Assets managed by mid- and large-sized Indian family offices could rise at a 14 per cent CAGR over three years as wealthy families expand investments across private markets, startups, alternatives and global assets, according to a Julius Baer-EY report.
Assets managed by mid- and large-sized Indian family offices could rise 1.5 times from around Rs 70,000 crore in 2024 over the next three years, as a growing pool of wealthy families increasingly deploys capital beyond traditional investments, according to a report by Julius Baer and EY.
The report, Indian family office playbook: Now, next and beyond, estimates that family-office assets could grow at a compound annual growth rate of 14 per cent over three years. At 1.5 times the 2024 level, that would take the pool to roughly Rs 1.05 lakh crore.
The expansion reflects the rapid growth of private wealth in India, driven by successful IPOs, promoter exits, private equity deals and founder liquidity events, the report said. Family offices that once primarily focused on preserving family wealth are increasingly emerging as active investors across startups, infrastructure, private credit, alternative assets and global markets.
“Family offices have emerged as one of the most transformative forces shaping India’s private capital ecosystem,” Ashwin Patni, head of wealth management solutions at Julius Baer India, said in the report.
The report said the growth in family-office assets represents the convergence of three trends: wealth creation driven by the startup ecosystem and primary markets, a generational shift in how wealth is managed and deployed, and the professionalisation of India’s capital markets.
Family offices turn active investors
More from BusinessThe investment strategy of India’s wealthy families is changing as family offices increasingly seek higher returns, diversification and access to private-market opportunities.
Between 40 per cent and 45 per cent of allocations in many Indian family offices are now directed towards alternative assets, including private equity, venture capital, private credit, Alternative Investment Funds, REITs and InvITs, according to the report. Dedicated allocations of 10 per cent to 20 per cent or more towards private equity and venture capital are also becoming increasingly common.
Family offices are also increasingly investing directly in startups and unlisted growth companies and co-investing alongside private equity and venture capital funds, rather than relying entirely on fund managers.
The report said this marks a shift from the earlier family-office model, which was largely concentrated in domestic equities, fixed income and real estate, with capital often reinvested into the family business.
New-age sectors attract family capital
The next generation of family leaders is also reshaping investment priorities, with growing interest in artificial intelligence, climate technology, renewable energy, energy storage, semiconductors, electronics manufacturing, cloud services and data centres.
The report said family offices are leveraging their operating experience in sectors such as manufacturing, technology and healthcare to invest in adjacent high-growth areas, including those benefiting from the government’s Production-Linked Incentive scheme. Real estate, both in India and global markets, continues to remain an important investment area.
Family offices have also nearly doubled their allocation to private markets, with next-generation family leaders increasingly prioritising AI, clean energy, deep-tech and digital infrastructure, the report said.
Family-office ecosystem expands
The increase in assets is accompanied by a rapid expansion in the number of family offices in India.
Estimates cited in the report suggest their number has increased from around 45 in 2018 to nearly 300 by 2024-25, with the majority operating as single-family offices.
The report also said India now has more than 19,000 ultra-high-net-worth individuals with assets above $30 million, a population that could exceed 25,000 by 2031. The expansion has been fuelled by IPOs, private equity exits and founder liquidity events.
As the size and complexity of family wealth increase, family offices are also becoming more institutionalised, with greater emphasis on governance, professional management, technology and risk oversight.
Kunal Sumaya, Ad Interim Country Head – India and Market Head – Global NRI at Julius Baer, said modern family offices were no longer simply protecting wealth but were becoming “architects of India’s economic future”.
