Shifting Focus: Indian Family Offices Embracing Growth and Global Investments
Investments in traditional methods decrease as Indian family offices broaden their portfolios, with 48% citing altered tax legislation as a significant obstacle.
Family offices in India are ditching traditional investments and venturing into uncharted territories. According to a recent report by EY and Julius Baer, these offices are increasingly exploring global markets and alternative assets like real estate, private equity, and venture capital. This transformation is depicted in the report titled, "The Indian Family Office Playbook".
Amidst this transition, it's clear that these Indian families are no longer solely focused on safeguarding their wealth. Instead, they're working towards enhancing efficiency, implementing clearer governance, and tapping into international investment opportunities. Dealing with complex tax laws and cross-border regulations has become an integral part of their operations.
Booming Family Offices and Increasing Global Ambitions
The explosive growth of family offices in India is quite evident. In 2018, there were just 45 family offices, but by 2025, their number has skyrocketed to over 300. Fueled by cross-border presence, ultra-high-net-worth individuals (UHNIs) are making use of tools like the Liberalised Remittance Scheme (LRS), with overseas remittances surging from $18.8 billion in 2019-20 to a projected $31.7 billion by 2023-24.
Surabhi Marwah, the Co-leader of Private Tax and a partner at EY India, affirms that Indian family offices are experiencing a significant transformation. Money preservation is no longer their primary focus. These families are now aiming for more structure, better governance, and international investment avenues.
While a quarter of these offices still concentrate on wealth preservation, a growing number are actively diversifying for long-term growth and global exposure.
Sluggish Adoption of Private Markets
Despite the rising interest in alternative assets, the utilization of private markets like venture capital and private equity remains slow. The report reveals that 57% of Indian family offices invest less than 10% of their portfolios in these areas, primarily due to limited access and a cautious mindset.
Planning for the Future and Legacy Management
The report also points to a growing emphasis on legacy planning and governance. Currently, approximately 59% of families have established wills or family constitutions. Around 19% have opted for formal structures like trusts or limited liability partnerships (LLPs) to manage their wealth effectively.
As Indian family offices grow and mature, their focus expands beyond keeping wealth safe – they're now focused on growing it wisely and establishing a lasting legacy. This sector is evolving at a rapid pace, becoming more global, structured, and future-focused.
The report also highlights that the family offices are gravitating towards rules and regulations. Around 48% of the individuals surveyed cited changing tax laws as a major challenge, while 37% struggled with cross-border regulations. Furthermore, family offices are increasingly catering to first-generation entrepreneurs, who are more inclined to take risks and invest in emerging sectors.
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[2] IndiaSpenddata.com https://www.indiaspend.com/india-policy/investment-patterns-of-indian-family-offices-show-important-trends-revealing-pursuit-of-long-term-growth Indian Family Offices: Trends and Insights
[3] YourStory.com https://yourstory.com/p/indian-family-offices-growing-global-resources Indian Family Offices: Navigating the Growth Trajectory
[4] The Economic Times GIFT City https://economictimes.indiatimes.com/wealth/gift-city-a-financial-park-for-india/articleshow/26153084.cms GIFT City: A Financial City for India
[5] Mergermarket https://www.mergermarket.com/research/india-private-equity-first-half-2025-deals-drought Indian Private Equity: First Half 2025 Deals Drought
- Family offices in India are shifting their focus from traditional investments and are increasingly exploring global markets, alternative assets like real estate, private equity, and venture capital.
- The transition in Indian family offices involves not only safeguarding wealth but also enhancing efficiency, implementing clearer governance, and tapping into international investment opportunities.
- These offices are actively diversifying their portfolios for long-term growth and global exposure, with a growing number investing in private markets like venture capital and private equity, albeit hesitantly due to limited access and a cautious mindset.
- As family offices mature, they are placing more emphasis on legacy planning, governance, and compliance with rules and regulations, particularly in dealing with complex tax laws and cross-border regulations.
