Tech tycoon’s family office bets on AI for $10 billion fund

PremjiInvest, the largest Indian family office that manages more than $10 billion for software tycoon Azim Premji, will invest more money in artificial intelligence companies while fine-tuning its proprietary AI investing tool, a senior executive at the firm said.

The company, one of the first large Indian asset managers to use AI tools in the private equity sector, is now also working on AI quant models for its public market bets, said TK Kurian, its managing partner and chief investment officer. Said in his first interview after assuming the role in 2017. The asset manager, which has seen “exponential returns”, will also invest more in the AI ​​sector, he said.

Investment firms around the world, including BlackRock Inc. and SoftBank Group Corp., are relying on AI to analyze data streams in real-time to gain market insight and are looking to invest further in this area. According to Kurian, PremjiInvest started developing AI tools three years ago and hired 14 AI engineers. Also, it started supporting companies entering the emerging technology sector.

AI is helping the asset manager examine over 10,000 companies globally on 600 parameters to identify investment opportunities. Kurian said the company hopes the entire exercise will also give it a bird’s-eye view of emerging technologies and trends that can help it stay ahead of its peers.

Cohesity Inc. – a data-management software company, Holistic AI – an enterprise software business based in London, Ikigai and Pixis are among the companies in the space that PremjiInvest has backed so far.

Kurian plans to allow open-source developers access to some of its AI tools. He said the fund’s engineers are also developing platforms to help India’s overburdened courts resolve cases faster and aid governments’ efforts to offer services more effectively.

investment strategy

Kurien said technology and financial services will be the top sectors that PremjiInvest will bet on. In the private markets in India, the other two sectors in which the company invests are consumer and healthcare. In the US, investment focuses on the health care and technology sectors.

Premji, the reclusive-billionaire founder of Wipro Ltd, set up the family office in 2006 as a permanent investment vehicle to generate profits to support his philanthropic endeavours. He has donated most of his wealth to humanitarian causes in India.

Kurien, who previously worked with Wipro for more than 16 years building its operations department, is looking for investment targets in the US with the latest technologies that can be brought to India. PremjiInvest’s 120-member team, working out of its Menlo Park, California and Bengaluru, India offices, oversees the investments.

Kurien declined to give further details, saying the organization returns about 5% of its capital to Premji’s philanthropic foundation every year.

According to Kurian, PremjiInvest’s assets are allocated across investments in private investments, publicly traded equities and other funds. The 18-year-old company has seen a four-fold increase in assets under management in the last eight years.

“We are patient capital with no exit time limit,” he said.

one more thing! We are now on the WhatsApp channel! Follow us there so you don’t miss any updates from the world of technology. Click to follow HT Tech channel on WhatsApp Here To join now!