Key Takeaways
- • Indian family office assets managed around Rs 70,000 crore in 2024 are projected to grow 1.5x over three years, implying a 14% compound annual growth rate, according to a Julius Baer-EY report.
- • Around 40-45% of allocations in many Indian family offices are now directed toward alternatives, including private equity, venture capital, private credit, AIFs, REITs and InvITs.
- • Family offices are increasingly making direct investments and co-investments in AI, climate technology, renewable energy, semiconductors, electronics manufacturing, cloud services and data centres.
- • India has more than 19,000 UHNIs, a number expected to exceed 25,000 by 2031, while an estimated US$1.3-1.5 trillion of wealth is set to transfer between generations over the next decade.
- • Governance is professionalising, with family offices adopting investment committees, family councils, formal decision-making and AI tools that the report says are best used for data extraction, compliance and due diligence rather than investment judgement.
Summary
Assets managed by Indian family offices are projected to grow 1.5 times over the next three years, driven by rising wealth and a shift toward more active investment strategies, according to a report by Julius Baer and EY titled "Indian Family Office Playbook: Now, Next and Beyond." The report estimates that Indian family offices managed around Rs 70,000 crore in 2024, with the pool expected to grow at a 14% compound annual growth rate over the period.
The report identifies a significant change in how family wealth is deployed. Roughly 40-45% of allocations in many family offices are now directed to alternative assets, including private equity, venture capital, private credit, Alternative Investment Funds, REITs and InvITs. Family offices are also increasingly pursuing direct investments and co-investments, focusing on artificial intelligence, climate technology, renewable energy, semiconductors, electronics manufacturing, cloud services and data centres.
Surabhi Marwah, Tax Partner and Leader of Family Office Advisory Services at EY India, said Indian family offices are "evolving from wealth preservation vehicles into active allocators of long-term capital." She noted that rising wealth creation is encouraging families to invest in private markets and innovation-led sectors, while also increasing focus on governance, succession planning and professional management.
The report cites India's more than 19,000 ultra-high-net-worth individuals, a figure expected to exceed 25,000 by 2031. It also estimates that US$1.3-1.5 trillion of wealth will be transferred between generations over the next decade, increasing the need for stronger governance and succession frameworks. Family offices are consequently moving from founder-led and informal structures toward professionally managed institutions, using investment committees, family councils, specialised professionals and formal decision-making processes.
On technology, the report expects family offices to adopt AI-enabled analytics, integrated reporting, digital workflows and cybersecurity tools. It cautions that AI is best deployed in the near term to support data extraction, compliance and due diligence rather than replace human investment judgement. Looking ahead, the report expects family offices to play a larger role in long-term capital formation, entrepreneurship and strategic investing as their portfolios and governance become more institutionalised.
The report identifies a significant change in how family wealth is deployed. Roughly 40-45% of allocations in many family offices are now directed to alternative assets, including private equity, venture capital, private credit, Alternative Investment Funds, REITs and InvITs. Family offices are also increasingly pursuing direct investments and co-investments, focusing on artificial intelligence, climate technology, renewable energy, semiconductors, electronics manufacturing, cloud services and data centres.
Surabhi Marwah, Tax Partner and Leader of Family Office Advisory Services at EY India, said Indian family offices are "evolving from wealth preservation vehicles into active allocators of long-term capital." She noted that rising wealth creation is encouraging families to invest in private markets and innovation-led sectors, while also increasing focus on governance, succession planning and professional management.
The report cites India's more than 19,000 ultra-high-net-worth individuals, a figure expected to exceed 25,000 by 2031. It also estimates that US$1.3-1.5 trillion of wealth will be transferred between generations over the next decade, increasing the need for stronger governance and succession frameworks. Family offices are consequently moving from founder-led and informal structures toward professionally managed institutions, using investment committees, family councils, specialised professionals and formal decision-making processes.
On technology, the report expects family offices to adopt AI-enabled analytics, integrated reporting, digital workflows and cybersecurity tools. It cautions that AI is best deployed in the near term to support data extraction, compliance and due diligence rather than replace human investment judgement. Looking ahead, the report expects family offices to play a larger role in long-term capital formation, entrepreneurship and strategic investing as their portfolios and governance become more institutionalised.
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