India is set to see $1.3 trillion-$1.5 trillion of wealth change hands between generations over the coming decade, a transition that is expected to increase the focus on succession planning, governance and professional management of family wealth, according to a Julius Baer-EY report.

The scale of the transfer comes as India’s ultra-high-net-worth individual (UHNI) population expands and family offices take on a larger role in deploying private capital. India has more than 19,000 UHNIs, defined as individuals with assets of more than $30 million, and that number is expected to exceed 25,000 by 2031.

Family offices are also becoming more institutional in how they manage and deploy capital. Estimates cited in the report put the number of family offices at nearly 300 in 2024-25, up from around 45 in 2018.

Kunal Sumaya, Ad Interim Country Head, India and Market Head, Global NRI at Julius Baer, said the family office ecosystem was being reshaped by wealth creation through the start-up ecosystem and primary markets, changes in how successive generations manage and deploy wealth, and the institutionalisation of Indian capital markets.

Speaking on the expected wealth transfer, Sumaya said, “As India prepares for one of the most significant intergenerational wealth transfers in its history”, families that strengthen governance, invest in technology and talent and take a long-term approach to wealth management would be better placed to manage the transition.

 

Also read: Gold loans remain a bright spot for NBFCs, but rising competition and risks in property-backed loans remain

 

Family offices move beyond wealth preservation
The changing ownership of wealth is coinciding with a shift in how family offices invest. Between 40% and 45% of allocations in many Indian family offices are now directed towards alternatives, including private equity, venture capital, private credit, Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

Direct investments and co-investments are also becoming more common, with family offices investing alongside private equity and venture capital funds and taking positions in unlisted growth companies.

The broader alternative assets market in India is estimated at $400 billion, including $156 billion in Securities and Exchange Board of India (SEBI)-registered AIFs. It could exceed $2 trillion by 2034, according to the report.

Investment themes are also changing. Family offices are deploying capital towards artificial intelligence (AI), climate technology, renewable energy, digital infrastructure, energy storage, semiconductors, electronics manufacturing, cloud services and data centres. Real estate remains an important allocation.

This shift reflects the move from portfolios centred on equities, fixed income, real estate and gold towards a wider range of private and real assets. Family offices are also using their operating experience in sectors such as manufacturing, technology and healthcare to identify investments beyond their core businesses.

 

Also read: RBI draft on revolving credit could impact lending on UPI, flexi loans, other products: Piramal Finance MD

 

Succession puts governance under focus
The expected wealth transfer is also forcing families to address how decisions will be made after ownership passes to the next generation.

Surabhi Marwah, Puneet Sachdev and KT Chandy of EY India said family offices are different from other investors because they act as custodians of wealth with a long-term horizon. Commenting on the growing complexity of family wealth, they said it requires specialist skills and governance frameworks that balance flexibility with compliance, accountability and transparency.

Family constitutions, family councils, investment committees and professional management teams are becoming more common. The focus is shifting from founder-led decision-making towards defined roles, formal investment processes and clearer succession arrangements.

Technology is becoming part of that transition, with family offices adopting AI-enabled analytics, integrated reporting systems, portfolio dashboards and cybersecurity tools. The report also points to rising requirements around data privacy, cross-border investments and regulatory compliance.

The wealth transfer is therefore expected to change not only who controls family capital, but also how it is governed and invested. Family offices are increasingly positioned as long-term capital providers, with their role extending into entrepreneurship, private markets and strategic investments.