Rich Indians are increasingly utilising family offices to manage their wealth with assets from such vehicle projected to see significant growth in the coming three years, according to a report by Julius Baer and EY.
Assets under management (AUM) among Indian family offices are estimated to total INR 70,000 crore (USD 7.3 billion) in 2024 and are projected to grow 1.5 times in the next three years, according to a report produced by Julius Baer and EY entitled Indian Family Office Playbook: Now, Next and Beyond.
The report highlights growth drivers, including expanding wealth pools, increasingly sophisticated investment strategies, and the growing role of family offices as long-term providers of capital.
Increased allocations to alternatives
On investment strategies, the report said that Indian family offices are seeing a shift towards alternatives with allocations of 40-45% in the asset class across private equity, venture capital, private credit, alternative investment funds (AIF), real estate investment trusts (REIT), and infrastructure investment trusts (InvIT).
Technology is also playing a key role with increased adoption of AI-enabled analytics, integrated reporting platforms, cybersecurity, and digital governance tools to improve visibility, governance, and investment decision-making. There is also demand for professional management structures, specialized talent, and stronger governance frameworks to address issues linked to growth in cross-border investments, such as rising regulatory, data privacy, and transparency requirements.
India is currently home to 19,000 ultra-high net worth individuals and this population is expected to exceed 25,000 by 2031. USD1.3 trillion to USD 1.5 trillion of wealth is estimated to be transferred to the next generation in the coming decade.
“As India prepares for one of the most significant intergenerational wealth transfers in its history, the families that embrace this moment to build institutional discipline, strengthen governance, invest in technology and talent, and take a long-term approach to managing wealth will not only preserve their legacies, but emerge as architects of India’s economic future,” commented Kunal Sumaya, ad interim country head – India & market head – global NRI, Julius Baer.
