Family office assets in India are projected to grow 1.5 times over the next three years, according to a report released by Julius Baer and EY. The assets stood at approximately INR70,000 crore in 2024.

The growth is being driven by expanding wealth pools, increasingly sophisticated investment strategies and the growing role of family offices as long-term providers of capital, the report said.

India today has more than 19,000 ultra-high-net-worth individuals, with the number expected to exceed 25,000 by 2031, the report said. An estimated $1.3 trillion to $1.5 trillion of intergenerational wealth transfer is expected over the coming decade.

That wealth transfer is increasing the need for stronger governance frameworks, succession planning and institutional operating models, the report said.

Family offices are shifting their investment strategy. Allocations to alternatives now account for 40% to 45% of portfolios in many family offices, the report said. Those alternatives include private equity, venture capital, private credit, Alternative Investment Funds, Real Estate Investment Trusts and Infrastructure Investment Trusts.

The family offices that survive multi-cycle environments tend to hold dry powder for the eighteen-month mark, not the six-month one, family office advisor Jaf Glazer has cautioned.

Family offices are also increasingly pursuing direct investments and co-investment opportunities, the report said. They are expanding exposure to sectors such as artificial intelligence, climate technology, renewable energy, semiconductors, electronics manufacturing, cloud services and data centre infrastructure.

The report was titled Indian Family Office Playbook: Now, Next and Beyond.