The 2008 Financial Crisis: A Defining Moment

Nothing can truly describe what 2008 was like. The stock market index was down nearly 65%. If someone had 1 crore, they were left with just 10 lakhs. It was one of the hardest times in my professional life.

In today’s episode, we have S. Jani, the man who manages wealth for some of India’s richest people. After surviving the 2008 financial crisis, Sandeep took his nearly two decades of experience as a wealth manager and went on to build Dezerv, a wealth-tech company with a twist. With 11,000 crores in total investments today, Dezerv’s journey is truly unique.

In this episode, Sandeep shares stories of the bizarre world after the 2008 crisis, breaks down India’s wealthy ecosystem, and provides insights into building Dezerv brick by brick.

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Early Life and Family Struggles

Like many, my family’s journey was shaped by migration. My grandparents moved to India from what was then undivided Pakistan. When you leave everything behind, you start from scratch. My father grew up in a refugee camp, and that experience deeply influenced his approach to hard work and money.

I was born in Nagpur and lived there until 1992 before moving to Mumbai. The transition was stark—Nagpur had an easygoing environment, whereas Mumbai was fiercely competitive. This environment shaped my interest in finance, especially during the Harshad Mehta scam, which sparked my curiosity about the stock market.

Entering the Financial World

In 2003, I joined IIM Bangalore and eventually started my career at Kotak Bank. At that time, Kotak was transitioning from a brokerage firm to a bank, and wealth management was emerging as a crucial service.

The stock market boom from 2004 to 2008 was extraordinary. Every investment we recommended yielded massive returns. Wealth managers, including myself, felt invincible. With the markets on a tear, a few of us decided to take the plunge and start our own venture.

The Birth of IIFL Wealth and the 2008 Market Crash

By late 2007, we had decided to leave Kotak and start a new wealth management firm. We partnered with India Infoline (now IIFL), leveraging their infrastructure to build what became IIFL Wealth in April 2008.

However, 2008 was brutal. On January 22, the market saw its first major correction. Kotak’s stock fell by 90%, and IIFL Holdings’ stock dropped by 95%. These weren’t just numbers—if someone had 1 crore, they were left with just 10 lakhs. It was devastating.

Starting a new firm in such a market seemed impossible, but we persisted. In early 2009, we all took salary cuts and reassessed our situation. Surprisingly, the crisis worked in our favor. Many global wealth management firms exited India, leaving a vacuum for us to fill. This allowed us to capture a market of business owners and high-net-worth individuals seeking wealth managers.

The Founding of Dezerv: A New Approach to Wealth Management

With years of experience behind me, I realized that first-generation wealth creators lacked quality wealth management services. Traditional wealth managers primarily catered to second and third-generation wealth holders, focusing on fixed income, equity, and mutual funds. However, new-age wealth creators, such as startup founders with stock options, required different strategies.

At Dezerv, we do things differently. We don’t just offer investment options—we take full responsibility for managing portfolios. We rebalance, advise when to enter and exit, and ensure long-term wealth growth. Traditional wealth managers provide a menu of options; we provide end-to-end portfolio management.

Understanding the Wealth Management Ecosystem

To be a client of a wealth manager, one must first have wealth. The financial ecosystem consists of three types of individuals:

1. Savers – Those who keep their money in bank accounts.
2. Investors – Those looking to grow their wealth through mutual funds, stocks, and bonds.
3. Traders – Those actively trading in the markets, prioritizing strategy as much as returns.

Banks serve savers, while traditional wealth managers cater to seasoned investors. However, new wealth creators require a different approach—one that understands their unique needs and provides active, informed guidance.

Conclusion

The 2008 crisis was a turning point in my career. It taught me resilience, the importance of adaptability, and how to navigate financial turbulence. Dezerv was built with the vision of providing quality wealth management to India’s first-generation wealth creators. Through data-driven strategies and hands-on portfolio management, we continue to redefine wealth management in India.

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FAQs

1. What is Dezerv?

Dezerv is a wealth-tech platform that provides professional investment management services for India’s new-age wealth creators. Unlike traditional wealth managers, Dezerv takes full responsibility for portfolio management.

2. How did the 2008 financial crisis impact wealth management in India?

The crisis led to a major market crash, causing many global wealth managers to exit India. This created an opportunity for new firms like IIFL Wealth and later Dezerv to fill the gap and serve high-net-worth individuals.

3. What makes Dezerv different from traditional wealth managers?

Traditional wealth managers provide investment options, leaving clients to make decisions. Dezerv actively manages portfolios, providing strategic insights and making informed decisions on behalf of clients.

4. Who can benefit from Dezerv’s services?

Dezerv is ideal for first-generation wealth creators, startup founders, business owners, and professionals who need expert wealth management beyond basic financial products.

5. What are the key lessons from the 2008 financial crisis?

The crisis underscored the importance of diversification, professional wealth management, and adapting investment strategies to economic shifts. It also highlighted the need for experienced financial advisors who can navigate uncertain markets.