Single family office sees liquidity, value boosting India bets
Single-family office GreenBear Group is optimistic about long-term investments in India, believing the country to be on the verge of significant growth and economic transformation.
“I see opportunities across asset classes, including public markets, credit, infrastructure, and secondary markets in private equity and venture capital,” said Vishnu Amble, director and investment committee member at GreenBear Group.
Established in 2006, GreenBear Group is the single-family investment office of a South Asian semiconductor industry entrepreneur and is focused on making private market allocations primarily via fund managers.
It is based in Miami and Singapore.
AMPLE OPPORTUNITIES
India is set to become the world's third-largest economy by fiscal 2030-31, according to a recent note by S&P Global.
Greenbear Group
“This creates liquidity and value, attracting foreign investors across public and private markets, while a rapidly growing domestic capital base adds further liquidity. It’s an exciting time to be in India, as we witness a long journey through market cycles,” Amble observed.
According to the family office executive, the private sector is driving value, at times in collaboration with the public sector.
"Private credit operators are emerging in India, and we’re seeing more sophisticated fund managers acknowledging the need for liquidity," he said.
Indian entrepreneurs are moving forward the growth agenda, according to GreenBear, and the adoption of technology, rising consumer and enterprise spending, and the maturity of fund managers are all on its radar.
The firm sees these factors as strengthening and maturing the market for investments.
According to data provider Preqin, India's private capital assets under management, over the past decade and a half, more than tripled to a record $124.3 billion at the end of 2023.
Amble added that India’s evolving legal system has provided additional confidence to investors, noting that progress made over the last two decades in corporate governance and with the court system has been significant.
"This momentum in the private sector is going to persist, regardless of politics," he said.
AREAS OF CAUTION
Amble also emphasised the value of lessons learned over the past 25 years investing in the country, which saw economic and political reforms and the ups and downs associated with both.
"Partnering with like-minded, long-term LPs who understand the Indian market and aren’t likely to pull back at the first sign of risk is critical," Amble said.
"We’ve seen challenges in regions like China, where local entities face balance sheet issues. India has its own risks, but long-term capital is key, rather than chasing short term gains," Amble added.
The Indian market, in particular sectors such as private equity, remain in their developmental phases, Amble said, and with significant participation from retail and high-net-worth individuals.
While this growing retail presence offers opportunities, it also brings volatility.
“It’s important for family offices to be mindful of the retail-heavy environment in India,” he cautioned, adding that the tendency for retail investors to withdraw funding quickly during periods of uncertainty can pose additional risks for institutional investors.
"It’s about having the right balance between local and institutional investors to maintain stability in the long term," he said.
RISKS AND REWARDS
In spite of notably high valuations, particularly in the tech and startup sectors, family offices with a deep understanding of local market dynamics can still find value, said Amble.
“If I kept saying valuations are always high, I wouldn’t have done anything,” he said.
"Good investors know how to navigate through these challenges and find avenues for value creation. Conviction in the macro fundamentals and an eye for micro opportunities are crucial."
According to KPMG’s 2023 India Venture Capital Report, valuations of Indian startups surged by nearly 20% over the previous year, driven by competition among investors seeking high-growth assets.
Amble stressed that this type of environment calls for experienced investors who can balance risk with long-term potential.
“Concerns about governance and DPI remain, but they’re improving," he said, referring to a measure of private equity performance called distributions to paid-in capital, or cash that a PE fund has returned to investors as a share of capital taken in.
"Investors need to be ready to commit to the market despite these challenges. Issues exist everywhere, whether it’s India or the US. But for a diversified portfolio, India needs to be part of the strategy,” Amble said.
The investor also underscored the importance of taking a long-term view when investing in India.
“India is a long-term play. You can’t just dip in and out based on market fluctuations,” he said.