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India Today
01-07-2025
- Business
- India Today
Why India's ultra-rich love family offices
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 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 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 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 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 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 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– 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 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 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 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 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 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 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 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 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 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
India Today
27-06-2025
- Business
- India Today
Where are India's ultra-rich families investing in 2025?
India's ultra-wealthy aren't just sitting on their fortunes anymore. In 2025, they're stepping out, investing boldly, and thinking globally. A new EY–Julius Baer report, The Indian Family Office Playbook, reveals that many family offices are moving away from traditional wealth preservation and diving into global markets, private credit, and real offices, typically set up by high-net-worth individuals (HNIs) or ultra-high-net-worth individuals (UHNWIs), help manage everything from global investing and succession to philanthropy and is now home to over 300 family offices—up from just 45 in 2018. And while 25% of them still put capital preservation front and centre, the big picture is clear: diversification is in, and legacy-building is taking centre stage. 'Families now seek efficiency, transparency, and global access—all of which require a more structured approach,' said Surabhi Marwah, Co-leader of Private Tax and Partner at EY India. 'The Indian family office ecosystem is at an inflection point where wealth preservation alone is no longer enough.'So what does this new playbook look like? For starters, family offices are investing across borders, with interest rising in global equities, private equity, venture capital, and real estate. Private credit—once a niche space—is quickly gaining popularity for its steady returns and built-in downside protection. And this global hunger is backed by numbers: under the Liberalised Remittance Scheme, outbound flows jumped from $18.8 billion in 2019–20 to $31.7 billion in 2023– it's not just about chasing returns. Global investing brings its own headaches. The report shows 48% of family offices are worried about shifting tax laws, and 37% are grappling with cross-border rules. These concerns are shaping strategy just as much as the returns themselves.'Family offices are increasingly catering to first-generation entrepreneurs who are more risk-tolerant and open to emerging sectors,' said Umang Papneja, CEO of Julius Baer India. 'As the scale and complexity of wealth grow, there's a stronger focus on strengthening governance, growing asset value and planning for legacy succession.'Interestingly, despite the enthusiasm for alternatives, private markets are still approached with caution. About 57% of family offices allocate less than 10% of their portfolios to private equity or venture capital, often due to limited access or a conservative big area of focus is governance and succession. While 59% of families have created wills or constitutions, only 19% have adopted formal structures like private trusts or LLPs. That leaves many still flying blind when it comes to long-term continuity.'Preserving and enhancing generational wealth lies at the heart of every family office,' said KT Chandy, Partner and Co-leader of Private Tax at EY India. 'In the process, they enable seamless succession through structures like private trusts, aligned shareholder agreements, and defined governance roles.'advertisementLooking ahead, family offices in India are expected to double down on global diversification, formal governance, and smarter portfolio tools. GIFT City is fast becoming a favourite for cross-border structuring and tax efficiency. ESG investing is also on the rise, aligning with the values of next-generation wealth big takeaway is that India's family offices are no longer just quiet keepers of wealth. They're becoming agile, global institutions—built not just for returns, but for long-term impact.- Ends
Time of India
26-06-2025
- Business
- Time of India
India's ultra rich are diversifying wealth with private equity, AIFs and global bets
India's ultra-wealthy families are moving beyond wealth preservation to embrace riskier, more diversified investment strategies, with a growing preference for global markets and alternative asset classes, according to the EY–Julius Baer report titled The Indian Family Office Playbook, released Thursday. The report captures a structural shift underway in India's family office ecosystem, which has grown from just 45 family offices in 2018 to more than 300 today. While 25% of these offices still prioritise capital preservation, a growing number are now allocating capital across private equity, venture capital, global real estate, and other non-traditional assets. 'India's family office ecosystem is at an inflection point where wealth preservation alone is no longer enough,' said Surabhi Marwah, Co-leader, Private Tax and Partner, People Advisory Services – Tax at EY India. 'Families now seek efficiency, transparency, and global access, all of which require a more structured approach. At the same time, navigating tax and cross-border regulatory frameworks is becoming central to how these offices function and plan ahead.' Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Here's The Average Price of a 6-Hour Gutter Upgrade in Austin Read More Undo From preservation to performance Many of these family offices, especially those catering to first-generation entrepreneurs, are led by younger wealth owners with higher risk tolerance and deeper sector expertise. The report notes that more than half of the surveyed family offices have allocated over 50% of their portfolios to growth-oriented assets, with over a quarter allocating more than 20% to private equity and venture capital alone. Live Events While traditional allocations to public equities, bonds, and cash remain part of core strategies, they are increasingly being complemented by exposure to portfolio management services (PMS), alternative investment funds (AIFs), private credit, REITs, InvITs, and even art. India's alternative investment industry, comprising PMS and AIFs, is on track to exceed ₹100 lakh crore in assets under management by 2030, the report estimates. Recent regulatory and tax changes are making this space more attractive: SEBI has eased investment norms for Category II AIFs, and the 2025 Union Budget clarified that the sale of securities by AIFs would be taxed as capital gains, reducing compliance burdens. Global reach, local strength Indian family offices are also rapidly globalising, driven by both necessity and opportunity. With Liberalised Remittance Scheme (LRS) outflows rising from $18.8 billion in 2019–20 to $31.7 billion in 2023–24, Indian UHNIs are increasingly investing across borders—in private equity funds in the U.S., real estate in Europe, and venture capital across Asia. Cross-border partnerships are becoming more common as family offices collaborate with global peers to gain access to a broader range of opportunities and diversify risk. At the same time, India's own regulatory ecosystem is evolving to support this ambition, with GIFT City emerging as a preferred base for family office operations seeking international exposure and tax efficiency. 'The era of one-size-fits-all investment is over,' the report states. 'Sophisticated, tailored wealth strategies are becoming essential, particularly for younger, tech-savvy founders as well as legacy industrial families navigating succession and sustainability.' Structuring for complexity Alongside asset diversification, Indian family offices are investing in governance, succession planning, and institutionalisation. According to the study, 59% of families have implemented wills or constitutions, and 19% have set up structures like trusts or LLPs. This reflects a growing awareness of the importance of structured transitions in preserving legacy and continuity. There's also growing interest in impact investing—not just as a tool for philanthropy, but to align capital with long-term values and sustainability goals. In this context, family offices are increasingly engaging professional advisors and leveraging digital platforms to manage complexity. As wealth spreads across geographies and generations, families are are navigating agile, compliant, and transparent structures that can respond to global risks and opportunities alike.
