Consumer Associates units its sights on tier-2 cities amid wealth surge, plans to broaden footprint in 5-6 cities in 3 years

Consumer Associates, the nation’s largest multi-family workplace supplier, is on an enlargement spree, seeking to ramp up its geographical footprint to 14-15 cities within the subsequent three years, from its present presence in 9 cities, its co-founder Himanshu Kohli has mentioned.

The Gurugram-headquartered wealth administration agency, which has liquid belongings below recommendation of about $ 5.3 billion, would pursue its subsequent leg of enlargement within the Tier-2 cities, the place the agency sees wealth administration alternatives given the large wealth created in these cities lately.

Almost 60 per cent of the agency’s revenues come from personal wealth administration verticals , that are probably the most important of the seven verticals that it operates in, in line with Kohli.

“We’re already current within the main metros. The following enlargement for us can be in Tier-2 cities, which have a very good quantity of demand, and hardly any expertise. That’s the place we see alternative as individuals with lots of wealth will want native individuals to assist them handle their wealth in an organised method. We’ve got studied the brand new Tier-2 markets we wish to enter,” Kohli informed businessline right here. Within the present monetary 12 months, Consumer Associates has arrange workplaces in three new geographies — Ahmedabad, Kochi and Patna.

Kohli mentioned the corporate, which began its journey in 2002, plans so as to add one other 100 professionals within the subsequent three years, taking its total headcount to 300. This agency at the moment has about 1,100 relationships (together with 400 household workplaces) with a consumer base of 4,000 to five,000 HNIs and UHNIs, apart from Household Places of work.

“Our dream is to turn into probably the most admired personal wealth administration platform (wealthy man’s financial institution) within the nation,” Kohli mentioned.

There may be increasingly more wealth creation throughout the nation, he mentioned, noting that each half-hour a Excessive Networth Particular person (HNI) is born in India. Every day, India produces an Extremely Excessive Networth Particular person (UHNI) and a billionaire each month.

“Wealth administration has right this moment turn into a essential want for any rich household or any particular person,” Kohli added.

Consumer Associates has additionally arrange a Class II Alternate Funding Fund (AIF) for which SEBI approval has been obtained. “We’ve got within the final eight years constructed a monitor document. Now, we’re geared to take the AIF construction to a broader universe of purchasers comparable to HNI and UHNi, and never limit them to multi-family workplaces. We want to mobilise ₹500 crore for the Cat-II fund”, he mentioned.

On the most important traits sweeping the wealth administration trade in India, Kohli mentioned there are 4 main traits — financialisation of financial savings; equities turning into a mainstream asset class; lots of conventional companies unlocking worth in present ones to spend money on new age companies, and Indians turning into world Buyers. Many Indians are investing overseas within the alternate markets, he mentioned. 

Consumer Associates can be analyzing the potential of establishing a presence in GIFT Metropolis to cater to the wants of a number of Indian household workplaces, who’re eager to function overseas’s sole worldwide monetary providers centre. Having a presence in GIFT Metropolis will assist the UHNIs and their household workplaces in availing a facility of bigger outward and inward remittances in international foreign money of their selection.