19,000 UHNIs today, 25,000 by 2031: India’s family office boom has begun | Personal Finance

India’s family offices are sitting on an estimated Rs 70,000 crore asset pool that could swell to roughly Rs 1.05 trillion within three years, as the country’s ultra-rich population expands and an estimated $1.3 trillion-$1.5 trillion of family wealth changes hands over the next decade. 

 

The shift is also changing where India’s wealthiest families put their money: 40-45% of allocations in many family offices are already going into alternative assets, including private equity, venture capital, private credit, AIFs, REITs and InvITs, according to the latest Julius Baer-EY Indian Family Office Playbook: Now, Next and Beyond.

 

India’s UHNI population is set to swell

  

India already has more than 19,000 ultra-high-net-worth individuals (UHNIs), according to the report, and that number is expected to cross 25,000 by 2031.

 

That expanding wealth pool is creating a larger universe of families capable of establishing dedicated family offices—professional structures that manage investments, succession, governance, philanthropy and other aspects of family wealth.

 

But the next phase could be particularly significant because India’s family offices are increasingly moving beyond the traditional objective of simply preserving wealth.

 

They are emerging as long-term pools of capital, with greater willingness to invest directly in businesses, back entrepreneurs and participate in sectors expected to drive India’s next phase of economic growth.

 

Rs 1.3 trillion-$1.5 trillion wealth transfer looming

 

One of the biggest forces likely to reshape family offices is the transfer of wealth between generations.

 

The Julius Baer-EY report estimated that $1.3 trillion-$1.5 trillion of intergenerational wealth could be transferred over the coming decade.

 

That transition could force wealthy families to professionalise structures that were previously informal or promoter-led.

 

For families, the challenge will not simply be deciding who inherits the wealth. It will increasingly involve determining how that wealth is governed, invested and preserved across generations.

 

Alternatives take centre stage

 

Perhaps the clearest change in investment behaviour is the growing allocation towards alternative assets.

 

The report said 40%-45% of allocations in many family offices are now directed towards alternatives, including:

 

• Private equity
• Venture capital
• Private credit
• Alternative Investment Funds (AIFs)
• Real Estate Investment Trusts (REITs)
• Infrastructure Investment Trusts (InvITs)

 

The shift signals a move away from portfolios dominated by conventional listed equities and fixed-income instruments towards investments that can offer access to private companies, specialised strategies and real assets.

 

Family offices are also increasingly pursuing direct investments and co-investments, allowing them to take a more active role in businesses rather than simply investing through funds.

 

AI, semiconductors and data centres emerge as hot sectors

 

Where India’s wealthiest families are deploying capital is changing as well.

 

The report identifies growing family-office interest in sectors including artificial intelligence, climate technology, renewable energy, semiconductors, electronics manufacturing, cloud services and data-centre infrastructure.

 

The common thread is long-term structural growth.

 

For family offices with investment horizons stretching across decades rather than quarters, these sectors can offer an opportunity to participate directly in the development of India’s technology, energy and digital infrastructure ecosystem.

 

This also marks a shift in the role of wealthy families—from being passive owners of capital to becoming strategic investors and providers of long-term risk capital.

 

Technology is becoming part of the family office itself

 

The institutionalisation of family wealth is also changing how family offices operate internally.

 

The report highlights increasing adoption of AI-enabled analytics, integrated reporting platforms, cybersecurity systems and digital governance tools.

 

The objective is not simply automation. As portfolios become more complex—with multiple asset classes, geographies, funds and direct investments—families need a consolidated view of their wealth and risk.

 

Technology can provide greater visibility across portfolios while strengthening governance and investment decision-making.

 

More wealth, but also more complexity

 

The expansion of family-office assets comes with a corresponding increase in regulatory and operational complexity.

 

As Indian families invest more internationally, they face growing requirements around regulation, data privacy, transparency and cross-border compliance.

 

That is increasing demand for specialised talent and professional management.

 

The family office of the future, therefore, is likely to look less like an informal investment desk and more like an institutional investment organisation—with investment professionals, technology infrastructure, risk management and formal governance structures.

 

From preserving wealth to creating capital

 

The larger transformation may be philosophical.

 

Family offices are increasingly being positioned not merely as vehicles for protecting inherited wealth, but as long-term engines of capital formation, entrepreneurship and strategic investing.

 

Kunal Sumaya, Ad Interim Country Head – India & Market Head – Global NRI, Julius Baer, said the ecosystem is at an “inflection point”, driven by wealth creation from India’s start-up ecosystem and primary markets, a generational shift in wealth management and the institutionalisation of Indian capital markets.

 

“The scale and pace of this evolution is being shaped by three powerful forces: explosive wealth creation driven by a strong start-up  ecosystem and the rise of Indian primary markets; a profound generational shift in wealth management and deployment; and the institutionalisation of Indian capital markets. As India prepares for one of the most significant intergenerational wealth transfers in its history, the families that embrace this moment to build institutional discipline, strengthen governance, invest in technology and talent, and take a long-term approach to managing wealth will not only preserve their legacies, but emerge as architects of India’s economic future,” said Sumaya.