Why India's ultra-rich love family offices

India Today

01-07-2025

India's wealthiest families are reshaping the way they manage money. No longer content with informal advisors or fragmented portfolios, the ultra-rich are increasingly embracing family offices—sophisticated, structured setups designed to navigate complexity, reduce risk, and preserve generational wealth with intent.The shift is both rapid and dramatic. From just 45 in 2018, the number of family offices in India has grown to nearly 300 by 2024. The rise reflects more than growing fortunes. It points to a more deliberate way of managing wealth—one that is professional, globally oriented, and built to outlast founders.advertisementAs Surabhi Marwah, Partner and Co-Leader of Private Tax at EY India, puts it, '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.'FAMILY OFFICES: THE NEW WEALTH COMMAND CENTRES
Modern family offices operate more like private financial institutions. They manage much more than investments—handling succession planning, philanthropic giving, tax structuring, and grooming the next generation of leaders. They consolidate sprawling wealth into a single, well-oiled machine, introducing discipline, governance, and oversight.Family offices typically form at major financial milestones: the sale of a business, a significant inheritance, or a major liquidity event. While there's no official threshold, many in the wealth management space consider US$100 million in investable assets a practical baseline. Until then, multi-family office platforms offer an accessible, resource-efficient alternative.advertisementA recent EY–Julius Baer study identifies key motivations behind these setups: protecting assets, managing growing complexity, separating personal finances from business wealth, and addressing intergenerational needs with clarity.
(Source: EY-Julius Baer study)
Notably, the model is catching on with both legacy families and first-generation entrepreneurs. For the latter—often younger and tech-savvy—family offices offer the flexibility to build personalised investment mandates, maintain privacy, and institutionalise legacy-building from day one.WHY INDIA'S SUPER-RICH LOVE FAMILY OFFICESIndia is undergoing an intergenerational wealth transfer of historic scale—over $1.3 trillion is expected to pass hands in the next decade. Alongside this, a surge in startup exits, IPOs, and private equity windfalls is creating new liquidity, fuelling demand for bespoke wealth management.GIFT City is also amplifying momentum. With relaxed regulations and cross-border ease, it has become an attractive jurisdiction for setting up efficient, global-facing family offices. Outflows under the Liberalised Remittance Scheme (LRS) reached $31.7 billion in 2023–24, up from $18.8 billion in 2019–20.FROM PRESERVATION TO GLOBAL BETSNew-age family offices, especially those serving first-generation entrepreneurs, are allocating significantly to high-growth sectors. Over half of the surveyed offices have put more than 25% of their portfolios into emerging bets, with many going beyond 50%.advertisementYet caution remains. Around 57% still allocate less than 10% to private equity or VC, often citing limited access or risk concerns.TAX FRICTION AND REGULATORY LANDMINESGlobal ambitions come with complex compliance. Domestic tax policy changes and intricate cross-border rules are becoming key operational hurdles. According to the report, 48% of family offices in India cite tax as a primary concern, with 37% naming regulatory complications abroad.To manage this, families are leaning on structures like LLPs, private trusts, and GIFT City-based entities. But the tightrope walk between staying compliant and retaining operational flexibility continues.FIXING SUCCESSION, FORMALLYSuccession planning has long been a sensitive topic among Indian business families. That's changing. Nearly 60% of families now have formal plans through wills or constitutions. Around 19% have adopted structures like trusts or LLPs.Still, many remain unprepared. Families are starting to codify roles, draft shareholder agreements, and institutionalise mentorship for the next generation. Digital vaults and encrypted platforms are increasingly being used to store key legal and financial documents—reducing dependence on oral legacies.advertisementHOW A FAMILY OFFICE TAKES SHAPESetting up a family office involves careful planning—defining intent, identifying legal frameworks, and building the right team. Whether the aim is philanthropy, succession, investment, or a combination, the goals shape whether a single-family or multi-family model fits best.Structures like LLPs, companies, and trusts enable asset protection and tax efficiency. Governance frameworks clarify decision-making authority and responsibilities. An Investment Policy Statement (IPS) aligns capital deployment with risk appetite.
Typically, a family office head manages operations and coordinates with advisors. An investment committee, comprising professionals, family members, or both, drives asset allocation and reviews performance.Family offices also play a hands-on role in risk management, estate planning, administrative support, and philanthropic initiatives. With younger UHNIs entering the fold, these offices are embracing technology, digital security, and thematic investing like ESG.WHAT'S NEXT?The Indian family office is no longer just a sign of affluence. It's becoming a strategic necessity. What started as a tool for preserving wealth is fast turning into a platform for building dynasties, fusing capital with purpose, and governance with ambition.advertisementWith portfolios spreading across continents and generations, and families taking on more risk, regulation, and responsibility, the era of DIY wealth management is firmly behind us. The new-age family office is structured, agile, and built to endure, not just market cycles, but generational shifts.- Ends