Mumbai-based multi-family office Waterfield Advisors will raise about $100 million fund of funds from Indian family offices, which will back successful homegrown private equity and venture capital funds.
A fund of funds is a pooled investment to infuse a collective amount in the startups/businesses. While fund of funds are major investors in alternative investment funds such as PE, VC, credit and infrastructure globally, but there are hardly such structures available currently for high net-worth individuals and family offices in India.
Founded in 2011 by Soumya Rajan and Sanjay Teli, Waterfield Advisors helps its clients plan, structure, and manage their family wealth, exclusively on their behalf as their dedicated family office. As an investment advisory firm, the company has an open architecture platform and works with product manufacturers across AMCs, PMS, and AIF providers.
“Family offices typically tend to support one fund or two funds and they make smaller allocations. And because they make smaller allocations they are not viewed as an institutional player. So, they don’t get the rights of institutional participants such as co-investment or better unit economics, which foreign institutional investors ask for,” founder and CEO of Waterfield Advisors Soumya Rajan told the media.
Also, given the smaller cheque sizes of most family offices, many prominent domestic funds may not necessarily raise money from them. Pooling capital into a fund of funds thus allows better access to such fund managers for these family offices.
The company expects to raise the first tranche of funds by June this year, followed by a final close by September end. A first close allows a fund to start deploying the capital raised so far, while continuing its marketing efforts to draw in more capital.