CERVIN in the news

Part CFO, Part Therapist, Part Fixer: All in a Day for a Family-Office Manager

A Gurgaon-based family office adviser settled into his office as the Rapid Metro cut past the window. A client walked in, an industrialist he had been working with for months. They went through the usual agenda: a deal structure, some financial details―the kind of conversation that fills a Tuesday afternoon.

India Built a Start-Up Ecosystem on Foreign Capital, Family Offices May Now Have to Keep it Rolling

In 2023, Shreshth Mishra and his team at Simple Energy were focused on the next phase of growth. The Bengaluru-based electric two-wheeler start-up wanted to expand production, enter new markets and continue developing new products.

Cervin’s Munish Randev On How Indian Family Offices Have Evolved To Pound The Startup Cap Table

The evolution story of Indian family offices as an investor class is quite interesting in the startup context. Despite their decades long existence, which can be traced back to the times when India was still under the Zamindari system, it was not until 2005 that they gained prominence as investors.

Redefining Wealth Management in India: Munish Randev’s Vision for the Cervin Family Office

Munish Randev, Founder and CEO of Mumbai-based Cervin Family Office, embodies the evolution of wealth management in India, blending a deep respect for tradition with a vision for modern advisory excellence. Since launching Cervin in mid-2020, amidst the global upheaval of the pandemic, Randev and his colleagues have built a firm that champions transparency, trust, and tailored solutions for family-owned businesses.

Cracking the Indian Wealth Code: Advisory, Behaviour and the Long Game

India’s wealth creation story is well documented. From thriving family businesses to surging equity markets, the country has emerged as one of the fastest-growing wealth hubs globally. Yet, while assets under management continue to rise, the evolution of advisory models has lagged behind.

Decoding Family Offices Landscape In India

In the US, Europe or other countries, one may find family offices that have been around for as long as more than 70 years. However, in India, the term family office is quite nascent in comparison to the West.

How Sebi is all set to make AIFs more investor-friendly

Winds of change are set to sweep the investment scenario in the country. The Securities and Exchange Board of India (Sebi) has proposed to curb mis-selling of alternative investment funds (AIFs) and make them more investment friendly. The market regulator released three consultation papers to this effect last week.

What do global REITs offer… And, what they certainly do not

Buying real estate overseas is not new to rich Indian investors. But buying physical real estate can be cumbersome. Apart from a physical recce of available properties, it entails managing the documentation, specific licenses and repairs — a taxing process. Nevertheless, if you have financial interests overseas, investing in real estate may hold long- term appeal. One way to get exposure to overseas real estate without having to buy physical property is investment in REITs.

REITs, or Real Estate Investment Trusts, are special companies set up to own and manage real estate assets. REITs do not invest in just one property. Think of REITS like a mutual fund. A REIT invests in a portfolio of properties across sectors.

Family Offices: Preserving Wealth

Munish Randev, founder and CEO of CERVIN Family Office, says a family with ₹100 crore and more financial capital needs family office. Industry players say a single-family office is needed if liquid wealth is more than ₹2,000 crore.

Team quality and continuity also matter. For example, a promoter set up a single family office where five out of six professionals had only sales experience. “The promoter had no idea that corporate bankers and mutual fund distributors are not experienced in wealth management. Hands-on investing experience is most important in an internal investment team,” says Randev. If a single-family office doesn’t offer meaningful work or intellectual stimulation, the professionals may move on. Such things can be avoided by opting for a multi-family office which can manage both investment and non-investment needs.

The CIO’s job is not easy. Sometimes he needs to raise the red flag to the business owner’s investment preferences. “We can’t be yes men. For example, a lot of clients asked us to invest in cryptos or other glamorous products because their friends and acquaintances were doing so. We explained the risks but not all agreed,” says Randev of CERVIN Family Office.

Family offices keep a check on spending habits too. “Most families get astonished when they take stock of their expenses. Sometimes we even have to highlight why they shouldn’t buy a ₹1-2 crore car every year or go on a lavish vacation of ₹2 crore or buy diamond on every other occasion. If there are risky patterns, we highlight them. It’s up to them to follow,” says Randev.

Why more family offices in India are investing in start-ups

Munish Randev, Founder & CEO of Cervin Family Office and Advisors, said it was very natural for Indian family offices to start allocating to the start-up space. The key reason is the asset class has grown rapidly in India over the last 10 years and hence provides numerous opportunities.

The momentum of newer founders and start-ups has ensured that there is enough capital entering the industry which has provided the necessary boost, thereby attracting attention from the growing list of family offices, Randev said.

Indian start-ups achieving a fairy tale valuation growth, the increasing buzz around unicorns and stories of multiples of capital made from the industry has attracted the nextgen from family offices who are more comfortable in taking risks.

At the same time, Randev also pointed out that some family offices have just dived headlong into the start-up ecosystem purely due to social/peer pressures (within a family office) or just ‘Fear of Missing Out’ (FOMO).

Published in The Hindu BusinessLine, 24 July, 2022