IIFL Private Wealth was formed when a group of senior professionals with significant Private Banking experience joined hands with IIFL Holdings Ltd (formerly India Infoline Ltd) and started operations in April 2008. As it happened, IIFL Private Wealth formally started its business the year the Lehmann Brothers crashed and the Madoff crisis was in full force. A more ominous kick-off couldn’t have been fathomed.

Within just seven years, the firm has a magnificent turnaround story to showcase. IIFL Private Wealth is the investment and financial advisor to more than 8,600 influential HNI and Ultra HNI families in India and abroad, aggregating more than USD12.00bn of assets under management, advice and distribution. During this entrepreneurial journey, IIFL Private Wealth has acquired two firms, added over 400 employees, and spread to 22 offices globally, to become India’s largest private wealth management com¬pany. It also remains ambitious and relentlessly focused on growth.

FINANCIAL PERFORMANCE

IIFL Private Wealth is regarded by its peers as a firm that drives industry innovation. According to Managing Director & CEO, Karan Bhagat, “A deep desire to veer away from the herd mentality helped it focus and drive away the core issues that plagued most wealth management firms at the time its inception.” He explains, “Our winning proposition is the enduring relationships that we have built with clients through a strong alignment of interest - by elim¬inating distribution incentives - and through employee ownership. Employees own 24 per cent of the com¬pany.” Additionally, its fixed fee structure as opposed to a commission-based practice (currently prevailing in the wealth management space in India) also translates into considerable cost savings for its clients.

An array of best practice measures has helped IIFL Private Wealth create a 360 degree, all-encompassing advisory service and ensure that its interactions with clients are relationship-driven and honed by trust. This, in turn, has earned it strong client referrals that add to its fantastic growth story, year on year.

INDIA’S WEALTH MANAGEMENT LANDSCAPE

The seven years of existence has also happily coincided with a metamorphosis in India’s wealth management landscape.  An improving economic outlook, better industrial output and a growing number of Indian entrepreneurs who are diluting stake in their business are just some of the reasons why wealth management in India is poised to grow exponentially. A recent report from Capgemini on the Indian Wealth Management industry says the HNI growth Asia-Pacific Region has been propelled by India and China who account for 10 % of global HNI wealth and account for increasing USD3.2 trn of new wealth since 2006. Furthermore, they also report that the Indian wealth corpus will double over the next five years.

THE BUSINESS STRATEGIES WOVEN AROUND THIS LANDSCAPE

Client-centricity is one of IIFL Private Wealth’s core value systems. And the focus of the firm has been on excellent client servicing enhanced by the power of technologi¬cal initiatives. It strives to launch first in class innova¬tive products centred around client needs and interestingly enough, echoing the current socio economic milieu.  For instance, the NDA Fund was incepted post the new NDA Government coming to power. Again, IIFL Private Wealth has recently introduced a Start-Up fund of funds, under the AIF category II, to encourage innovations by young entrepreneurs.

Managing Partner and Business head of South India, Vinay Ahuja avers, “Our journey has revealed that wealth management comprises far more than just traditional asset allocations. At IIFL Private Wealth, we have woven our proposition around each client with a comprehensive pattern of wealth struc¬turing, wealth management and wealth administration services. Besides, we emphasize the importance of client education and awareness through our array of client events and conclaves.”

Broadly, the cornerstones of the firm’s premise are:

Wealth Management

This involves preparation of an invest¬ment mandate, and establishing objectives and strategies in accordance with the client risk appetite, rate of return, income/liquidity requirements, asset allocation and time horizon. Once the port¬folio has been made, this is followed by seamless execution, review and periodic monitoring of the clients’ investments to meet or exceed their objectives.

Wealth Administration

This includes a vast array of intricate financial planning and management tools, largely aided by technology. There are two key aspects of wealth administration. Investment Reporting, involves a consoli¬dated performance reporting on all client assets and investments, including those not invested with IIFL Private Wealth. The Asset Register encapsulates the aggregating of all client investments including non-financial assets such as real estate, promoter holdings, personal assets etc.

Wealth Structuring

This consists of organizing and struc¬turing business and personal assets, protection strategy, long term business re-structuring, tax efficiency, bespoke solutions for domestic and international clients and family governance issues. Asset protection and ring fencing of hold¬ings within the framework of global legal and tax framework forms a significant proportion of wealth structuring.

TECHNOLOGY & WEALTH MANAGEMENT

Technology has emerged as a key differentiator in the wealth management industry. With wealth creation happening at a younger age and average HNI age decreasing, a company which can adapt to the technological changes faster will emerge as a winner. Explains Yatin Shah, Co-founder & Executive Director,  “We have been at the forefront of providing new technology solutions to our clients,  unravelling our digital platforms - an enhanced website: www.iiflw.com, as well as an App for Android and Apple platforms. As a true reflection of a responsive interface, this updated site allows for a superior user experience across multiple platforms, browsers and devices. The website’s new dashboard showcases new product launches, helps access world class research and analysis, delves deep into portfolio across asset classes, to see product level performances and also lets the user browse through the firm’s maiden coffee table book covering insights from business leaders of repute. The launch of Caliber, an intranet software with a single sign on (SSO) feature has also made our internal processes extremely swift.

These efforts have been supplemented by the launch of the IIFL Market and IIFL Research App that boosts the advisory services with live stock prices, research from institutional equities, new stock ideas, strategy notes, in-depth data and analysis of market trends.

It’s little wonder then that our website and App have already won awards of international repute.

LOOKING AHEAD
 
When it comes to garnering trust, The Edelman Trust Barometer 2015 found – unsurprisingly – that financial services and banking continue to be the least trusted sectors in the work industry. However, given its holistic approach, IIFL Private Wealth’s clients and people have had the confidence to understand that the firm is here for the longest term. And this realisation alone has led to astounding revenues and profits.

IIFL Private Wealth’s vision going for¬ward is rather unique. Given that the HNI base in India is set to grow at an amazing pace – including Tier 2 cities -- nimble firms like IIFL Private Wealth have a tre-mendous opportunity to grow and handle more investments. The scope looks even bigger with most MNC behemoths struggling to adapt to changing Indian needs.

Co-Founder and Executive Director Amit Shah avers, "The firm feels a great amount of pride due to its stunning success across financial hubs around the globe. As a global brand too, IIFL Pri¬vate Wealth’s aims include collaborating with global leaders on their India-centric investments, being the first choice for India focused Institutional Investors, as well as the preferred Service Provider for the Indian Diaspora residing outside India."

With a total of 40 awards and counting, and several exciting growth plans on the cards, expect the IIFL Private Wealth story to enthrall, surprise and fascinate for the years to come.