New Delhi [India] June 26 (ANI): While 25 per cent of Indian family offices continue to prioritise wealth preservation, many are now actively diversifying into global and alternative assets, highlights the recently launched EY-Julius Baer report, The Indian family office playbook.
The report highlights a transformative shift in how India’s ultra-high-net-worth families are diversifying and managing their wealth to grow and govern.
Family offices are private wealth management advisory firms that cater to the needs of ultra-high-net-worth individuals and families.
The report underscores that while preserving wealth remains foundational, families are actively diversifying beyond traditional assets. Allocations are increasingly moving into global equities, real estate, private equity, venture capital, and other alternatives.
With over 300 family offices now operating in India, up from just 45 in 2018, the ecosystem is becoming more structured, globally focused, and purpose-driven.
Family offices are going global as UHNIs are expanding across borders, with Liberalised Remittance Scheme (LRS), remittances have risen from USD 18.8 billion in 2019-20 to USD 31.7 billion in 2023-24.
As the number of UHNWIs increases, many first-generation and risk-tolerant entrepreneurs are investing in innovative sectors through family offices.
Private credit, though still a small segment, is emerging as a key asset class, with family offices increasingly embracing it for its stable returns, downside protection, and diversification benefits.
Umang Papneja, CEO, Julius Baer India, said, “Family offices are increasingly catering to first-generation entrepreneurs who are more risk-tolerant and open to emerging sectors. As the scale and complexity of wealth grow, there’s a stronger focus on strengthening governance, growing asset value and planning for legacy succession.”
Surabhi Marwah, Co-leader, Private Tax and Partner, People Advisory Services – Tax, EY India, added, “The Indian family office ecosystem is at an inflection point where wealth preservation alone is no longer enough. Families now seek efficiency, transparency, and global access, all of which require a more structured approach. At the same time, navigating tax and cross-border regulatory frameworks is becoming central to how these offices function and plan ahead.”
According to the report, private markets are yet to see wider adoption among family offices. About 57 per cent of family offices allocate less than 10 per cent of their portfolios to private equity or venture capital, often citing limited access or a cautious approach.
Regulatory matters are gaining attention among family offices, the report further cites. Changing tax laws were flagged by 48 per cent of respondents, while 37 per cent cited cross-border complexities.
The report notes a growing focus on formalising governance and succession planning among family offices. While 59% of families have put wills or constitutions in place, and 19% have adopted structures like trusts or LLPs, a significant number still lack a comprehensive succession plan – highlighting the need for greater preparedness.
Key trends include rising cross-border investments, growing use of GIFT City, increased interest in ESG, and hybrid family office models that blend in-house teams with external experts for greater agility, the report added. (ANI)
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