India’s Family Offices Gear Up For $1.5 Tn Succession Wave

India is heading into a significant phase of intergenerational wealth transfer, with an estimated $1.3 trillion-$1.5 trillion expected to pass to the next generation over the coming decade, potentially creating a larger pool of capital for family offices and alternative investments, according to a Julius Baer-EY report.

The transition is unfolding alongside a broader shift in how wealthy families manage capital.

Family offices are increasingly moving beyond their traditional role of preserving wealth and are becoming more structured, professionally managed and active in deploying capital, the report said.

Growing wealth, driven in part by successful IPOs, private equity exits and founder liquidity events, has contributed to this evolution.

The report estimates that India has more than 19,000 ultra-high-net-worth individuals with assets exceeding $30 million, a figure expected to rise beyond 25,000 by 2031.

Governance Takes Centre Stage

As family offices expand in size and complexity, formal governance is becoming a greater priority, the report said.

Families are increasingly adopting structures such as family constitutions, investment committees, family councils and advisory boards to clarify decision-making, accountability, risk oversight and succession planning.

The shift is also reducing reliance on founder-led decision-making, with professional management teams and specialists being brought in to handle investments, finance, tax, compliance, cybersecurity and due diligence.

Families are also increasingly treating the family office as a business in its own right rather than merely an investment vehicle.

Alternatives And Emerging Sectors Rise

The Julius Baer-EY report said family offices are broadening their portfolios as larger pools of capital require greater diversification. Investments are increasingly flowing into private equity, venture capital, private credit, Alternative Investment Funds, REITs and InvITs, alongside direct and co-investment opportunities.

Family offices are also exploring emerging areas including artificial intelligence, renewable energy, cloud and data centre infrastructure, reflecting the changing investment priorities of younger generations and families with deeper sector expertise.

This could provide further momentum to India's alternatives market, where total alternative assets under management are reportedly estimated at around $400 billion.