Redefining Wealth Management | Brijesh Damodaran @ Auxano Capital
Brijesh Damodaran’s inspiring journey from a corporate financial controller to the founder of Auxano Capital showcases the transformative power of entrepreneurship in the wealth management sector. His innovative approach and dedication to client success have allowed him to build a thriving business while enjoying the process.
🚀 The Motivation Behind Entrepreneurship
Brijesh's journey into entrepreneurship was fueled by a deep-seated desire to live life without regrets. He vividly recalls the moment he decided to take the plunge.
"I did not want to go to the grave, not doing whatever I wanted to do. I didn't want to have a regret."
This motivation led him to wealth management, a field he believed he could significantly impact while enjoying the process. For him, work isn't merely a job; it resembles a playground where he can make a difference in people's lives.
Finding Joy in Wealth Management
As Brijesh transitioned into this new role, he found joy in the daily challenges of wealth management. It is like sports to him, where every moment is filled with excitement and opportunities to learn.
"Every single day, every single moment, I'm enjoying. It's not like work, but it's like playing in a playground."
This passion not only drives his work ethic but also shapes the culture at Auxano Capital, where enjoyment and fulfilment are key components of their operations.
🔄 Transitioning from Corporate Life
The shift from a stable corporate environment to the uncertain world of entrepreneurship was not without its challenges. Brijesh had spent years as a financial controller in an American company, where he thrived on structured processes and predictable outcomes.
However, he soon realized that the traditional corporate world did not align with his aspirations. He wanted something more dynamic, something that would allow him to connect directly with clients and make a tangible difference in their lives.
Embracing the Unknown
Upon leaving his corporate job, Brijesh faced an identity crisis. The first six months were particularly tough as he struggled to acquire clients and establish his brand. Despite these challenges, he focused on building relationships and understanding the market.
"The first six months had zero clients, and I had my expenses to cover. It was a tough learning curve."
Instead of seeking help from friends and family, he built his client base through networking and hard work. He immersed himself in understanding the nuances of wealth management, preparing himself for the journey ahead.
🧠 The Importance of Mental Strength
Throughout his entrepreneurial journey, Brijesh emphasizes the significance of mental strength. He maintained a disciplined lifestyle, mirroring his corporate life for the first 18 months while establishing Auxano Capital.
"You need to have that mental strength. I lived the same lifestyle I had in corporate life, even when starting from scratch."
This mental fortitude not only helped him navigate the initial struggles but also instilled resilience as he faced various challenges along the way.
Staying Committed to the Vision
Brijesh's unwavering commitment to his vision kept him focused. He refrained from succumbing to the pressures of immediate success and instead concentrated on laying a solid foundation for his business. This long-term perspective proved crucial in building a sustainable business model.
💡 Establishing a Unique Wealth Management Approach
One of the cornerstones of Auxano Capital's success has been Brijesh's unique approach to wealth management. He recognized early on that traditional methods were often too complex for clients to grasp.
To simplify the investment process, he developed what he calls the "three bucket strategy." This model categorizes investments based on time horizons:
Bucket 1: Zero to three years - Focus on preserving capital.
Bucket 2: Three to five years - Conservative instruments.
Bucket 3: Seven years and beyond - Aggressive investments.
This straightforward framework allows clients to understand their options better and reduces the chances of miscommunication.
🔄Shifting Focus from Products to Time-Based Solutions
In a market saturated with complex products, Brijesh's shift from product-centric solutions to time-based strategies has set Auxano Capital apart. He believes that by focusing on the client's time preferences rather than specific products, clients can make more informed decisions.
"We moved away from product being the solution to time being the solution."
This approach not only clarifies the investment process but also empowers clients to take control of their financial futures.
⚖️ Adapting to Regulatory Changes
As Brijesh navigated the complexities of wealth management, he encountered numerous regulatory changes that impacted his business model. Rather than viewing these changes as obstacles, he embraced them as opportunities for growth.
"I look at threats as opportunities."
By adapting quickly to the evolving landscape, Brijesh ensured that Auxano Capital remained compliant while still providing exceptional service to its clients.
Building a Resilient Business Model
This adaptability has been crucial for sustaining long-term growth. Brijesh's ability to pivot and refine his business model in response to regulatory changes has allowed Auxano Capital to thrive in a competitive environment.
📈 The Evolution of Auxano Capital
From its humble beginnings, Auxano Capital has evolved into a robust wealth management firm. Brijesh's journey reflects a commitment to excellence and client-centric service.
Today, the firm manages an impressive amount of capital, boasting a four-digit crore portfolio. This growth is a testament to Brijesh's vision and the hard work of his dedicated team.
Why Not Become a Portfolio Manager?
Despite his expertise, Brijesh chose not to pursue a career as a portfolio manager. Instead, he wanted to create a holistic wealth management experience for his clients.
"I believe in adapting to the market and understanding the needs of clients."
By prioritizing client relationships and focusing on their unique needs, he has positioned Auxano Capital as a trusted partner in wealth management.
💼 Growth and Capital Management
Auxano Capital has seen substantial growth since its inception, driven by Brijesh's relentless pursuit of excellence. The firm's growth strategy focuses on building strong relationships and delivering personalized services to clients.
As he reflects on his journey, Brijesh notes the importance of surrounding himself with a team that shares his vision.
"We choose to work with clients who share a similar mentality; we don’t chase for the sake of chasing."
This philosophy has fostered a culture of trust and collaboration, further enhancing the firm's reputation in the market.
Current Scale and Client Relationships
Today, Auxano Capital manages significant assets, and the firm's client base continues to expand. Brijesh emphasizes that their growth is not merely a numbers game; it is about building lasting relationships.
"Trust is the currency. Our returns are part of it, but not the only thing."
The focus on trust ensures that clients feel valued and understood, which is essential in the wealth management space.
🤝 Building Trust Through Word-of-Mouth
Much of Auxano Capital's growth can be attributed to word-of-mouth referrals from satisfied clients. Brijesh’s commitment to providing exceptional service has created a ripple effect in the community.
"Most of our growth is purely by word-of-mouth."
This organic growth strategy highlights the importance of delivering value and maintaining strong relationships with clients.
Risk and Return Balancing
Balancing risk and return is a fundamental aspect of wealth management. Brijesh emphasises the importance of understanding each client's risk appetite.
"Many times, you have to ask the right questions."
By tailoring investment strategies to align with clients' goals and comfort levels, Auxano Capital ensures that clients are not only satisfied with their returns but also feel secure in their financial decisions.
📊 Exploring Private Market Opportunities
Brijesh's journey into the private market space was driven by a desire to capitalize on emerging trends and opportunities. He identified a significant shift in the investment landscape as local companies began attracting substantial attention from global players.
"With companies like Flipkart being acquired by Walmart, the local market was heating up. It was a clear indication that private investing was the next frontier."
This realization marked the beginning of Auxano Capital's venture into unlisted investments, where Brijesh saw potential for high returns and meaningful impact.
Understanding Investment Structures
To navigate the private market effectively, Brijesh had to familiarize himself with various investment structures. He highlights the significance of understanding the regulatory environment.
"Knowing the different categories of funds is crucial in private investing. It shapes how we approach opportunities."
Auxano Capital operates under various fund categories, including:
Category One: Focused on angel investments, typically requiring a minimum commitment of ₹25 lakhs.
Category Two: More flexible, allowing for a broader range of investment instruments and a minimum commitment of ₹1 crore.
Category Three: Primarily invested in public markets, requiring a different approach and regulatory compliance.
Brijesh emphasizes that understanding these structures allows for strategic asset allocation and better alignment with investor goals.
🌱 The Journey into Alternative Investment Funds
The transition to establishing an Alternative Investment Fund (AIF) was a pivotal moment for Auxano Capital. This move, initiated in 2019, allowed the firm to formalize its investment strategy and expand its reach.
"Creating an AIF was about bringing structure to our investment philosophy and providing our investors with a clear framework."
With the AIF, Auxano Capital not only diversified its portfolio but also attracted a new class of investors seeking access to private market opportunities.
Investment Strategies in Early-Stage Companies
Investing in early-stage companies requires a unique approach. Brijesh stresses the importance of thorough due diligence and understanding the startup ecosystem.
"We always look for companies that have already achieved some level of traction.”
Auxano Capital primarily focuses on pre-revenue or post-revenue startups, ensuring that they are not just betting on ideas but on viable business models.
📈 The Evolution of Investment Thesis
Over time, Brijesh's investment thesis has evolved significantly. Initially, the focus was on traditional sectors, but as the market matured, so did his approach.
"We've shifted our focus to emerging mega trends. Understanding what’s next is key to staying ahead."
This evolution has led Auxano Capital to explore sectors like fintech, deep tech, and quick commerce, which are poised for substantial growth.
Creating the Angel Fund
The launch of the Angel Fund in 2019 marked a significant milestone for Auxano Capital. With an Assets Under Management (AUM) of $25 million, the fund aims to provide investors with access to high-potential startups.
"We wanted to create a platform where investors could choose which startups to back, fostering a sense of ownership and engagement."
This hands-on approach has resonated well with investors, as they appreciate being part of the decision-making process.
🔑 The Category Two Fund and Its Importance
In 2022, Auxano Capital introduced its Category Two Fund, further diversifying its investment strategy. This fund allows for a mix of growth opportunities and strategic investments.
"The Category Two Fund provides flexibility. It enables us to invest in both early-stage companies and those poised for growth."
With a targeted AUM of ₹500 crore, this fund is set to play a crucial role in Auxano Capital's growth trajectory.
Key Learnings from Private Market Investing
Brijesh's journey in private markets has been filled with valuable lessons. He emphasizes the importance of patience and understanding market dynamics.
"Private investing is not for the faint-hearted. You need to be willing to wait for the right exit opportunities."
His experiences have taught him that successful investing often involves timing and recognizing when to act.
🔍 Sourcing Deals in a Competitive Landscape
In the competitive world of private investing, sourcing deals is a significant challenge. Brijesh has developed a multifaceted approach to identify promising opportunities:
"We rely heavily on our network. Many deals come to us through referrals and relationships we've built over the years."
By maintaining strong connections within the startup ecosystem, Auxano Capital has been able to stay ahead of the curve and access high-quality deals.
Advice for Aspiring Founders
For aspiring founders looking to attract investment, Brijesh offers practical advice.
"Focus on solving real problems and have a clear vision. Investors want to see that you understand your market."
He also stresses the importance of being adaptable and open to feedback, as the startup landscape is ever-changing.
📊 The Importance of Data and Governance
As Auxano Capital continues to grow, the importance of data and governance cannot be overstated. Brijesh believes that robust data management is essential for making informed investment decisions.
"Without data, you're just making educated guesses. Governance ensures that we are accountable and transparent."
By implementing strict governance protocols, Auxano Capital has built a reputation for reliability and trustworthiness in the market.
Maintaining Relevance in a Changing Market
The investment landscape is constantly evolving, and Brijesh recognizes the need for continuous adaptation.
"To remain relevant, we must embrace change and stay informed about emerging trends."
This proactive approach has allowed Auxano Capital to pivot its strategies and seize new opportunities as they arise.
🌟 Final Thoughts and Future Aspirations
Brijesh's journey from corporate finance to private market investing showcases the power of vision and determination. As he looks to the future, he remains committed to fostering innovation and supporting startups.
"Our goal is to empower entrepreneurs and help them realize their dreams. That’s what drives us."
With a clear focus on growth and adaptability, Auxano Capital is well-positioned to navigate the complexities of the private investment landscape.
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