Indian family offices diversifying into global and alternative assets, says EY-Julius Baer report

India’s rich and mighty individuals are diversifying into global and alternative assets to grow their assets through family offices, says the recently published EY-Julius Baer report 'The Indian Family Office Playbook'.

It notes that the number of family offices operating in India has grown to 300 from just 45 in 2018, with the ecosystem becoming more structured, globally focused, and purpose-driven.

“Allocations are increasingly moving into global equities, real estate, private equity, venture capital, and other alternatives. Family offices are going global as ultra-high networth individuals (UHNIs) expand across borders, with Liberalised Remittance Scheme (LRS) remittances rising from $18.8 billion in 2019–20 to $31.7 billion in 2023–24. Private credit, though still a small segment, is emerging as a key asset class, with family offices increasingly embracing it for its stable returns, downside protection, and diversification benefits," the report points out.

"The Indian family office ecosystem is at an inflection point where wealth preservation alone is no longer enough. Families now seek efficiency, transparency, and global access, all of which require a more structured approach. At the same time, navigating tax and cross-border regulatory frameworks is becoming central to how these offices function and plan ahead," says Surabhi Marwah, co-leader, Private Tax and Partner, People Advisory Services – Tax, EY India.

As per the EY-Julius Baer report, private markets are yet to see wider adoption among family offices. It says that 57% of family offices allocate less than 10% of their portfolios to private equity or venture capital, often citing limited access or as a cautious approach.

The report also notes a growing focus on formalising governance and succession planning among family offices. While 59% of families have put wills or constitutions in place, and 19% have adopted structures like trusts or LLPs, a significant number still lack a comprehensive succession plan - highlighting the need for greater preparedness, it says.

“Preserving and enhancing generational wealth lies at the heart of every family office.  In the process, they enable seamless succession through structures like private trusts, aligned shareholder agreements, and defined governance roles. They also invest in next-gen leadership through structured exposure and formal constitutions that ensure long-term continuity," KT Chandy, partner and co-leader, Private Tax, EY India, noted.

To stay future-ready and resilient, the report outlines several recommendations for Indian family offices including adoption of formal governance and succession frameworks to ensure clarity, continuity, and alignment across generations.