LC Ideas: Views & Insights
Winning together - Lighthouse Canton’s playbook for the fast growing India market
Table of Contents
It is an understatement to say that the wealth management industry in India is undergoing a massive change. Not only is the industry growing at a fast pace, but new consumer preferences are emerging and new digital models for servicing clients are being adopted.
According to Knight Frank’s flagship study, ‘The Wealth Report 2024’, the number of ultra-rich Indians will rise by 50.1% to 19,908 in 2028 from 13,263 in 2023. This is the highest growth for any country in the number of ultra-high net worth individuals (UHNWIs), with a net worth of $30 million.
Sumegh Bhatia, Managing Director, CEO for India at Lighthouse Canton, delivers his insights with precision and determination, outlining the strategic approach Lighthouse Canton has adopted to achieve excellence in the ever evolving and exciting landscape of wealth management in India.
This is where Lighthouse Canton is carving out a niche for itself, building distinctive capabilities that set it apart from other companies with 15, 20, or even 25 years of market presence.
“You need to be confident in identifying your core capabilities that define you as a market participant and build on those capabilities. When people start associating you with those strengths—the ones you want to build on—it naturally attracts clients who value those capabilities. That’s where Lighthouse Canton’s focus on India is right now: on building those key capabilities that sets it apart.”
This is Part I of our discussion with Bhatia and his team.
Seizing opportunity and building capabilities to tap India’s wealth expansion
Overall, India’s wealth management sector is unique due to its sheer volume potential. The market’s opportunities lie in its expansive reach. The country’s wealth is distributed across various segments, from ultra-high-net-worth individuals in tier-one cities to millionaires in tier-three and tier-four cities.
To capture this diverse wealth, Lighthouse Canton is firstly scaling its operations significantly and secondly building its capabilities to provide value added services to its clients.
Bhatia explained: “The volume aspect is crucial for several reasons. Firstly, by operating in both the ultra-high-net-worth individual and institutional spaces, we can cater to a diverse client base, allowing us to broaden our market presence. Secondly, this enables us to manage large transactions efficiently, which is essential for maintaining a competitive edge in both segments.”
"This dual focus on UHNWIs and institutions allows us to leverage the strengths of each segment while providing bespoke solutions that meet their distinct needs."
For instance, managing a substantial private equity fund or executing significant capital markets transactions requires a broad client base to be viable.
According to Bhatia, while many private banks in India excel in catering to ultra-high-net-worth families, they often concentrate on a narrower segment of the market. Lighthouse Canton on the other hand, is adopting a broader approach.
“Balancing extensive reach with substantial volume is key to being both competitive and impactful in today’s diverse market,” according to the India CEO.
This strategy allows the company to serve a wider range of clients effectively, ensuring their unique needs are met at every level of wealth and across various segments.
Besides capturing the volume of the market by expanding capabilities, Lighthouse Canton also enhances its client experience with an extensive suite of investment coverage and capabilities, which spans from Debt Capital Markets (DCM), Equity Capital Markets (ECM), Asset Management (AM), Global Multi-Family Office (GMFO), and the Private Client segment.
The capital markets and alternative asset management space has been built out by Manas Chadha, Managing Director & co-founder for the India business. These have been key pillars of growth for the company and have contributed significantly to its overall market strategy and success.
It is also looking to go more in-depth into market segments of focus.
“We have made notable strides, especially in specific market segments. As an example, our presence is particularly strong in the private markets, where our venture capital and venture debt funds have bolstered our reputation.”
Read more: The private market boom in Asia is bringing in new trends
Also Read: Venture Debt: A Cornerstone Of Private Credit Opportunities
Numbers back this approach of Lighthouse Canton. For India, Preqin research holds a positive long-term outlook for private markets. Private capital grew remarkably, doubling in the last five years to outpace other Asian countries, and private debt in India has the largest single-country AUM in APAC, according to their June 2024 press briefing.
Aligning with the evolving demands of wealthy Indian clients
As the Indian market becomes deeper, affluent clients expect more than traditional one-size-fits-all services. They now demand diversification, global access, and customised advice—areas where Lighthouse Canton excels.
The company's in-house structuring advisory services manage both Indian and global holdings, crucial as high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) look beyond domestic markets.
The company’s office localities mean that it is able to help clients in establishing operations in key financial centres including Dubai International Financial Centre (DIFC), GIFT City or Singapore. It is also able to integrate key holding structures such as AIFs and Singapore Variable Capital Companies (VCCs) into its global execution vehicles, providing seamless access to international markets with regulatory and tax advantages.
Read More: Five things about Singapore’s VCC structure that you did not know
Read More: GIFT City: Guide to Investing in India’s Financial Crown Jewel
This aligns with the rising demand for global diversification among India’s wealthy, who seek sophisticated investment vehicles to protect and grow their wealth across multiple jurisdictions.
"The founding objective of Lighthouse Canton in India was to cater to the upper end of the market. As this segment grows, we're noticing a trend where these clients are increasingly looking to go global, beyond their domestic investments in India," explained Bhatia.
Lighthouse Canton is also enhancing its structuring and advisory services, offering access to top global banks and boutique managers, ensuring clients receive customised, forward-thinking solutions. This is as there is a growing preference among wealthy individuals and families to gain offshore exposure beyond cash and property.
A strong in-house technology platform is also part of the offering to clients in India. This is to meet the growing demand for transparency and convenience in wealth management and family office advisory, particularly from younger, tech-savvy new generation clients who expect real-time portfolio visibility and agility.
“The goal is not merely to expand coverage through traditional methods such as opening new branches or hiring more personnel. Instead, we are considering alternative approaches, such as leveraging online platforms and multiple touchpoints to engage clients and building varying service levels into the wealth technology stack,” Bhatia added. “For example families in India require more sophisticated, institutional-grade services, and we are building out the global advisory framework for them and integrating Lighthouse Canton’s proprietary platform, LC Vantage,” says Bhatia.
By combining deep market knowledge, sophisticated structuring capabilities, and cutting-edge technology, Lighthouse Canton is well-positioned to meet the increasing demand for comprehensive, globally integrated wealth management solutions in India.
Also Read: The next-gen client engagement in wealth management is emerging
Talent and culture
Another trend Lighthouse Canton is observing among India’s wealthy is a shift in focus—not just on maximising returns but on safeguarding and growing their wealth with a demand for personalised value propositions for them.
Wealth management firms traditionally concentrated on recruiting talent with strong sales and product expertise. However, to thrive in an increasingly digital and client-centric landscape, they need to broaden their talent pool to include advisors and analysts with skills in digital platforms, data analytics, and behavioral economics.
This growing demand for experienced professionals who have navigated various market cycles is influencing how the company approaches hiring.
“This perspective significantly shapes our talent acquisition strategy,” Bhatia noted.
Earlier this year, Lighthouse Canton brought on board two senior executives in the leadership team in India to align with this focus - Salil Thanawala and Devesh Wadhwani.
Salil Thanawala joins as Head, Global Multi-Family Office (India), bringing with him over 17 years of experience and will lead the efforts to scale the family office proposition to clients in India. His role will also see him develop the investment corridor between Asia and the Middle East, leveraging key vehicles and capabilities of the global team.
Alongside him, Devesh Wadhwani joins as Executive Director, Key Markets. Devesh has over 15 years of expertise in the financial services industry, with a track record of building private banking teams and developing geographical markets. In his new role, Devesh will oversee the overall geographical expansion of the business in new markets in India.
Bhatia explained the talent strategy of Lighthouse Canton, “Professionals who have worked across multiple economies, like China or the U.S., bring unique perspectives that are shaped by diverse market transitions—from middle-income to high-income economies. This experience allows them to understand shifts in market dynamics and adapt to changing conditions in ways that might be difficult for those who have only operated in a single market. "
"This is why the talent we bring on board is truly global, providing the broader insights and flexibility needed to thrive in a complex and evolving landscape.”
Also Read The forces behind Lighthouse Canton’s strategic talent expansion
