Nuvama: Tier-2 Ultra-Rich Chase Double-Digit Returns, Lag in Succession Planning

• Tier-2 UHNIs prioritize growth assets, targeting 10-12% minimum returns, benchmarking against their operating businesses.
• They lag metro counterparts in formal succession planning, often waiting for liquidity events to formalize structures.
• Rising interest in AIFs, unlisted, and pre-IPO opportunities due to their growth potential and business-like risk-reward profiles.
• Shift from direct real asset ownership to unitized, professionally managed vehicles like REITs and InvITs for capital efficiency.
• UHNI investment behavior is driven by business economics, leading to more mobile, professionally managed capital and global diversification.

Why It Matters: Tier-2 UHNIs chase high returns linked to business growth, while metro UHNIs lead in succession planning.