Indian Family Office Assets Projected to Grow 1.5 Times in Three Years, Says Julius Baer-EY Report

Assets managed by Indian family offices are projected to grow 1.5 times over the next three years, driven by rising wealth and a transition toward more active investment strategies, according to a recent report by Julius Baer and EY.

Titled Indian Family Office Playbook: Now, Next and Beyond, the report estimates that Indian family offices managed approximately ₹70,000 crore in assets in 2024. This asset pool is projected to expand at a compound annual growth rate (CAGR) of 14 percent over the three-year period. This growth is accompanied by a significant shift in asset allocation strategies.

The report indicates that around 40 to 45 percent of allocations in many family offices are currently directed toward alternative assets. These include private equity, venture capital, private credit, Alternative Investment Funds (AIFs), REITs, and InvITs. Additionally, family offices are increasingly engaging in direct investments and co-investments, targeting emerging sectors such as artificial intelligence, climate technology, renewable energy, semiconductors, electronics manufacturing, cloud services, and data centres.

Surabhi Marwah, Tax Partner and Leader for Family Office Advisory Services at EY India, noted that Indian family offices are evolving from wealth preservation vehicles into active allocators of long-term capital. She stated that rising wealth creation is encouraging families to invest in private markets and innovation-led sectors, while also increasing emphasis on governance, succession planning, and professional management.

The study highlights that India currently has over 19,000 ultra-high-net-worth individuals (UHNIs), a figure expected to exceed 25,000 by 2031. Furthermore, an estimated US$1.3 trillion to US$1.5 trillion in wealth is projected to transfer between generations over the next decade. This generational shift increases the requirement for structured governance and succession frameworks.

Consequently, family offices are moving away from founder-led and informal structures toward professionally managed institutions. This transition involves greater utilization of investment committees, family councils, specialized professionals, and formal decision-making processes.

Technology adoption is also expanding, with family offices integrating AI-enabled analytics, digital workflows, and cybersecurity tools. However, the report clarifies that AI is best utilized in the near term for administrative functions like data extraction, compliance, and due diligence, rather than replacing human investment judgment.

Looking ahead, the report anticipates that family offices will play an expanded role in long-term capital formation, entrepreneurship, and strategic investing as their portfolios and governance models continue to institutionalize.

"The projected 1.5 times growth in Indian family office assets over the next three years highlights a structural maturation in how domestic private wealth is deployed. With 40 to 45 percent of allocations moving into alternative assets like private equity, venture capital, and private credit, family offices are cementing their position as vital providers of long-term capital for the Indian economy. As wealth transitions across generations, the shift toward professional management, structured governance, and emerging technology sectors will create deeper stability and strategic backing for the startup and enterprise ecosystem." — Dr. Shishir Gupta, Founder & CEO, StartupLanes