Why family offices in India are booming: EY-Julius Baer reveals key drivers of 2024 surge

The number of family offices in India has climbed dramatically to around 300 in 2024, up from just 45 in 2018. This marks a major transformation in how ultra-high-net-worth (UHNW) families in the country are managing their financial assets, according to a recent EY-Julius Baer report.

Titled the "Indian Family Office Playbook", the study explains how these entities have progressed well beyond their original focus on estate planning and safeguarding wealth. They are now functioning as dynamic investment vehicles with exposure to diverse sectors and global markets.

This development is linked to a surge in liquidity events in the nation's economy, such as IPOs and private equity exits, alongside a sharp increase in the number of Indian families with a net worth exceeding $30 million—a number projected to hit 19,000 by 2028.

“As more families formalise their wealth structures, the role of the family office is expanding, from investment and governance to succession, sustainability and globalisation,” the report stated.

New investment strategies and risk appetite fuel expansion in family offices in India

While traditional assets like public stocks and bonds continue to play a role, family offices in India are now funnelling significant resources into alternative investments. These include private equity, venture capital, real estate investment trusts (REITs), infrastructure investment trusts (InvITs), and private credit. According to the study, the shift is primarily led by first-generation wealth creators and families willing to embrace greater investment risk for long-term gains.

This growing sophistication is also reflected in how families are handling intergenerational wealth transfers. Governance frameworks and structured succession plans are becoming central to operations. The report observed a rising use of legal instruments such as wills and trusts, which are helping prevent disputes and ensure a smooth transition of wealth and responsibilities.

“Family offices have become hubs for managing complexity, aligning financial, legal and philanthropic interests across generations,” the report stated. “With rising globalisation, digitalisation and evolving regulations, their role will only deepen as India emerges as a critical node in the global investment landscape.”

Additionally, the study highlights Gift City as an increasingly popular location for managing global investments. With regulatory and tax advantages, the international financial services hub is enabling Indian families to access overseas markets efficiently.

As wealth transitions from founder-led to multigenerational control, the trend towards more institutional, professionally managed family offices in India is likely to accelerate. This evolution marks a new chapter in the country’s wealth management story.