Old roots, new routes: The evolving landscape of family offices in India

Family offices in India are evolving into strategic hubs for governance and innovation as wealth transfer is set to exceed INR108 lakh crore.

In brief

• Family office investments are shifting towards private equity and venture capital, reflecting a strong preference for high-growth opportunities in India.
• India’s tax landscape significantly influences family office strategies, with many exploring tax-efficient structures to enhance returns.
• Sophisticated strategies, such as long-short funds, are gaining traction among family offices seeking better risk-adjusted returns.
• The future of family offices is being shaped by a combination of regulatory clarity, digital innovation, and a value-driven investment mindset.

The role of family offices in wealth management

Family offices in India are witnessing a remarkable transformation, evolving to meet the needs of ultra-high-net-worth individuals (UHNIs). As the number of UHNIs is projected to grow significantly—from about 45 family offices in 2018 to nearly 300 by 2024—the landscape of wealth management is changing dramatically. This shift is largely driven by an anticipated intergenerational wealth transfer, expected to reach an astounding INR108 lakh crore over the next decade.

Investment trends among family offices

The modern family office is no longer just a vehicle for investment management; it has become a comprehensive hub for governance, succession planning, and philanthropy. The increasing complexity of wealth management necessitates a more sophisticated approach, with family office investments diversifying into private equity, venture capital, and other alternative assets. 

Investment strategies are becoming more nuanced, with family offices in India allocating significant portions of their portfolios to growth assets. Reports indicate that many family offices are investing over 10% of their assets into private equity and venture capital, with some exceeding 20%. This active approach is essential for navigating the evolving financial landscape and capitalizing on emerging opportunities.

In addition to investment management, the emphasis on structured governance and succession planning is increasing. As wealth is passed down through generations, the need for clear governance frameworks becomes paramount. Many family offices are now focused on preparing next-generation leaders to manage and grow family wealth responsibly and sustainably.

Digital transformation: Family offices

The digital transformation of family offices is another defining trend. The adoption of advanced technology tools has significantly enhanced portfolio tracking, reporting, and operational efficiency. At the same time, the rise of fintech for family offices is enabling seamless integration across accounting, compliance, and client engagement—laying the groundwork for smarter, faster decision-making.

Future outlook for family offices in India

As the ecosystem matures, family office regulations are evolving to provide greater flexibility and clarity. Jurisdictions such as GIFT City are offering a favorable environment for setting up family investment funds, with tax-efficient structures that appeal to both new and legacy wealth holders. This regulatory support is crucial for fostering innovation while maintaining governance standards.

Looking ahead, the future of family offices in India is one of both responsibility and reinvention. There is a growing alignment between investment strategies and the values of younger generations, especially in areas like sustainable and impact investing. This value-led approach is not only socially conscious but also positions family offices to lead in new forms of wealth creation.