3. Abhijit Joshi is the Founding Partner ofVeritas Legal.
He was the senior partner and chief executive officer (CEO) atAZB & Partners until November 2104.
He has been involved in some of the major landmark deals, such as the Rs 5,150 croreTech
Mahindra - Satyam Computer Services merger, Usd 2.6 billionTata -Docomo transaction among
many others
Abhijit joshi of azb & partners discusses the emergence of family wealth in India over the last
decade, and outlines the struggles that patriarchs and the next generation experience with wealth
transfer.
The unwillingness of most patriarchs to lose any control over their wealth, and also a lack of interest
from an increasing number of the next generation to take over the family business, represent two of
the major struggles that wealthy families in India face, says Abhijit Joshi in an interview.
Introduction
4. From the perspective of these patriarchs, they have been building their businesses
for a long time, accumulating their wealth along the way.
Yet as much as they don’t want to cede direct control of their money overnight,
Joshi explains that they also realise the importance of being able to set up a
structure that best protects their assets and ensures the longevity of them.
As a result, it is the job of the advisers to find a balance between control and state
duty, says Abhijit Joshi.
Working with patriarchs
5. For the next generation, meanwhile, as they start to get more involved in the
Family business, some of them find that they are unwilling to take it over.
This is especially the case in India, Joshi cautions, where some businesses can be
extremely complicated, spreading to 200 to 300 companies.
Therefore, it is vital for families to assess the views and levels of willingness of the
next generation before putting any type of structure in place.
Encouraging the next generation
6. Also a vital aspect to managing family wealth, Abhijit Joshi says that the quality of advisers in India
needs to improve.
He points to both soft and hard skills as lacking in many cases, as wealth continues to accumulate in
India and also moves abroad.
Succession planning, for example, is an area which advisers need to pay special attention to, he
adds.
This is because much of the family wealth in India has been created in the last 20 years and families
will need to move into the succession stage sooner rather than later.
From a global perspective, as many family businesses are expanding overseas and a large amount
of wealth has been brought with them, issues like tax laws across multiple jurisdictions, currency
exchange rates and financial reporting have become critical.
This also requires advisers in India to upgrade and expand their skills to an international level.
Quality of advisers