Practice Drills: Simulating a Family Office Asset Allocation Decision

A simulation course for investors who already know how family offices think and now want to make the call themselves. You are handed the brief for a fictional Indian business family that has just sold part of its company and holds a large, lopsided balance sheet: a concentrated promoter stake, real estate, a pile of new liquidity and three generations with different needs. Working as the family's CIO, you rebuild the total balance sheet, convert family goals into liabilities and cash-flow buckets, and write the Investment Policy Statement. You then measure risk capacity, adjust for the promoter stake and human capital, set liquidity floors and map tax and holding-structure constraints. Next you build capital market assumptions for Indian asset classes on a post-tax, post-fee basis, construct and stress-test candidate portfolios against real Indian drawdowns, size alternatives and global exposure, choose vehicles, plan deployment and write rebalancing and governance rules. You finish by resolving a family disagreement, presenting to the family council and running a full allocation decision on a new brief. All family figures are illustrative; the frameworks are real.