Indian family offices ramp up pre-IPO investments joining SBI Funds
Indian family offices, think of as the investment arms of big business families, are putting more money into companies before they go public, hoping to catch the next big thing early.
Big names like Azim Premji's PI Opportunities Fund and Alrox Enterprises, the family office of Sun Pharmaceutical's promoters, recently joined SBI Funds Management's pre-IPO round, and last December, both Premji's and Rakesh Jhunjhunwala's family offices participated as anchor investors ahead of ICICI Prudential Asset Management Co.'s IPO.
Family offices move into unlisted companies
Family offices used to stick mostly to buying stocks already on the market, but now they're branching out into startups and unlisted companies.
According to Riddhiman Jain, managing director and head of investment strategy and solutions at Waterfield Advisors, these investments let them put large sums to work while doing their own deep research.
Even though IPO profits have dipped lately (from 28% in fiscal 2025 to just 8% in fiscal 2026), these investors are investing directly in startups and unlisted growth companies, hoping for long-term wins.