New Delhi: India’s wealthiest families are changing the way they manage their money. Gone are the days of informal advisors and scattered investments. Today, the ultra-rich are turning to family offices—professional, structured setups that handle wealth with care, strategy, and long-term vision.
The trend is growing fast. In 2018, India had only 45 family offices. By 2024, that number has jumped to nearly 300. This rise reflects a clear shift from casual to corporate-style wealth management.
What Are Family Offices?
Family offices are private organizations that manage the finances and affairs of wealthy families. They don’t just handle investments. They take care of succession planning, taxes, philanthropy, estate management, and even grooming the next generation.
As Surabhi Marwah, Partner at EY India, explains, “Families now seek efficiency, transparency, and global access. A structured setup like a family office makes that possible.”
When and Why Families Set Them Up
Family offices often form after a major financial event—like selling a company, receiving an inheritance, or getting a big payout from a startup or IPO. While there’s no fixed rule, experts say families usually need at least $100 million in investable assets to run a single-family office. Others may use multi-family offices to share resources.
An EY–Julius Baer report says the top reasons for setting up these offices include:
Protecting wealth
Managing growing complexity
Separating personal and business finances
Planning for future generations
First-Gen Entrepreneurs Are Leading the Way
It’s not just old-money families embracing this model. Young, first-generation entrepreneurs are joining in too. Many of them prefer the privacy, control, and flexibility that family offices offer.
With India set to see a $1.3 trillion intergenerational wealth transfer in the next decade, the demand is only growing.
GIFT City Adds More Fuel
India’s GIFT City is becoming a hot spot for setting up family offices. With relaxed rules and better global access, it offers a modern, tax-efficient base for Indian billionaires. In fact, overseas outflows under India’s Liberalised Remittance Scheme (LRS) rose to $31.7 billion in 2023–24, nearly doubling in four years.
Investment Trends: Balancing Growth and Caution
Family offices today are investing smartly. Over half of them are putting more than 25% of their money into high-growth sectors, including startups and new technologies.
Still, they are careful. About 57% keep private equity exposure below 10%, mainly due to risk and access concerns.
Tax and Legal Hurdles
Managing global wealth brings legal challenges. Taxation and regulation are key worries for Indian family offices.
To manage this, families use tools like:
LLPs (Limited Liability Partnerships)
Private Trusts
GIFT City entities
HUF (Hindu Undivided Family) structures
These help protect assets, reduce tax burdens, and plan inheritance cleanly.
Succession Planning: No Longer a Taboo
Succession used to be a sensitive subject. Not anymore. Nearly 60% of wealthy families now have formal plans—through wills, trusts, or family constitutions. Trusts are especially popular as they allow clear rules across generations.
Many families also set up offshore trusts or SPVs to manage foreign assets while staying compliant with Indian laws like FATCA and CRS.
How a Family Office Works
Setting up a family office takes planning. The process includes:
Defining the family’s goals
Choosing the right legal setup (LLP, Trust, Company)
Creating an Investment Policy Statement (IPS)
Forming a governance framework
Most offices have a dedicated head of family office, supported by advisors. An investment committee—often a mix of professionals and family members—guides decisions.
These offices also take care of admin work, risk checks, tax filings, and donations. With younger billionaires coming in, technology, cybersecurity, and ESG investing are gaining focus.
What Lies Ahead
Family offices in India are no longer just for preserving wealth. They are now seen as engines for building dynasties. As fortunes grow and families become more global, these offices are helping manage not just money—but vision, values, and legacy.
The age of DIY wealth management is over. The new family office is professional, agile, and built to last across generations.
