Adventum Offshore: Raising The Bar & Going Far

Rajanya Ravasia,Founder & Director

Rajanya Ravasia, Founder & Director

Emron Samuel, Director & Amit Singh, Director

A wealth management company with a difference, Adventum Offshore is (literally) taking its investors places by offering diversified strategies through offshore property investments. And with a network of 130 HNI clients in 5 years, the company seems to be on a roll.

What if it were possible to better the return on a property, not by altering the level of risk but by adjusting the location? By finding opportunities where jurisdictions were more favourable and tax-friendly, the rents higher as compared to the borrowing costs and the property cycle better placed than in one's home country? What if it were possible to find the right location where the currency and FX could both become an additional driver to the growth engine to one's investment? Well, give yourself a pinch because this is all real.

Utilizing these simple yet effective ideas, Adventum Offshore has devised a strategy to enable clients to maximize their wealth strategy without altering their risk appetite.

Opening Doors For Contemporary Investors
After a certain stage of wealth creation, wealth preservation and diversification become paramount and, perhaps, equally challenging. Adventum will see the contemporary investor through this challenge and help them go global when it comes to lucrative investment options.

Founded in 2015, Adventum is an investment and wealth management firm that aims to lead the contemporary investor towards identifying and capitalizing on the most astute, property investment options across the globe. As a complete offshore services provider, it has put together a qualified and insightful team equipped to offer investors a comprehensive range of portfolio services. From capital export to capital flow, capital deployment and leveraging strategies ­ all of its services are planned in a compliant, secure and transparent manner to implement a diversification strategy that mirrors an individual investor's requirements, limitations and appetite for risk.

“At times, it is important to step out of your comfort zone to realize significant gains. That's when our advice, experience and knowledge of the offshore market becomes indispensable to our clients ­ be it a new or a seasoned offshore investor,” explains Rajanya Ravasia, Director and founder of the company.

“At Adventum we firmly believe that when it comes to investing it's all about thinking like most people won't, so that you can create the wealth and a legacy that most people can't,” Ranjanya says, emphasizing how even today India provides only a few windows for exporting one's capital overseas, especially for realestate. He goes on to explain how, when it comes to the acquisition of UK properties, agents do approach Indian clients. However, they merely showcase the products to Indian clients, failing to offer advise on highly-complicated yet critical aspects such as local property laws or transactional and taxation details, leaving the clients uncomfortable. To make such a considerable investment, which ranges from several lakhs to a few crores, an investor needs to have great trust and faith in an organization, its team and its product offering. This significant market helped Rajanya think of the idea of Adventum a little over five years ago. Today the company acts as an inclusive financial firm, assisting clients to acquire, leverage, furnish and manage UK property and operations as seamlessly as possible. “We have managed to make the property purchase into a wealth product that can be passively managed by clients from within the comfort of their own home,” remarks Rajanya.

A Straight Forward Model, Immense Knowledge & An Astute Foresight
Adventum prides itself on making a success of an investment model that may be simple to understand but is complicated to execute, and they have managed to make a success story of it. To begin with, the company focuses on identifying offshore residential properties which are affordable and in prime postcodes, typically in city-centre locations, lowering vacancy risk. Next, the focus shifts to locations where the rental yields are higher than mortgage costs, ensuring a positive carry on the asset in which their clients invest.

Finally, they leverage it to better the returns on the equity deployed.

However, they also filter for properties to be located in countries that have established hard currencies so that the foreign exchange (FX) driver can play out in favour of the investors from emerging markets such as India and China.

Given that the rental income and mortgage repayments are matched in the same currency ­ Adventum cleverly manages to avoid an FX risk for the client on a market to market basis whilst ensuring that there is a levered FX benefit playing out on the entire value of the asset acquired, with reference to the equity deployed. As the outstanding debt on the asset reduces over the investment horizon, it results in the build-up of an investor's equity in the property. This ascending value benefits the investor, even showing a long-term positive effect of FX when one calculates the return on investment in the original currency of investment.

The last step they explain is to let the capital play out over the investment horizon. Owing to the positive carry the asset delivers, the investor is not limited to deriving profit on his investment from capital growth alone. Investing in mature locations ensures long term capital growth, but most importantly ensures low vacancy risk and in turn, a more calculated investment risk.

Leveraging The Power Of Compounding And Multiplication
Adventum claims to leverage three primary drivers when it comes to its investments - positive rental carry (rental delta), currency gains (FX) and capital growth, explaining how each of these work in favour of the investor in different proportions over the years of investing. However, they all work positively for the investor as a trend line. Compared to an onshore investment in India working purely on Capital Growth (Speculative) and against the headwinds of Rental Delta and FX, an offshore strategy aligns all three drivers in favour of the investor. This means it multiplies to enable better reward for the same residential risk and also compounds with multiple years passing on the investment horizon. Talk about a winning formula!

Beginning Where Others Stop ­ Setting High Standards Of Customer Service
Adventum offers value for money, charging nominal advisory fees for property procurement, transaction advice, setting up the entire structure, execution (delivering mortgage on the asset) and monitoring the asset (furnishing and managing). “As opposed to the typical brokerage process in
India, where the client-agent relationship ends once the property is bought, our client relationship actually starts after property acquisition, when we begin managing the corporate structure, reporting to RBI annually and administering the property and its income on client's behalf,” explains Rajanya.

To unfurl the potential of UK-leveraged transactions, an investor would typically require a UK company set up, property and tax advisory. Not to mention access and know-how to the right banks willing to provide mortgages to brand new companies with foreign shareholding. All of these can be challenging pieces of a puzzle to put together. Adventum has executed this perfectly for every single client that it has done business with.

A Crisis That Became A Catalyst For Growth ­ How It All Began
When Rajanya returned from the US in 1997 to join his family business, he realized that the big bang budget of 1991 has tremendously diminished the value of many of the family's white elephant businesses. Hence, he decided to revitalize his family's wealth by following the path his grandfather had taken and chose to foray into the real estate business ­ a path he knew would be fraught with both back-breaking challenges and great rewards.

After he managed to make a name for himself in the real estate business, Rajanya completely exited the Indian real estate land holding space in 2010 when India was experiencing the grip of the global financial crisis, which caused the rupee to lose against the dollar significantly. This compelled Rajanya to dollarize the inter-generational share of wealth he had unlocked so that he could nurture it for future generations. To gear up these large portfolios and achieve better returns, Rajanya also created massive ecosystems by developing banking relationships in these countries to obtain the necessary financings.

The Genesis & Beyond
Unsurprisingly, with the goodwill of consolidating one of the largest landed estates in Mumbai, Rajanya had won over a substantial number of friends and business colleagues, who wished to utilize his astute wealth preservation strategies. As he was consulting these families, he noticed the dire need for a trustworthy advisor to handhold Indian HNIs to explore offshore investment options. This personal journey became the genesis of incorporating Adventum formally in 2015. Back then, all the giant wealth management companies were offering similar solutions around the Indian rupee due to the lack of expertise and products when it came to investing offshore. This market gap bestowed Adventum with an accelerated window to spread its story. It established several distribution channels by working hand-in-hand with the country's largest and most reputable wealth management and distribution companies, which offered Adventum's strategy to their existing client base.

Adventum leverages three primary investment drivers - positive rental carry (rental delta), currency gains (FX) and capital growth, making them work in favour of the investor in different proportions over the years

The fact that it was a dollarized wealth preservation strategy resonated with a lot of HNIs, who had recently witnessed the rupee tumble during the global financial crisis. “We were ultimately at the right time at the right place in terms of expertise and experience,” affirms Rajanya. Adventum further chiselled its competence by bringing on board veteran bankers like Emron Samuel and Amit Singh (Co-founders and Directors, Adventum Offshore). They didn't just bring in their entire skillset to engage Adventum with the wealth management and distribution world but also leveraged their existing relationships to give Adventum the kickstart to go to the market quickly. While Emron and Amit have been instrumental in creating the distribution network for the company, Rajanya plays the role of stitching together the opportunities with his vast knowledge of the real-estate market overseas, the financings and legalities.

This empowered the company to earn a stellar reputation as a credible name for transactions not only across the wealth management channels across India but also among the Indian HNIs. “It's very encouraging when the clients we meet for sales discussion have already heard great things about us. We intend to maintain this reputation as we grow,” avows a determined Rajanya. Today, catering to many HNIs from various corners of India (primarily from Bangalore, Mumbai, Delhi, Calcutta and Ahmedabad), Adventum has grown it's AUM (Asset Under Management) from £5 million in 2015 to a whopping £200 million.

Keeping Honesty & Integrity At The Forefront
There is an emphasis on one word that's always followed throughout Adventum: Integrity. “We are proud to be an honest service provider, one who doesn't shy away from admitting to our clients when we don't know something and getting back to them after learning the same, rather than ill-advising or misadvising them,” asserts Rajanya. Adventum has an extensive presence with offices in Mumbai, Dubai and London and a team strength of 25 people. While the teams comprised of bankers are dedicated to managing remittances from India, the group of accountants administer the day-to-day bookkeeping and banking of the companies. Furthermore, the company closely works with a strong ground force of local property agents and developers in the UK.

Strategic Alliances Stem From Trustworthy Relationships
Determined to make its offerings a class apart from the rest, Adventum keenly identifies the challenges in the international transaction and solves them with a perspective of not just ensuring that the problems do not resurface, but ascertaining that the solution brings delight to the transaction. To demonstrate, in 2017, when UK introduced ring-fencing laws that discouraged foreign investors from banking with UK banks and forced them to bank with offshore entities, Adventum struggled to open transactional banking accounts for a few months. Consequently, the company established a strategic partnership with an FCA-regulated transaction banking services company. This relationship enabled Adventum's clients to open banking facilities within 48 hours.

Likewise, its alliance with fiduciary and trust service companies like ZEDRA helped Adventum smoothly launch and manage the administration of its clients' corporations in the UK.

“Adventum keenly identifies the challenges in the international transaction and solves them with a perspective of not just ensuring that the problems do not resurface, but ascertaining that the solution brings delight to the transaction”

The Future ­ An Exponential Growth Story In The Making
Triggered by the COVID crisis, the company is in the process of partnering with blockchain companies to enable secure on-boarding of new clients from a KYC and AML perspective. Adventum is also in the process of partnering with a Financial Institution in the UK to offer a seven-year, interest-free acquisition of UK property in exchange for rental income during the deferred payment term; a true global first as a product. Adventum has recently expanded its geographical presence with a sales office in Dubai to serve the ex-pat population who desire to acquire the assets in the UK. Growing further, the company aims to add seven more sales offices in partnership with UK developers leveraging their existing offices to offer its expertise to clients from South Africa, China, Hongkong, Middle East and Egypt. Aspiring to raise the bar higher with every project it takes on, Adventum is leaving no stone unturned to ensure that its product continues to succeed and the investments of its clients continue to outperform traditional market investments.

Emron Samuel, Director
With Over 22 Years Of Experience In The Banking, Sales And Distribution And Investment Banking, Emron Is Considered An Authority In The Field Of Sales And Marketing, Bank Treasury And Investment Banking. Emron Has A Winning Track Record And An Extensive Experience Of Managing Relationships With Corporates, Banks, Financial Institutions And Distribution Entities (Banks, National Distributors And Independent Financial Advisors) On A Pan-India Level.

Rajanya Ravasia, Director
Holding A Degree In Management & Marketing From Bentley College (Boston), Rajanya Plays The Role Of Stitching The Opportunities Around A Particular Real Estate Parcel With His Vast Knowledge Of The Real-Estate Market Overseas, The Financings And Legalities. He Spends More Than Half The Month In The UK And The Rest In India To Remain Close To Both, His Clients As Well As The Opportunities In The UK.

Amit Singh, Director
Amit Has Over 15 Years Of Experience In The Financial Services Industry, Particularly In The Areas Of Distribution, Corporate And Treasury Sales And Product Structuring. Amit Has Previously Been An Integral Part Of Reputed Organizations Such As Birla Sunlife Asset Management Company, Standard Chartered Bank, IDFC Investment Advisors And Tata AMC.

Quick Facts:
Locations: Mumbai (Headquarter), London And Dubai
Offerings: Portfolio Planning & Review, Transactional Services, Comprehensive Legal, Accounting & Tax Solutions And Property Management
Adventum In The Spotlight:
1. Its Model Is Driven By A Healthy Rental Return On The Backdrop Of The Low Cost Of Borrowing, Foreign Exchange Gains And Capital Growth ­ All Of Which Multiply With Each Other To Provide A Superior Return, While Keeping The Risk Level Extremely Low.
2. It Advises Clients Regarding The Best Way Of Exporting Capital From India And For Optimizing The Taxes In The UK To Ensure Better Returns.
3. It Has Catered To Over 130 Hnis Across Sectors From Various Corners Of India.
4. It Has Grown Its Aum From £5 Million In 2015 To A Phenomenal £200 Million At Present.