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How India’s family offices are evolving into long-term wealth institutions
Listen to our latest conversation on how Indian family offices are transitioning from informal wealth management structures to professionally governed institutions focused on preservation, growth and intergenerational continuity.
In this episode of Family Offices in India, we are joined by Umang Papneja, CEO, Julius Baer India and Shagun Baid Jain, Co-founder, Baid Tech Ventures, to discuss how Indian family offices are navigating a period of significant transition driven by intergenerational wealth transfer, expanding asset classes and increasing regulatory expectations. The conversation reflects on how next-generation leaders are redefining priorities from returns-led investing to governance-first focus while building resilient, future-ready structures.
They highlight the importance of governance frameworks, disciplined asset allocation and institutional processes becoming central to family office success. The conversation also examines how family offices are gradually diversifying into private equity, venture capital and private credit, balancing opportunity with risk, and leveraging domestic and global structures such as GIFT City to support long-term objectives.
Key takeaways
Indian family offices are shifting from opportunistic investing to structured, institution-like governance models.
Strong governance frameworks help decision-making and enable continuity across generations.
Asset allocation is expanding into alternatives, with cautious but growing exposure to private markets.
The next generation is accelerating change through greater comfort with diversification and professional advisory models.
Hybrid operating models with lean in-house teams supported by external specialists are emerging as the preferred approach.
Preparing early for evolving regulatory and disclosure expectations is strengthening long-term resilience.
The future of family offices is not just about returns it is about readiness, responsibility and long-term stewardship.
Surabhi Marwah
Partner, Family Office Advisory Services, EY India
For your convenience, a full text transcript of this podcast is available on the link below:
Surabhi
Ever wondered how family offices really work? It may sound like all balance sheets and tax codes, but the interesting stuff is the family dynamics, the people and the emotions behind it. I am Surabhi Marwah, Partner, Family Office Advisory Services, EY India and I co-lead private client services. Today's podcast is all about the interesting stuff about family offices.
Just think about it. In India, family businesses have always been a part of our DNA. What is new, is the way wealth is being managed and how and who manage wealth. From just 45 family offices in 2018 to more than 300 today, we have seen a huge shift. Families are not content with just preserving wealth. They are diversifying and like how? They are into private credit, private equity, venture capital and they are writing constitutions. They are making trusts. They are looking at interesting strategies. They are looking at next gen coming in. They are looking at women coming in, women who are very bright and really know how to multitask as well. The recent Indian Family Office Playbook, a joint playbook by EY and Julius Baer, shows us some fascinating trends, tax laws and cross border rules that keep everyone on their toes. Governance and succession are big ones and we also have people thinking about diversification.
Not only that, there is also the whole challenge of the human side, the emotions. I talked about the fresh perspectives, the talent that is coming in and today's podcast is all about discussing some of these aspects - tax codes, various ways of investing, family dynamics, and the people and talent that are coming in.
Who better to join me today than Umang Papneja, CEO of Julius Baer India. He has a bird's eye view of all global families and their journeys. He has decades of experience into family businesses, governance and legacy planning. We also have Shagun Baid Jain, Co-founder, Baid Tech Ventures joining us today. She is the co-founder of Baid Tech Ventures, and she is going to talk about her personal experience of setting up and managing her own family office. She is a warehouse of talent and has a lot of experience. She is going to be talk about two important aspects –navigating her own family office and how she used trust and credibility to make a difference for herself. She is going to inspire a lot of young women who are watching this podcast.
Shagun
It is important to recognize how hard your parents have worked to create wealth, and how you are the custodian of wealth for the next generation. Challenges like that were the hardest to tackle, but I had six months of headway. It was preparation, anticipation and keeping your head down, working hard, recognizing that there are things that you do not know. It is okay to ask questions and be a perpetual student. Find people you can trust. You have to be okay to say no to opportunities you do not have to do anything just because of FOMO (fear of missing out). Do things only when you understand them. I cannot emphasize this enough but have a team of people that you can trust whilst working and building your own skill set to stay ahead of the curve.
Surabhi
Did you put your hand up for this role, or did your parents say that you were ready?
Shagun
My parents said I should do it. They threw me into the deep end and said I have these many months to learn. They saw the rigor that I had put in. They knew how hard I had worked at our software enterprise and my education. All of that had led to this moment, and it has been the most wonderful and challenging role I have taken up so far.
Surabhi
You told me you interned at EY and some of the other Big 4s and then worked at McKinsey. And you have a MBA degree. So, the moot point is that you trained for it as well.
Shagun
There is no substitute for hard work. You have to do every single thing. When I started working at my software enterprise, I started from the very basic functions. I have done cold calling, cold emailing, and followed people into meetings. From thereon, when I built on the credibility and performance, that is when I got more opportunities. I earned it.
Umang
Let me first delve into history and just go back a few years and then talk about how investment habits and climate have changed. Traditionally, India has been much into real estate and fixed income. There have always been gold and equities as well, but traditionally Indians have invested more in real estate. Still, out of around US$15 trillion of our savings as a country, around 50% of that is in realty. The Alternative Investment Fund (AIF) regulations came around 2012 and since then, newer ideas, newer asset classes, whether it is private credit, venture capital, private equity –all those started to emerge.
Commitments of around US$100 billion have been made so far, which is a great start for the first decade of this regulation change, but if we compare US$100 billion to US$15 trillion, these are just baby steps.
Let us look at what is happening now. We have completed more than a decade of this regime, which means we can access track records of the first few funds that came out. Whoever invested then have seen results. Some of them might not have seen good results, but some of them would have seen much better results than what we anticipated. They have learned a lot. People also went slow because of due-diligence complexities. For instance, if you are getting into a venture capital company, you want to get into a better due-diligence position; late-stage private equity needs a different type of due diligence. The industry and even the investors were not ready for this. That is significantly changing with a lot of experts coming in.
Most importantly, there is an inter-generational transfer of wealth of more than US$1 trillion expected in the next few years in India. Also, the next generation understands alternates better than the previous generation, which is going to drive the next phase of growth.
Surabhi
Since there is an absolute or expected change from the traditional, when you are looking to change strategies or when you talk to your next team, what is the kind of change you see in them when they are talking to clients?
Umang
Just like the clients, the people who started in this industry in the late 1990s also did not have exposure. So, it was very important that we had a lot of training, workshops, and gave them the required exposure. The industry has done quite well. Not only Julius Baer, everybody. The newer flock in the industry understands this better. We are seeing track records coming out and the emergence of new asset classes within the alternatives space—private credit, venture capital—also real assets like infrastructure, warehousing, and commercial real estate.
Better understanding is emerging both from the clients’ end as well as our industry of advisors. There are certifications and courses available. I would not say the industry is not prepared anymore; people understand this much better than a decade ago.
Surabhi
Shagun, you told me that you really enjoyed working with JB because they were the first set of people who did not tell you to “ask your dad”; they said you know the answers. That is great, and that is where we want to get with many young women like yourself. But family dynamics can be tricky. You need to balance the need for structure and maintain harmony. You may have to take tough calls that may not align with others, but because you are in charge, you have to take them without rocking the boat. How have you managed it?
Shagun
When you are working in the family business, you are operationally involved and treat everything as an institution. You go by the governance structures that are in place. You have to do the same with your family office – put a governing policy mandate in place. Wear the hat of the CEO whose first interest is managing wealth for the next generation. Women inherently do a better job at understanding the securities, the insecurities, the financial and emotional aspects of all family members. Put together a mandate that takes care of all those things. From my family business experience, it is important to have a very flat hierarchy, encourage transparent and open communication. Any deviation from the policy mandate needs to be looked at from the lens of the family organization first, then individual members. Once embedded in your DNA, do not rock the boat. Refer to the governance structure and things start falling in place. The key is to get your structure right, ensure it is transparent and balanced. When you come to tricky situations, you always have the structure to fall back on; it takes away conflict and ambiguity and gives you a structure.
Surabhi
You have to take the emotions out of investing, make it disciplined and structured, while preparing for unplanned contingencies—keep a little buffer. Umang, back to you. You have seen different models of family offices globally. We do not have the concept of a family office in our tax code, but many countries do. Structures are laid out now. Indian family offices are changing how they structure them—GIFT City, Singapore, Dubai, and hybrid setups. What are you seeing of late?
Umang
First, the basic definition—anybody above US$100 million wants to go solo, a single‑family office. For the ones below US$100 million, a few families come together, akin to a multi‑family office without naming it – a pool that invests. In corporate structuring, LLPs, trust structures—trusts provide asset protection—and the plain vanilla corporate structure.
With GIFT City coming in, the requirement for global allocations has increased dramatically. The GIFT City rules allow around 50% of net worth for corporates, LLPs, and partnerships to be sent via the overseas portfolio investment route to GIFT City funds. Families are much more aware of regulations and, based on their constitutions, are creating structures that facilitate what they want to do. We also see sharing of information within families, using tax consultants and others, and sharing costs. While we do not yet have a regulator‑defined “family office,” it is emerging well; I am sure regulations will define them at some stage.
Surabhi
Many years ago, we were all part of the wealth industry in some form, but “family office” became very popular only a few years ago. Earlier, people managed and invested large amounts, and then “family office” suddenly became the mantra. Why did that happen—Western influence, or structures?
Umang
Most importantly, the huge FDI boom in the 2010s till today. People observed that Indians sold businesses and came to invest only, which is partly true, but India is a land of opportunities and budding entrepreneurs. The entrepreneurial spirit will not die. Starting 2010, we saw many liquidation events; structures were formed—now we call it family offices—and the number has gone to 300 and rising. The turning point happened in the early 2010s.
Surabhi
Shagun, why did you set up the family office when you could have invested on your own?
Shagun
The structure to transfer wealth to the next generation is more formulated, it is institutionalized and not on an individual's whim and fancy. There is a set of guiding rules and principles. You run it like an organization. You do not run it based on waking up and buying something. You have done due diligence before investing. You are more cognizant of consequences. You work harder when you know it is not just for you; it is something greater than you. Then you build the right teams, study, and have the right advisors.
Umang
What struck me when I first met her the first time was that it was clear in her mind, as with many in the next generation: “I am a custodian of this wealth for the next generation.” Imagine a 20‑year‑old saying this, the vision is remarkable. Many in the next gen realize the responsibility.
Surabhi
In your view, what should family offices and office heads prepare for, what worries them, and what is their wish list?
Umang
SEBI said that they would bring family offices under some kind of regulation. It is still not clear, but sooner than later it is coming. Family offices must brace for that moment.
We do not know the format, but there will be more disclosure and compliance requirements. The best thing to do is prepare—perhaps not a compliance officer today but outsource compliance activity today and keep themselves ready for what is coming. Keep international disclosure standards and compliance at the helm. So, use this time to get ready and follow international developments.
There are many things on their wish list but the biggest is Qualified Institutional Buyers (QIB) status. QIB are largely funds, NBFCs (above INR500 crore net worth), sovereigns, insurance companies—a status that allows early access to deals (e.g., anchor in IPOs), which family offices do not have today. We have seen certain instances where pricing was influenced by high‑net‑worth individuals rather than institutions. The biggest ask as a community would be QIB status.
Surabhi
Shagun, which regulations keep you awake at night, and what would be your ask?
Shagun
Inheritance tax—will it come, not come, when, what is the goal, and how to prepare? Preparation and anticipation. Stay on the right side of the law. Protect capital while maximizing returns. Many set up family trusts globally and when we had inheritance tax in the past (before 1985), that was the legal way to plan. We do not know in what shape it may return. Every year pre‑budget, we get requests for articles or setting up trusts. Uncertainty keeps people alert. The best you can do is stay on the right side of the law. Look at whatever opportunities are legally available. And hire consultants.
Surabhi
Umang, talent is underdiscussed in family offices. There is this idea: “I am a family office; I belong to an operating company, so whatever I need will come from there,” but you must keep a wall in the middle. How are families managing in‑house talent? When do they hire externally? We have seen in the news large amounts invested that went bankrupt; I wondered who did due diligence or compliance. Where should the balance be?
Umang
When I started my career, GDP was about US$400 billion. If you had asked if it would be US$4 trillion 25 years later, no one would have imagined it. We have seen 10x GDP growth. But the talent pool has not grown to match—not only in consulting, but in financial services broadly—wealth, asset management, even banking.
The industry has a talent shortage; families also find it difficult to get the right talent. But families are adapting. Keep a principal or core in‑house team and hire the right external experts—private equity due diligence, tax, and so on. It is a balance—core team plus external experts. As they grow, they will need help with deals, compliance, and insights.
Only very large family offices (top families) can attract all the talent in‑house. Most will have a core team with external experts guiding at the right time. In addition, the person responsible for the family is constantly upgrading through programs—next‑generation, family office/business, investment programs—so the direction continues as the family wants.
Surabhi
Shagun, you are in charge. How do you balance in‑house vs. outside hires, and how do you keep upgrading yourself?
Shagun
It is very important to keep studying. There are courses I am currently enrolled in. I am an avid reader—anyone I meet, I ask for a book recommendation. It is extremely important to find the right set of advisors you can bounce things off; experts in their fields. It has to be merit‑driven. Today, my brother and I run it together; we take many decisions by talking to each other and to our advisors. We have also divided industries amongst ourselves; you cannot know everything. Stay educated, stay humble, have the right people, that is the only way ahead.
Biggest mistakes to avoid are not having the policy mandate and structure; not institutionalizing the process; going by whims and fancies. Do not be afraid to ask questions; it is your wealth you are managing. Ask as many as you want. Only when you are comfortable with the underlying instrument, should you move ahead. Keep working hard. Stay humble. Take every challenge head‑on. Do not be afraid. Initially, I was nervous, but the more you work, the more comfortable you are in your own skin, the easier the journey becomes.
Surabhi
As a young woman, while more women are stepping into leadership, there are challenges. What is driving the shift, and what needs to change?
Shagun
Ownership and accountability go hand‑in‑hand. Women are not just on the sidelines anymore. They have always been preservers of wealth; it has just become more formal and institutionalized. It is important because we understand the emotional and financial aspects and can marry the two to grow wealth for the next generation. I come from privilege and I am grateful I have seen it this way from my grandparents’ generation.
The mindset should be merit‑driven over gender‑driven. When you see two kids as two successful individuals (not ‘boy vs. girl’), you see the talent and special skills both bring; nurture them and let them grow—they will benefit the family and the institution at large. Focus on nurturing the next generation, stay with it. From a woman’s perspective, stay at it as there is a lot to prove. You have got your education and hard work; keep yourself updated. You have control, you have got power.
Surabhi
What will the family office of 2035 look like?
Umang
First, global investments as a percentage of portfolios will be significantly higher than today. We have seen regulations changing (e.g., August 2022 circular). GIFT City will be a large beneficiary; they have made it quite simple to access GIFT City and global investments.
We already have a few managers doing that; the process is now understood—it will take off from here. Second, the percentage of alternative investments will rise further. Third is AI; the podcast cannot be complete without mentioning AI. I have been using AI—nascent, but powerful. I used an app to download recent presentations of listed AMCs, earnings transcripts, links to a few media articles—and within seconds, a 15-minute podcast was generated explaining the future of asset management. Two AI voices talking to each other — it made sense.
Going forward to 2035, families will use AI not only for research but also for risk management; compliance as well. All of this will blend.
Fourth is investment management; family legacy, philanthropic activities will get seamlessly intertwined into the family structure, partly because of regulations and partly as families mature and understand better. That is my vision of 2035.
Surabhi
Shagun, your vision of your family office?
Shagun
I hope preserve wealth well and grown it without taking too much risk. I hope we are part of exciting startups. I hope we continue my grandfather’s legacy by blending philanthropy with ethically run business. And feature on the cover page of Forbes, which will make me very happy.
Surabhi
It was great talking to you. You talked about things that worry you, mistakes made and how to fix them. And Umang, you ended with the most important ‘AI’ – word that everyone has to hear. Thank you. I hope to meet you again and maybe next time we will have another AI model sitting with me doing all the talking.
Host
Surabhi Marwah
Partner, Family Office Advisory Services, EY India
Private Tax Services at EY help private clients and businesses in managing complex tax accounting, including tax planning, compliance and business structuring.
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