Daybreak - From luxury cars to lunch with celebs — wealth managers are going all out to woo the ultra-rich

Episode Date: January 27, 2025

Welcome to the world of luxury-lifestyle management, where firms like RedBeryl, Indulge Global, and Quintessentially play the role of concierge for their ultra-wealthy clients, making the impossible possible.Now this sort of thing has become even easier for the rich. Because their wealth managers are also taking care of some of these requests. It isn’t a one -off thing. Companies like RedBeryl, Indulge GLobal, Quintessential – all of which play the role of concierge for their ultra wealthy clients – are increasingly partnering with wealth managers to edge out competition and increase their clientele. In today’s episode, we dive into how wealth managers are finding new ways to delight the ultra-rich. Tune in Daybreak is now on WhatsApp at [phone]. Text us and tell us what you thought of the episode!Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.

Hi, this is Rohan Dharma Kumar. If you've heard any of the Ken's podcasts, you've probably heard me, my interruptions, my analogies, and my contrarian takes on most topics. And you might rightly be wondering why am I interrupting this episode too. It's for a special announcement. For the last few months, I and Sita Raman Ganeshan, my colleague and the Ken's deputy editor, have been working on an ambitious new podcast. It's called Intermission.

We want to tell the secret sauce stories of India's greatest companies. Stories of how they were born, how they fought to survive, how they build their organizations and culture, how they manage to innovate and thrive over decades, and most importantly, how they're poised today. To do that, Sita and I have been reading books, poring over reports, going through financial statements, digging up archives, and talking to dozens of people. And if that wasn't enough, we also decided to throw in video into the mix. Yes, you heard that right. Intermission has also had to find its footing in the world of multi-camera shoots in professional studios, laborious editing, and extensive post-production. Sita and I are still reeling from the intensity of our first studio recording.

Intermission launches on March 23rd. To get an alert as soon as we release our first episode, please follow Intermission on Spotify and Apple Podcasts or subscribe to the Ken's YouTube channel. You can find all of the links at the ken.com slash I am. With that, back to your episode. Imagine getting a call at 3am on a weekday. You're drowsy, you're wondering what's going on,

but you know you have to take that call because it's from a very important client. So you pick up the phone all blurry-eyed, And then your client makes this request. They want nothing less than a penthouse at a luxury hotel in Dubai called the Royal. And they want that lux room next week for three whole days. Confused? Well, this is exactly the situation Indar was confronted with a couple months ago.

And in his line of work, this sort of thing is completely normal. You see, Indar works at Red Burrell Lifestyle Services. This is a luxury lifestyle management firm. So it's basically responsible for helping rich people do rich people things with a single phone call. Things like getting tickets to a high profile concert or nabbing a luxury car or handbag. When you're Uber rich, the sky is the limit. Literally. Because these are the guys who will also hook their clients up with private jets if that's what they need.

How rich are we talking? Well, the client Indar spoke to was very. willing to cough up close to a fraud for the experience. And now, this sort of thing has become even easier for the rich, because their wealth managers are also taking care of some of these requests. It isn't a one-off thing. Companies like Red Barrel, Indulge Global, quintessential, all of which play the role of concierge for their ultra-wealthy clients, are increasingly partnering with wealth managers to edge out competition and increase their clientele. Some of the wealth management companies these firms are looking to collaborate with our true beacon and

ASK wealth. In fact, a senior wealth manager at ASK wealth explained how it's done. He said when a client sticks around for long enough, they start treating their wealth managers like friends. And with that friendship comes certain requests. He recounts how some of his clients have asked him to help them procure an art piece, a luxury watch and even a pair of fancy shoes. As long as it's legal, they try their best to help them out. A former wealth manager from True Beacon said it's their job to go above and beyond because that's how they solidify their relationship with a client. Which is why tying up with these luxury lifestyle management firms makes sense.

But some wealth managers even choose to take care of their client's requests on their own. In today's episode, we dive into how wealth managers are finding new ways to delight the ultra-rich. Welcome to Daybreak, a business podcast from the Ken. I'm your host Rahal Philippos, and I'll be joining my colleagues Nikta Sharma every day of the week to bring you one business story that is worth understanding and worth your time. Today is Tuesday. Let me tell you something about the Uber rich that may come as a surprise.

They love a good discount as much as the next person. The founder of Red Barrel Services, Manoj Adla Kha, said even a 5 to 8% discount matters to them. Of course, a concierge service like Red Barrel tries to hook their clients up with the most luxurious experiences and services. But when you layer it with a discount, Manouj says that's just the icing on the cake. So these companies form partnerships with hotels, restaurants and the like, so they can offer their member clients the best prices possible. Red Barrel, for instance, has over 1,000 tie-ups with hotels and other entities.

Taj, Oberoi, Lila, you name it. So it's able to get its clients at least 15 to 20% discount. So let's try and understand how the Uber-Ridge decide which luxury lifestyle management firm to approach. Well, to begin with, they are all priced differently. So while a premium firm like Indulge Global charges its clients 4 lakh rupees with a 30-day trial option for 40,000 rupees, red barrel offers a black card to all of its applicants.

It costs half of what Indal charges in the first year. Their clients just have to pay an annual recurring fee of $90,000. But by using that card, clients can save up to $13,000 a year on average. Meanwhile, let's look at a brokerage company, Novama. It has an informal tie-up with financial services companies like American Express for their Centurion cards. With this, clients get access to concierge services along with lounge access and travel benefits. Meanwhile, the Ken spoke to other wealth managers, specifically two from ICICI-CI-Direct and IIFL securities.

And they said very often it's not an official thing, but done off the record on a personal level for engagement and for establishing trust with their clients. But now that wealth managers are kind of doing a lot of what luxury lifestyle managers do, why don't they just join forces? More on that in the next segment. Wealth managers are going through somewhat. of a makeover. They've been actively stepping away from that suit and tie look for their rich

clients. And now they're trying to reposition themselves as lifestyle brands to attract clients. Cross synergies with luxury lifestyle consultancies are becoming increasingly obvious in this space. It's win-win. Luxury lifestyle firms with smaller client bases are seeking partnerships with wealth management firms to cater to their rich clients. Everyone wins. Take the case of Nikhil Kamath. He's the quote. co-founder of True Beacon, and he's also an angel investor in Indulge. There were also talks to impanel Indulge with True Beacon to serve each other's elite clients. It's sort of like a barter in some ways.

But a former True Beacon wealth manager said that the arrangement didn't end up working out in terms of services, costs, benefits and profits overall. Meanwhile, Indulge also tried to partner up with ASK wealth earlier. But these conversations are yet to materialize into anything. concrete. You see, the thing is, wealth management firms are not averse to the idea of joining hands to serve their clients. Especially now, with new players joining the market, there is a need to differentiate, not just in terms of product proposition, but also in terms of offering. Now, that could range from offering clients a chance to invest in food tech firms Swiggy or

Elon Musk's SpaceX. But again, it has to make sense. So if a client says they want to meet Roger Federer, they also have to be ready to cough up $2 million and donate to his academy. In which case, a wealth manager would be happy to get them time with him over lunch or dinner. In fact, now, many wealth and lifestyle managers plan way in advance, factoring in the interests of their rich clients. Take Indulge, for instance. Indulge blocked tables at two or three restaurants and clubs in Qatar during the FIFA World Cup back in 2022. Red Beryl also has a team that looks after sourcing such tickets. Now, for a wealth manager looking to please their clients,

that sort of thing could be huge, especially considering that there are certain situations where these managers can't do much. When it comes to wealth managers, relationships are everything, especially when it's with coveted and Uber-rich clients. And this trend traces back to what international banks have been doing for ages.

In 2014, Citibank rolled out the Ultima Infinite Card in India, offering unlimited credit with exclusive travel and lifestyle experiences. Then of course you have American Express with its Amex Black Card, which essentially set the standard for concierge services. Managers also need to hobnob with premium real estate officials, because this particular sector has turned into a prime investment opportunity for their ultra-wealthy clients. For instance, real estate company Shoba developers is now partnering with several wealth management firms. This works out well for the real estate company,

especially when it's trying to sell some of its more premium and exclusive properties. But wealth management firms and large banks are cautious about fully investing in the infrastructure to meet Lux demands. And that's because these Uber-rich clients make only a small portion of their customer base. For banks, outsourcing these requests

is often the smarter move. A lot of the other banks do want to. to make that investment, not for a very small set of customers at least, but they do want to compete in the market, which is when they go ahead and collaborate with luxury lifestyle management firms like Red Barrel. For the ultra-rich, personalized experiences can make all the difference. For example, in July, Karan Bhaagat, CEO of 361, treated his 20 top clients to the Wimbledon finals in her VIP box, and the firm even hosted a dinner for its top thousand clients at Mumbai's famous Bastion restaurant

where getting a table is never easy. This is now their yearly ritual to keep high-value clients happy. So it isn't uncommon for these lifestyle concierges to hear from the boss of a big bank or a wealth manager once in a while asking for retire. But people in the business say

it has to make sense for everyone involved. Ultimately, wealth managers face a choice. Shell out for in-house capabilities or partner with luxury lifestyle firms because they can't afford to upset their ultra-wealthy clients. Daybreak is produced from the newsroom of the Ken India's first subscriber-focused business news platform. What you're listening to is just a small sample

of our subscriber-only offerings. A full subscription unlocks daily long-form feature stories, newsletters and podcast extras. Head to the Ken.com and click on the red subscribe button on the top of the website. Today's episode was hosted by Rahil Filippo's and edited by Rajiv Sien.