How Membership Clubs, Collectibles, and PE Funds Reflect the Same Human Instinct

In a world of infinite choices, what we truly crave is something finite. Not just rare but curated, deliberate, and earned. That’s the hidden thread running through the world of luxury collectibles, private member clubs, and yes, private market funds. On the surface, these may seem like wildly different assets: an old Patek Philippe, a London dining club, a position in a late-stage VC fund. But underneath, they all tap into the same, very human instinct: the desire to belong to a world not everyone can enter.

For India’s top 1%, the performance of an asset is often only part of the story. The emotional quotient matters just as much, sometimes more. It’s not just about what you own, but what it says about you. What you’ve earned the right to access. This is not about ego, it’s about identity. When an entrepreneur collects art, when a professional pays the annual fee for a high-end private club, or when a family office co-invests into a PE fund that closed to others months ago, what they’re actually doing is staking a claim to a certain way of being. A lifestyle. A peer group. A private language.
It’s easy to dismiss this as status-chasing. But look closer. The instinct is more primal. Human beings have always created circles – tribes, if you will. Circles of trust, of belonging, of safety. In modern capitalism, those circles are formed not around survival, but around access, who gets the information first, who sees the deal flow early, who has the right to walk in without explaining themselves. That’s what collectibles and PE funds offer, in very different packaging.

Take collectibles. From art to watches to wine, Indian Ultra-HNIs have embraced this space with growing seriousness. According to the latest data, 94% of India’s top wealthy own jewellery as an asset, 73% own some form of art, and even luxury cars, once considered a pure lifestyle indulgence, are being viewed through the lens of passion-led investing. The investment value is clear. But so is the deeper pull. These are not just things, they are stories. They are trophies. Proof that you’ve arrived, yes, but also reminders of who you were when you acquired them. A painting from a trip to Paris. A watch commemorating a milestone. A limited-edition sculpture that only ten others in the world own. These objects aren’t passive, they are alive with meaning.

Now contrast that with the rise of membership clubs. Across India’s metros and even Tier 2 cities, private clubs have emerged as hubs of both leisure and legitimacy. 40% of India’s HNIs now consider membership clubs essential to their lifestyle. It’s not the tennis courts or the dining menu that draws them in, it’s the curation of the crowd. You’re not just buying access to a space. You’re buying into a group of people who are, by definition, like you or who you aspire to be like. These are spaces where capital is understood, not flaunted. Where you don’t need to introduce yourself. And in that silence, you feel seen.

Private equity funds operate in a remarkably similar way. To the outsider, they’re just financial instruments. But to those in the know, they’re much more intimate. Entry into top-quartile funds is rarely about capital alone. It’s about relationships. About being on the right list, in the right room, known by the right people. When an Ultra-HNI secures an allocation in a fund managed by a marquee GP, it’s not just a financial event. It’s social signalling at a very refined level. It says: I know where value is created. I know who creates it. And I’m close enough to be invited.

All of these collectibles, clubs, and funds rely on the same lever: scarcity. But not artificial scarcity. Meaningful scarcity. The kind that’s backed by quality, legacy, and belief. Scarcity is not about excluding for the sake of exclusion, it’s about crafting environments where quality thrives. Where trust is high and noise is low. Where the value isn’t diluted.

And here’s what’s interesting: this instinct is not limited to old money anymore. India’s first-generation wealth creators – founders, professionals, and digital entrepreneurs are just as drawn to this world. In fact, perhaps even more. Because for them, these symbols are not just reflections of inherited privilege. They are self-made milestones. They represent taste, access, and credibility that wasn’t handed down but earned.

The explosion of interest in PE, secondaries, and co-investments among India’s HNIs has little to do with market trends and everything to do with these soft dynamics. These investors aren’t just chasing IRRs, they’re chasing alignment. With top-tier GPs. With global themes. With other families that think the way they do. A private fund, much like a great painting or a private club membership, becomes a mirror. A reflection of identity. A quiet nod to being part of something rare and intelligent.
In a time when so much is available to so many, the truly wealthy are seeking what still feels personal. Not in-your-face luxury, but discreet advantage. Not visibility, but understanding. The future of investing won’t just be driven by returns. It will be driven by meaning. And the smartest capital will go where meaning and money meet at the intersection of taste, trust, and access.

Source: Kotak Top of the Pyramid 2024 report

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