Assets managed by Indian family offices are expected to grow around 1.5 times over the next three years, driven by rising wealth creation and a shift towards more active investment strategies, according to the Julius Baer EY report Indian Family Office Playbook Now Next and Beyond.

The report estimated that Indian family offices managed around ₹70,000 crore in assets in 2024, with the asset pool projected to expand at a compound annual growth rate of 14 percent over the next three years. The growth reflects not only an increase in family wealth but also a significant transformation in investment behaviour.

Alternative assets have become an increasingly important component of family office portfolios, with around 40 to 45 percent of allocations at many family offices directed towards areas such as private equity, venture capital, private credit, Alternative Investment Funds, REITs and InvITs. Family offices are also increasing their participation through direct investments and co-investments.

Investment interest is expanding into emerging and technology-driven areas including artificial intelligence, climate technology, renewable energy, semiconductors, electronics manufacturing, cloud services and data centres. The shift indicates a growing preference for long term exposure to innovation-led sectors and private markets.

According to EY India, Indian family offices are increasingly moving beyond traditional wealth preservation strategies and becoming active allocators of long term capital. Rising wealth creation is encouraging families to participate more actively in private markets and emerging sectors, while simultaneously increasing the importance of governance, succession planning and professional management.

India currently has more than 19,000 ultra-high-net-worth individuals, with the number expected to exceed 25,000 by 2031. The report also estimates that around US$1.3 trillion to US$1.5 trillion of wealth could be transferred between generations over the next decade. This is expected to increase the need for structured succession planning, stronger governance and institutionalised investment processes.

Family offices are consequently moving away from founder-led and informal structures towards professionally managed institutions. Investment committees, family councils, specialised professionals and formal decision-making frameworks are becoming more common as families seek to manage increasingly complex portfolios.

Technology is also expected to play a greater role in family office operations. AI-enabled analytics, integrated reporting, digital workflows and cybersecurity tools are likely to see wider adoption. However, the report expects AI to primarily support functions such as data extraction, compliance and due diligence in the near term, rather than replace human investment judgement.

The report expects Indian family offices to become increasingly important sources of long term capital for entrepreneurship and strategic investments as their portfolios, governance frameworks and investment processes become more institutionalised.