Goldfib Key takeaways
- Most family offices underinvest in research process, not in people. A rhythm and templates fix more than a hire does.
- Keep judgement in-house. Buy or automate volume.
- Write the investment policy statement first. Without it, research has no question to answer.
- Use the four-stage maturity path to decide what to build next.
Indian family offices have grown rapidly in number and sophistication over the past decade. Many began as a promoter’s treasury desk parking surplus from the operating business. Today many run direct equity books, invest in private companies, allocate to AIFs and PMS managers, and hold real assets.
The research function rarely keeps up. Typically one or two capable people try to cover listed equity, unlisted deals, fund selection and monitoring at the same time. This guide sets out a better design.
Start with the question: the investment policy
Research without a question just produces information. A written investment policy statement (IPS) gives the research function its question. It sets objectives, return targets, risk limits, allocation ranges, liquidity needs and, crucially, who decides what.
Keep judgement in-house, buy or automate volume
The core design principle: the family must own decisions and theses, but not necessarily the hours.
The operating rhythm
A small office with a good rhythm usually beats a bigger office without one. Write the cadence down:
The maturity path
Moving from Stage 1 to Stage 2 costs almost nothing. It needs an investment memo template and a committee calendar. Stage 3 is where research automation and an outsourced or student-led desk earn their keep.
Direct equity vs managers: a research-load question
The biggest driver of research load is how much capital the family manages directly. Allocating to PMS and AIF managers shifts the work from company research to manager research. That work is different, but it is not lighter. We compare the routes in PMS vs AIF vs direct equity.
| Route | Research load | Main research task |
|---|---|---|
| Direct listed equity | High, ongoing | Company theses, monitoring, valuation |
| PMS / AIF managers | Medium, periodic | Manager diligence, fee analysis, style drift checks |
| Unlisted / pre-IPO | High, front-loaded | Deal diligence, valuation, exit path. See pre-IPO diligence |
What to do this quarter
- Write or refresh the IPS, including who decides what.
- Adopt one memo template and use it for every new decision.
- Automate alerts for every holding.
- Pick one area of volume work, such as initiations or monitoring, and get outside capacity for it on a pilot basis.
- Run the desk cost calculator before deciding to hire.
Frequently asked questions
What does a family office research team do?
It screens for opportunities, researches listed and unlisted investments, diligences fund managers and deals, monitors existing holdings, and prepares investment memos for the family's investment committee. In smaller offices one or two people may cover all of this with outside help.
Should a family office build an in-house research team?
Usually only partly. A small in-house team, sometimes one person, should own the investment policy, theses and decisions. Volume work such as initiations, monitoring, screening and data is often cheaper and more flexible when outsourced or automated, especially below a few hundred crore of directly managed equity.
How many people does a family office research team need?
It depends on how much capital is managed directly rather than through funds. An office that mainly allocates to managers may need one investment lead plus outside support. An office running a direct equity book of dozens of positions typically needs more analysis capacity, which can come from hires, outsourced desks or automation.
What is an investment policy statement for a family office?
It is a written document setting out the family's objectives, return targets, risk limits, asset allocation ranges, liquidity needs, permitted investments and decision rights. It gives the research function a defined question to answer and the investment committee a standard to judge proposals against.