India’s family office count has surged from 45 in 2018 to over 300 in 2024, with a growing number shifting from traditional investments to global and alternative assets, according to a report released by EY and Julius Baer.

While about a quarter of family offices still focus on wealth preservation via fixed income and domestic stocks, the rest are increasingly seeking global exposure and long-term growth through assets such as real estate, private equity and venture capital.

This rise mirrors the increase in ultra-high net worth individuals (UHNIs) in India, which now number over 13,000 families with assets exceeding $30 million. The number is expected to rise to 19,000 families by 2028, the report said.

Growth assets

Many of these new family offices are run by first-generation entrepreneurs and startup founders seeking globally competitive structures to manage and grow their wealth. “A great transformation is taking place in how Indians are managing and looking to protect as well as grow their capital,” Sameer Gupta, tax leader at EY India.

“This is a period of expansion for family offices but also a period of operations becoming increasingly intricate as the scope of responsibilities becomes wider, going beyond wealth preservation and succession planning to governance, strategic diversification and venture growth,” Gupta said.

Many offices now allocate around 10-20 per cent of their portfolios to private equity and venture funds. They are also embracing new vehicles: use of portfolio-management services (PMS) and Alternative Investment Funds (AIFs) is rising.

High returns

Large offices typically allocate 15-25 per cent of capital to AIFs, of which about 25-30 percent goes into private credit solutions, reflecting a hunt for higher returns. For example, the report cites new sector-focused “yield funds,” which invest in roads, power lines and renewables as emerging options for steady income.

“Growth assets are a clear priority, with many family offices allocating significantly to them,” said Umang Papneja, CEO of Julius Baer India. “Succession strategies are becoming more nuanced, and the complexity of investing is driving greater demand for professional advice and tailored structures,” Papneja said.

Global diversification

Family offices are increasingly collaborating with international partners and leveraging digital platforms and global networks to widen their investment reach. The report forecasts that GIFT City will draw more family offices as its regulatory framework evolves.

Cross-border investments, long popular among larger family offices, are now increasingly being facilitated via GIFT City-based AIFs, as they offer tax efficiency and regulatory clarity.

Alongside investing, succession and governance structures are also gaining prominence. Nearly 60 percent of family offices surveyed had formal wills or family agreements, while others are exploring private trusts, family constitutions, and cross-border planning.

Published on June 26, 2025