According to the Attitude Survey conducted by Knight Frank, 46% of Indian ultra-high net worth individuals (UHNWIs) are likely to increase their investment in Private Equity segment in 2019, 9% higher compared to the year 2018. Globally, 31% of survey respondents said that they are going to increase allocation to Private Equity in 2019, a higher percentage when compared with 25% citing to have increased allocation in 2018. The positive attitude of UHNWIs towards investments in the asset class has also gone up in Asia with 26% expecting an increase when compared to 20% who cited an increase in allocation in 2018. 

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''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. In India, where the volume of wealth is rising the fastest globally, UHNWIs in the country 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 & Managing Director, Knight Frank India.

Knight Frank conducted the survey to map the investment sentiment of UHNWIs towards Private Equity as an asset class in 2019. Here are the Attitude survey results:

Q. On average, what proportion of your clients' investment portfolios is allocated to Private Equity?

Q. How do you expect your clients' allocation to Private Equity to change in 2019?

Q. How did your clients' allocation to Private Equity change in 2018?


Key Inferences of the Attitude Survey:

1. Asset allocation to Private Equity: Indian UHNWIs have a higher allocation towards private equity in their investment portfolio (4%) which is equivalent to allocation in gold.

2. Expected change in allocation to Private Equity in 2019: 46% of Indian UHNWIs are expected to increase their allocation (37% in 2018).

3. Globally, 31% UHNWIs are expected to increase their allocation (25% in 2018). In Asia, 26% UHNWIs are expected to increase their allocation (20% in 2018).

4.  With 46% UHNWIs from India citing to increase their exposure to Private Equity this year remains highest in Asia and fourth highest in globe.