In conversation with Sraboni Haralaka, Co-Founder and Executive Director at Wodehouse Capital Advisors

We're currently focusing on specific themes and sectors. With markets rebounding from the lows of 2022-23, we're particularly keen on dividend-yielding themes, articulates Sraboni Haralaka, Co-Founder and Executive Director at Wodehouse Capital Advisors.

What insights can you provide regarding the investment management outlook for 2025?

India's economy is doing well, thanks to ongoing reforms that are making it easier to do business. With a young and growing population and favourable geopolitical conditions, India is becoming a hub for manufacturing. The country also has maturing capital markets, opening up new investment opportunities. However, navigating India's diverse landscape, which includes challenges like rural poverty and infrastructure gaps, can be complex. Despite these challenges, India remains an attractive investment destination with strong growth potential.

At Wodehouse Capital, we focus on long-term investments using fundamental analysis. We tailor our approach to individual risk levels and remain cautious of market volatility and other factors like market saturation and leverage levels.

In your opinion, what is the significance of smart diversification, and could you elaborate on potential alternative investment strategies?

We believe that building portfolios around specific themes is becoming more popular, even though traditional investment strategies based on growth versus value, large versus small companies, and industry sectors are still relevant. We suggest taking a more flexible approach to investing in the short term, using both indexing and strategies that aim to outperform the market, while being selective.

In addition, the private equity market slowed down in 2023 due to challenges like economic uncertainties and higher financing costs. This affected fundraising, deal activity, and performance, but not all strategies or managers were impacted in the same way.

At Wodehouse Capital, we're currently focusing on specific themes and sectors. With markets rebounding from the lows of 2022-23, we're particularly keen on dividend-yielding themes, which have remained appealing since the start of this calendar year.

Considering alternative investments is a smart way to diversify your portfolio. These investments often don't move in sync with traditional assets like stocks and bonds, which can help reduce overall risk.

How do you anticipate forthcoming M&A deals will impact the business landscape in India?

In 2023, many industries faced challenges, leading to a slow M&A market. Deals were hindered by differences in what buyers were willing to pay and what sellers wanted. Issues in due diligence added to the complications, along with high interest rates and economic uncertainties.

Key Factors Affecting M&A in 2024:

· More competition from capital markets may encourage sellers to consider IPOs instead of selling their companies.

· Global elections and geopolitical tensions could disrupt trade agreements and increase financing costs.

· Changes in regulations, like competition laws, may delay deal processes.

· Economic factors such as inflation and financing costs could make valuations and deals more difficult.

· Industry-specific challenges, like the IT sector's reliance on client economies, affect deal dynamics.

· High valuations in India are prompting creative solutions like stock acquisitions and diversification of capital.

We expect M&A activities in India to increase in 2024, driven by continued reliance on private equity investments. Both corporate and institutional investors are actively searching for opportunities in the Indian market.

How are family offices garnering increased attention, and how do they contribute to wealth preservation?

Managing investment risks and meeting long-term return expectations are two main goals of a family office. However, predicting both risks and returns has become more difficult due to increased volatility and complexity in the market. Therefore, having a comprehensive understanding of market trends is essential for family offices to make informed decisions.

We are a Multi-Family Office dedicated to helping clients preserve and grow their wealth for future generations. Our first step is to fully understand how a family's wealth is structured, as knowing its value is crucial for protecting it and planning for the future.

How do lavish spending habits impact the ability of individuals to effectively grow and maintain their wealth over time?

We believe in encouraging money habits that feel good and are beneficial for you. However, if a habit feels good but isn't good for you, it's best to avoid it.

Our clients' feedback has inspired us to create a special strategy called the W.I.N. fund, designed specifically for our Family Office clients. This approach aims to provide regular payouts while also managing market risks and protecting capital.