Avendus Wealth Management's CEO on - Refining and Enhancing the Private Banking Model - Hubbis
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FEATURE ARTICLE Link to Article on website Avendus Wealth Management’s CEO on Refining and Enhancing the Private Banking Model Nitin Singh, Managing Director & CEO of India’s Avendus Wealth Management, took the reins of the business in February 2020, just before the world went into Covid-19 meltdown. Clearly, that was not the easiest time to become the CEO of any business, big or small, but he reports that his teams have pulled together admirably to help keep driving the business forward, maintaining and enhancing their focus on client-centricity, and further refining and building out the proposition. Avendus is today a prominent and diversified financial services group in India; founded more than two decades ago, and since 2015 invested in by US-based private equity giant KKR and another private equity firm. It has since then powered into being amongst the top five wealth management firms in India for its preferred HNW and UHNW clientele, and Nitin has his sight set on being amongst the top three in those segments. We ‘met’ again with Nitin earlier this year to hear his updates on how the group is forging its private banking model centred on the upper tier of HNW and UHNW investors and how he and colleagues are increasingly leveraging the firm’s extensive investment banking, lending and asset management capabilities to expand relationships and boost revenues through cross-fertilisation. On a personal level, he acknowledges that since he took the reins at the firm, the phase has been both an immensely challenging and also hugely rewarding in his career and his personal life, a phase that he says has inspired him as to the fortitude of the human spirit. GET IN TOUCH View Nitin Singh’s LinkedIn Profile Find out more about Avendus 1
FEATURE ARTICLE
Avendus Wealth intently on clients who have at least well as a strong asset management
Management (AWM) - the USD5 to USD10 million to invest, operation and a significant lender,
private banking arm of the larger right up to UHNWIs with USD30 providing clients with loans centred
Avendus Group, currently under million investible wealth, and then on structured credit, buyout
Nitin’s leadership, was launched all the way up. We also cater to finance, and Lombard lending for
in 2010, roughly a decade after family offices with upwards of the wealth segment.
the first business of the firm, USD100 million to invest.” In fact, he
“All these elements give us great
investment banking, was founded. reports that AWM has built a client
access to numerous business
AWM, in its first 10 years, reached base of ~ 1500 UHNW and UUHNW
owners and entrepreneurs across
critical mass and especially in the individuals, half of whom have more
India, especially in new industries
last two years has become the than USD100 million to invest.
where so much wealth creation
second largest business in the
He explains that the wealth has been happening,” he reports.
wider Avendus Group. And Nitin
management business is already “The IB focus is very much on
reports that the mission is now
comfortably within the top five growth segments such as digital
to scale up the client offering and
in India and that the mission is technology, consumer, healthcare,
further boost brand prominence
electric vehicles, warehousing and
to be amongst the Top 3 players in to become one of the top three
other new business spaces. In
their target segment. trusted advisors within the
asset management, we are also
one of the pioneers of the hedge
“In asset management, we are also one of fund business in India, and we
the pioneers of the hedge fund business in run the largest hedge fund in the
India, and we run the largest hedge fund in country today, as well as being
the country today, as well as being a major
a major player in the late-stage
private equity as well as structured
player in the late-stage private equity as well finance where we run dedicated
as structured finance where we run dedicated funds leveraging on Avendus’
funds leveraging on Avendus’ in-house in-house expertise and access to
expertise and access to exciting deals.” exciting deals.”
Avendus pulls together
A full-service wealth country in the HNWI and UHNWI
He also clarifies that Avendus
platform segments. He further notes
pulls all its businesses together in
“We are a full-service wealth that 2020 was a challenging yet
the “One Avendus” proposition
management platform, with rewarding year for the business.
to better serve its clients. “Across
products and advisory services “The last year was a reboot year
all our businesses, our key effort
across all asset classes, family for us and we used this time
is really to focus intently on
office services, and lending team to dig deeper into our entrepreneurs and take care of
capabilities; in short, we offer capabilities, assess gaps, and reset their entire lifecycle needs,” he ex-
everything that you expect out our business, keeping in mind plains. “It became really important
of a private bank,” Nitin reports. the evolving needs and future to us to look at a customer as one
He adds that AWM is part of the expectations of our clients.” franchise, to help deliver leads
Avendus Group that has enjoyed
internally from one business to
a major rise in prominence in
Leveraging the another. We have roughly deliv-
the last two decades, and that
powerful IB platform ered about 50 introductions to
is genuinely international in
He adds that aside from the private the investment banking business
perspective, with global private
banking operation, the Avendus over the course of the past year,
equity giant KKR as majority
Group has a major investment and a similar number of referrals
shareholder since 2015.
banking presence - in fact, Nitin were received from them. As a
“We do not compete in the mass reports the firm is today the result, clients increasingly see us
affluent segment, instead focusing market leaders in IB in India – as in a whole new light.”
2
FEATURE ARTICLE
markets in the past several years across those areas. “We have
and last year our market leading really made progress in these
alternatives portfolio continued to segments and are witnessing
scale new heights. In line with our increased customer engagement
goal to continue to be the leader around these offerings.”
in the alternatives space, we
extensively curated and brought AWM also launched their new
to the market several high quality growth lever of the wealth lending
and innovative deals in the private business which has produced
space, leading to the team raising vigorous growth. “Our new
somewhere near USD500 million, Lending proposition has seen
despite the pandemic and far an immediate uptake by clients
more than in the five previous as we help them meet their
years. We have a healthy pipeline
liquidity needs by crafting unique
NITIN SINGH and are well on our way to meet
customised solutions, given our
Avendus the USD1 billion number.”
deep understanding in the listed
Another area where AWM has and unlisted space. In a short span,
AWM – punching its full expanded its prominence is the we have already disbursed several
weight firm’s investment solutions and loans to our key wealth customers.”
Nitin expands on the efforts he and
his colleagues have made since he “The clients want and demand value from
arrived. “We knew from the outset us; they expect good advice, they might be
that although wealth management
entrepreneurs who have cashed out tens of
was more than 10 years old at
Avendus, it had not really punched
millions from their start-ups, and they expect
its full weight,” he explains. “It insights, a highly sophisticated approach,
was still a niche business and had and they need to see that we offer genuine
clearly not utilised the strength of value-add.”
brand Avendus or of KKR. I came in
to power up the business, and the advisory. Advisory in India has Nitin also notes that in a business
mission was to forge ever-closer only been around for the last two that is often relationship driven,
and stronger ties as a trusted years and is rapidly evolving amid Covid-19 largely put a halt to in
advisor for the upper HNW and changing regulations and customer person meetings. “Despite the
UHNW segments, really focusing preferences. “We managed to fully challenging times and near zero
on delivering curated and quality revamp & clean up our advisory face to face time with our clients,
solutions for them.” offering during the year as we we were able to add 450 families
moved to the Non-Discretionary as our clients since 2020, while
He reports that the team has Portfolio management solutions our existing families also saw their
focused on several growth (NDPMS) model. We have 45% of portfolios grow with us.”
levers over the last year to lay a our AUM in this model, growing
strong foundation for the times He shares how client engagement
at about 150% Y-o-Y. We also
ahead. “When I arrived, the first has been at the heart of their
reoriented our public market
mission really was to clean up endeavours, especially during
offering, focussing on best in class
shop, seeing the crisis as an Covid -19. “Effective, consistent
differentiated products and high-
opportunity to really look at our communication is the bedrock of
quality managers. We are seeing
value proposition, what were we the advisor client relationship and
good initial traction.”
delivering, and what changes we with this strong belief we handheld
had to make,” he elaborates. Another sphere of development every client through the volatility
was to scale up the family office, of last year. We also organised
“We have built a deep expertise and the direct equity capabilities, various knowledge webinars
in private assets and private with senior-level appointments on relevant topics with leading
3
FEATURE ARTICLE
industry and our in-house subject The result, he reports, is that the
matter experts.” RMs and advisors really need to up
their game. “The firm and our RMs
Powering through the together need to deliver the best
gears ideas, concepts, superior products,
Nitin reports that the wealth approaches and outcomes,” he
management industry is one of the reports. “The RMs need to be multi-
few industries which had not only dimensional in approach across
emerged through the pandemic asset classes and across public
relatively unscathed, but that and private markets. They need
has also seized the opportunity to be imaginative and innovative.
to grow, and in the case of AWM, In short, they need genuine talent
exponentially, he says. and expertise to succeed with our
increasingly sophisticated and
“We are seeing several trends discerning clientele.”
emerge,” Nitin explains. “One
is the rapid financialisation of
Elevating the offering
savings, and another is the massive
And as a result, Nitin has since
adoption of digital. At the same
arrival been helping drive the
time, there has been a dramatic
Avendus Wealth Management
increase in interest, amongst our
proposition to a different level,
clients, in private assets, especially
nurturing team members and
digital assets. Moreover, risk
refining the product and advisory
capacity has risen markedly since
suite to suit the market’s evolution
the worst moments of 2020 and
and stay ahead of the pack.
continues to rise, including a shift
within fixed income to higher “The smaller, niche or boutique
yield assets, and from debt to category of players are falling by
equity, and within equity to greater the wayside, as clients are drawn
diversification of holdings. It all to providers that can offer the
comes together as part of the drive combination of the best product,
to enhance asset allocation and platform, processes and details,”
thereby returns for investors and he reports. “To offer those
activity levels for AWM.” qualities and services at optimal
levels, you need to be a significant
Clients – increasingly and multi-faceted player across
demanding, and rightly multiple disciplines. And that is
so what Avendus is all about.”
Another fascinating development
has been the rapid rise in both the Working ever closer
sophistication and expectation of with the bespoke client
the client base, from their wealth base
management providers. “The Nitin reports that the firm’s wealth
clients want and demand value management client base today
from us; they expect good advice, comprises of ~ 1500 families, with
they might be entrepreneurs roughly half of those controlling
who have cashed out tens of wealth of more than USD100
millions from their start-ups, and million each. “UHNI/HNI families
they expect insights, a highly all have different needs and
sophisticated approach, and they circumstances and both family
need to see that we offer genuine aspirations, as well as business
value-add.” goals need to be taken care of
4
FEATURE ARTICLE
while advising them”. “Amongst He notes that as a whole array of
these clients, we have seen that business and operational costs
people have been increasingly had been pared back in many of
focusing on the quality of life over these companies since Covid-19
the course of the last six to 12 impacted the planet, they have
months, because the affluent elite been generating surplus cash,
have ambitions that are not limited which is now going into both this
by geography, so we have also expansionary, forward-focused
seen a significant rise in demand auto self-disruption, and also
for alternative residency options,” in the form of remuneration to
he reports. “Secondly, people have owners that is often then recycled
focused on how they can manage into market investments across a
their international businesses wide array of assets.
from different locations. And
at the same time, and linked to Applying both expertise
these two trends, a third trend has and experience
been towards greater offshore Nitin joined Avendus in February,
asset diversification, which is a shortly before the world was
good move for them given the turned upside down by the
performance of global markets pandemic. He had enjoyed a 20-
in the past year-plus since the year career beforehand in wealth
unfavourable conditions of 2020.” management, many of those
years with Standard Chartered
Auto self-disruption – a and HSBC Private Bank in London
fascinating trend and in India. His last role before
The fourth key trend, he reports, taking the helm at Avendus was
is the self-induced disruption by as Managing Director & Head of
businesses in traditional segments the India Wealth Management
of the economy in order to protect business at Standard Chartered
their business models. Bank. Prior to that, he was global
head of fund selection for HSBC
“We hear more and more from
Private Bank, based in historic St.
traditional industries and owners
James, London, during which time
that want to invest in enterprises
he was almost weekly travelling to
that tie in with their core business,
Switzerland as part of the job.
thereby creating an ecosystem
that effectively disrupts them He reports that he had enjoyed
before other upstart disruptors both a challenging but also a
do that from outside. This is fascinating and rewarding time
done both through investing in since joining Avendus. “It has
funds that focus on consumer been inspiring in many ways,
sectors and by making strategic leveraging my experience and
investments/co-investments in skills in this new role, rising to the
select firm,” he says. “It is a smart challenges with my team, driving
self-protection mechanism that through changes that have helped
we are seeing play out, and I can us really reap the fruits of these
confirm this phenomenon of efforts,” he says. “It has been far
embracing imaginative new ways from easy, but the results are
to ensure growth and potential of really showing through.”
existing, traditional enterprises,
for example, from many He shares proudly that the efforts
discussions with such owners.” put in by the team received
5
FEATURE ARTICLE
validation from the industry and technology, which he observes is
the peers; the firm was adjudged central to the future proposition,
the Best Independent Wealth and to the firm’s own auto-
Manager – India Domestic 2020 disruption to protect against
by Asian Private Banker and future competition.
was also ranked amongst the
“Technology is definitely set to
Top 2 in most categories in the
be the next big disruption in this
Euromoney Private Banking
industry, with more and more
Survey 2021. Most recently it was
tech driven processes & outputs
Highly Commended as the Best
coming into play. In the coming
Private Bank for UHNWIs at The
months, we launch a cutting-edge
Asset Triple A Private Capital
technology and operations stack
Awards 2021. “These accolades
that will really elevate the client
reflect our commitment, focus and
experience, make user journeys
perseverance over the years to
seamless and truly improve our
build a strong wealth platform for
RM’s ability to serve clients,” he
delivering superior outcomes.”
reports, enthusiastically.
Boosting the talent pool, “This will cover everything from
driving AUM growth back-office operations to digital
Nitin reports that the last piece onboarding, performance and
of the jigsaw has been to boost portfolio analytics, to how we
the talent pool, organically and look at the client interface, how
through new hires. “Upskilling we warehouse our data, build
my sales, advisory and product management dashboards, and
talent has resulted in delivery create a digital interface to external
of sustainable AU and better stakeholders during the year. In
revenue, which then translates to short, we are ourselves disrupting,
more money for our teams and boosting capabilities and enhancing
greater satisfaction and longevity,” expertise from a digital perspective
he says. “Since 2020, our team to really take both customer
of 40 seasoned RMs is delivering experience as well as sales
best in class market productivity in productivity to a different level.”
terms of AUM and revenue.
He further reports, “We now also
The result, he reports, is that work with the UK based firm
he believes AWM is the fastest Bridgeweave, which is helping
growing wealth management us use artificial intelligence and
firm in India, with AUM surging machine learning to boost our
more than 60% in the year to the investment knowledge and curate
equivalent of more than USD5 opportunities with Big Data, turbo-
billion, and revenues leaping up charging our expertise.”
2.5 times. Nitin continues to be on
In an expansionary move, Nitin
the lookout for high quality and
has his eyes set on the offshore
experienced talent to scale the
markets as well. “We are building
platform and make it India’s best.
an offshore platform to work with
family offices, UHNWIS, multi-
Challenging the status family offices in the US, Asia and
quo from within Middle East,” he reports. “We will
He draws the conversation be delivering digital access to
towards a close by focusing on private equity funds and deals
6FEATURE ARTICLE
in India. It is very exciting. And of the Avendus franchise. It’s going level, it has been a blessing to
alongside that effort, we will be to be only upwards and onwards spend more time with the family
offering more new fund solutions from here.” since lockdown. My son is almost
in the next six months. We will nine, and although maybe he sees
also use this platform to give our The spirit to endure it differently, from my perspective,
Indian customers international it has been incredibly rewarding to
His parting comment is somewhat
diversification, which is in great spend so much time with him. And
more personal. “This has been
demand right now.” from a broader family and social
an immensely challenging time
perspective, we have all faced
Lastly, he shares “The Wealth for the world, for India and for and overcome our own struggles
Management space in India is at people everywhere,” he says. “For – including sudden deaths in the
the cusp of change and as a firm me, it has also come at a time of family - and our collective strength
we have put in all the ingredients great challenge and excitement and mutual support have inspired
of change together – product, in my career, taking the reins of me as to the true resilience of the
people, technology and the might Avendus Wealth. On a personal human spirit.”
7You can also read
