Latest news with #EY-JuliusBaer
India Today
01-07-2025
- Business
- India Today
Why India's ultra-rich love family offices
India's wealthiest families are reshaping the way they manage money. No longer content with informal advisors or fragmented portfolios, the ultra-rich are increasingly embracing family offices—sophisticated, structured setups designed to navigate complexity, reduce risk, and preserve generational wealth with shift is both rapid and dramatic. From just 45 in 2018, the number of family offices in India has grown to nearly 300 by 2024. The rise reflects more than growing fortunes. It points to a more deliberate way of managing wealth—one that is professional, globally oriented, and built to outlast Surabhi Marwah, Partner and Co-Leader of Private Tax at EY India, puts it, '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.'FAMILY OFFICES: THE NEW WEALTH COMMAND CENTRES Modern family offices operate more like private financial institutions. They manage much more than investments—handling succession planning, philanthropic giving, tax structuring, and grooming the next generation of leaders. They consolidate sprawling wealth into a single, well-oiled machine, introducing discipline, governance, and offices typically form at major financial milestones: the sale of a business, a significant inheritance, or a major liquidity event. While there's no official threshold, many in the wealth management space consider US$100 million in investable assets a practical baseline. Until then, multi-family office platforms offer an accessible, resource-efficient recent EY–Julius Baer study identifies key motivations behind these setups: protecting assets, managing growing complexity, separating personal finances from business wealth, and addressing intergenerational needs with clarity. (Source: EY-Julius Baer study) Notably, the model is catching on with both legacy families and first-generation entrepreneurs. For the latter—often younger and tech-savvy—family offices offer the flexibility to build personalised investment mandates, maintain privacy, and institutionalise legacy-building from day INDIA'S SUPER-RICH LOVE FAMILY OFFICESIndia is undergoing an intergenerational wealth transfer of historic scale—over $1.3 trillion is expected to pass hands in the next decade. Alongside this, a surge in startup exits, IPOs, and private equity windfalls is creating new liquidity, fuelling demand for bespoke wealth City is also amplifying momentum. With relaxed regulations and cross-border ease, it has become an attractive jurisdiction for setting up efficient, global-facing family offices. Outflows under the Liberalised Remittance Scheme (LRS) reached $31.7 billion in 2023–24, up from $18.8 billion in 2019– PRESERVATION TO GLOBAL BETSNew-age family offices, especially those serving first-generation entrepreneurs, are allocating significantly to high-growth sectors. Over half of the surveyed offices have put more than 25% of their portfolios into emerging bets, with many going beyond 50%.advertisementYet caution remains. Around 57% still allocate less than 10% to private equity or VC, often citing limited access or risk FRICTION AND REGULATORY LANDMINESGlobal ambitions come with complex compliance. Domestic tax policy changes and intricate cross-border rules are becoming key operational hurdles. According to the report, 48% of family offices in India cite tax as a primary concern, with 37% naming regulatory complications manage this, families are leaning on structures like LLPs, private trusts, and GIFT City-based entities. But the tightrope walk between staying compliant and retaining operational flexibility SUCCESSION, FORMALLYSuccession planning has long been a sensitive topic among Indian business families. That's changing. Nearly 60% of families now have formal plans through wills or constitutions. Around 19% have adopted structures like trusts or many remain unprepared. Families are starting to codify roles, draft shareholder agreements, and institutionalise mentorship for the next generation. Digital vaults and encrypted platforms are increasingly being used to store key legal and financial documents—reducing dependence on oral A FAMILY OFFICE TAKES SHAPESetting up a family office involves careful planning—defining intent, identifying legal frameworks, and building the right team. Whether the aim is philanthropy, succession, investment, or a combination, the goals shape whether a single-family or multi-family model fits like LLPs, companies, and trusts enable asset protection and tax efficiency. Governance frameworks clarify decision-making authority and responsibilities. An Investment Policy Statement (IPS) aligns capital deployment with risk appetite. Typically, a family office head manages operations and coordinates with advisors. An investment committee, comprising professionals, family members, or both, drives asset allocation and reviews offices also play a hands-on role in risk management, estate planning, administrative support, and philanthropic initiatives. With younger UHNIs entering the fold, these offices are embracing technology, digital security, and thematic investing like NEXT?The Indian family office is no longer just a sign of affluence. It's becoming a strategic necessity. What started as a tool for preserving wealth is fast turning into a platform for building dynasties, fusing capital with purpose, and governance with portfolios spreading across continents and generations, and families taking on more risk, regulation, and responsibility, the era of DIY wealth management is firmly behind us. The new-age family office is structured, agile, and built to endure, not just market cycles, but generational shifts.- Ends
Time of India
27-06-2025
- Business
- Time of India
India's family offices rise to 300 in 2024: Report
Bengaluru: The number of family offices in India rose sharply to about 300 in 2024, from just 45 in 2018, reflecting a significant shift in how ultra-high-net-worth families manage their capital, an EY-Julius Baer study showed. The Indian Family Office Playbook highlighted how these offices evolved from traditional roles of succession planning and wealth preservation into sophisticated institutions making active investments across sectors and borders. This shift coincides with a wave of liquidity events, from business listings to private equity exits, and a rise in families with net worth above $30 million, expected to reach 19,000 by 2028. "As more families formalise their wealth structures, the role of the family office is expanding, from investment and governance to succession, sustainability and globalisation," the report stated. While traditional allocations to public equities and fixed income remain relevant, family offices are increasingly channelling capital into alternatives such as private equity, venture capital, private credit, REITs, and InvITs. The trend is led by first-generation entrepreneurs and risk-tolerant families looking to diversify portfolios and capture long-term growth, the report added. The growth of family offices is also reshaping succession planning, with families focusing more sharply on governance and formal structures. The report noted that formal succession policies, wills, and trusts are gaining prominence, helping families mitigate internal conflicts and enable seamless transfers across generations. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru "Family offices have become hubs for managing complexity, aligning financial, legal, and philanthropic interests across generations," the report stated. "With rising globalisation, digitalisation, and evolving regulations, their role will only deepen as India emerges as a critical node in the global investment landscape." The study also pointed to Gift City as an emerging base for global investments, allowing families access to international markets with favourable tax and operational benefits. The trend towards structured, institutional approaches is expected to intensify as families evolve from entrepreneurs to multi-generational stewards of capital.
Indian Express
26-06-2025
- Business
- Indian Express
Family offices diversifying into global equities, private equity: Report
While 25 per cent of Indian family offices set up by business houses continue to prioritize wealth preservation, many are now actively diversifying beyond traditional assets into global equities, real estate, private equity, venture capital, and alternative investments, says a report on family offices/ Allocations are increasingly moving into global equities, real estate, private equity, venture capital, and other alternatives, says the EY-Julius Baer report. While preserving wealth remains foundational, families are actively diversifying beyond traditional assets. With over 300 family offices now operating in India, up from just 45 in 2018, the ecosystem is becoming more structured, globally focused, and purpose-driven, it said. Family offices are going global as ultra-high-net-worth 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. A family office is a private wealth management advisory firm established to manage the financial, investment, and personal affairs of an UHNI family. It acts like a full-service financial command centre for the family, offering customized solutions that go far beyond what traditional banks or wealth managers provide. There is a growing focus on formalising governance and succession planning among family offices, it said. 'While 59 per cent of families have put wills or constitutions in place, and 19 per cent have adopted structures like trusts or LLPs, a significant number still lack a comprehensive succession plan – highlighting the need for greater preparedness,' it said. It said private markets are yet to see wider adoption among family offices. As many as 57 per cent of family offices allocate less than 10 per cent of their portfolios to private equity or venture capital, often citing limited access or as a cautious approach. 'Regulatory matters are gaining attention among family offices,' the report further said. Changing tax laws were flagged by 48 per cent of respondents, while 37 per cent cited cross-border complexities, the report said. As Indian families expand globally, they are adopting stronger governance, leveraging digital tools, and focusing on long-term impact. 'Key trends include rising cross-border investments, growing use of GIFT City, increased interest in ESG, and hybrid family office models that blend in-house teams with external experts for greater agility,' it said. '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,' said Surabhi Marwah, Co-leader, Private Tax and Partner, EY India.
India Gazette
26-06-2025
- Business
- India Gazette
India's Family Offices diversifying assets to global, alternative funds: Report
New Delhi [India] June 26 (ANI): While 25 per cent of Indian family offices continue to prioritise wealth preservation, many are now actively diversifying into global and alternative assets, highlights the recently launched EY-Julius Baer report, The Indian family office playbook. The report highlights a transformative shift in how India's ultra-high-net-worth families are diversifying and managing their wealth to grow and govern. Family offices are private wealth management advisory firms that cater to the needs of ultra-high-net-worth individuals and families. The report underscores that while preserving wealth remains foundational, families are actively diversifying beyond traditional assets. Allocations are increasingly moving into global equities, real estate, private equity, venture capital, and other alternatives. With over 300 family offices now operating in India, up from just 45 in 2018, the ecosystem is becoming more structured, globally focused, and purpose-driven. Family offices are going global as UHNIs are expanding across borders, with Liberalised Remittance Scheme (LRS), remittances have risen from USD 18.8 billion in 2019-20 to USD 31.7 billion in 2023-24. As the number of UHNWIs increases, many first-generation and risk-tolerant entrepreneurs are investing in innovative sectors through family offices. 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. Umang Papneja, CEO, Julius Baer India, said, 'Family offices are increasingly catering to first-generation entrepreneurs who are more risk-tolerant and open to emerging sectors. As the scale and complexity of wealth grow, there's a stronger focus on strengthening governance, growing asset value and planning for legacy succession.' Surabhi Marwah, Co-leader, Private Tax and Partner, People Advisory Services - Tax, EY India, added, '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.' According to the report, private markets are yet to see wider adoption among family offices. About 57 per cent of family offices allocate less than 10 per cent of their portfolios to private equity or venture capital, often citing limited access or a cautious approach. Regulatory matters are gaining attention among family offices, the report further cites. Changing tax laws were flagged by 48 per cent of respondents, while 37 per cent cited cross-border complexities. The report 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. Key trends include rising cross-border investments, growing use of GIFT City, increased interest in ESG, and hybrid family office models that blend in-house teams with external experts for greater agility, the report added. (ANI)
