomes more personalized, dynamic, and impact-driven, MFOs will continue to be at the forefront of delivering tailored, high-quality investment solutions. Their ability to navigate complexities, unlock exclusive opportunities, and align interests with clients positions them as indispensable partners in the journey of wealth preservation and growth.
Looking ahead, the alternative investment ecosystem in India is poised for significant growth. As investors, whether family offices, institutional LPs, or venture capital firms, we all have a role to play in shaping this evolving landscape. By fostering collaboration, leveraging deep expertise, and embracing innovation, we can unlock new opportunities and drive superior, sustainable returns.
No VCCircle journalist was involved in the creation/production of this content.
