(KR Sekar is Partner and Leader, Deloitte Private, Deloitte India and Raghav Malhotra is Director, Deloitte India)
The rapidly increasing number of ultra-high-net-worth families and the institutionalisation of wealth in India have changed the family-office landscape in the country.
There are more than 300 family offices in India today, compared with 45 in 2018, and they collectively have $30 billion in assets under management (AUM). Prominent examples include the Cyrus Poonawalla Group and Premji Invest.
This growth has transformed the family office into a robust, well-structured institution executing multi-billion-dollar investment strategies—a decisive shift from an earlier era when wealth was managed primarily by external advisors.
Historically, Indian family wealth was managed by personal or trust-based structures, often intertwined with operating businesses. That model is now giving way to institutionalisation, driven by technological transformation and the globalisation of mindsets.
Family offices in India, which handle multi-generational wealth, are witnessing a shift towards formalised structures led by a strategic mindset. This change is being induced by the trend towards organised rule, the rise in prosperity and the presence of international investors becoming more optimistic about India.
Traditional family offices—once dependent on family savings and accrued funding—are now seeking alternative sources of funding such as private equity and venture capital associations.
The focus has shifted towards governance and professionalism; in other words, families that relied only on CFOs or accountants for finance and wealth management are now working with independent advisors. This professionalisation is driving the growth of family offices covering investment advisory, governance, succession planning, philanthropy, etc.
Traditional family offices are now seeking alternative funding sources such as PE and VC associations.
Traditional modes of investments—real estate and public-markets—are giving way to private equity, venture capital and other alternative assets. Cross-border investments are now favoured as families are exposed to international opportunities and diversified portfolios. Families are collaborating with startups and founders not only as investors but as strategic partners. A few notable examples of this include AG Ventures, Burman Family Holdings, and Mehta Ventures.
This is an indication that they are willing to risk, experiment, and adopt technology to stay competitive.
Emerging investment themes
Technology: Investment has moved from conventional asset classes to disruptive and growth sectors such as AI, fintech, space tech, deep-tech etc. New generation leaders, who prioritise innovation, are tilting towards thematic investments such as AI, climate technology, renewable energy, and digital infrastructure. Family offices focusing on tech investments today include Artha India Ventures and Catamaran Ventures.
Diversification and globalisation: Indian family offices are moving and expanding towards capital exposure to US markets, private equity, venture funds, and real estate, more specifically in the Middle East. The focus is shifting towards mature capital markets, and global opportunities. The newer generation of business leaders are providing a ‘global approach’ at the family table. They have a solid grasp on technology and a real drive to dive into markets all over the world. That kind of forward approach pulls them into more sophisticated ways to invest. Options such as Category III AIFs stand out. So do the structures in IFSC/GIFT City. Offshore opportunities fit right into India’s shifting investment world. Still, each one brings along its share of pros and cons.
Purpose-led investing: This has become another defining theme, combining financial objectives with social outcomes. Philanthropy, once conducted informally, is now being professionalised. New generation wealth owners are evolving purpose-based capital spending through incorporating environmental, societal, and governance factors into investment decisions. This tendency targets a larger social trend towards responsible capitalism in which social impact and financial achievement are seen to be equally important. Family offices are diversifying their funding strategies towards projects in renewable energy, education, healthcare, and technology space as they re-commit to long-term sustainability.
Key statistics
The recent Deloitte report ‘Defining the family business landscape 2025’ provides some key investment trends and statistics.
- Indian family businesses are demonstrating exceptional resilience and momentum. Over 63% achieved double-digit revenue growth in CY2024, and projections for CY2025–26 remain robust, with nearly 60% targeting over 15% growth in 2025 and 75% in 2026.
- Nearly 50% of Indian family businesses earn between $1-30 billion annually, with 36% in the $1–5 billion range and 13% in the $10–29.9 billion range.
- Strategic growth ambitions are evident, with 15% planning Initial Public Offering (IPOs) and 17% engaging in private equity.
- Indian family businesses are accelerating modernisation to secure long-term competitiveness. Technology adoption is at the forefront, with 53% already leveraging AI in their operations, well ahead of global averages.
- India’s family businesses have a diverse industrial footprint, concentrated in chemicals and energy (23%), consumer products (15%) and technology (13%), sectors critical to India’s economic momentum.
- A rising commitment to sustainability and responsible progress is evident across India’s family enterprises. 76% express strong commitment to ESG priorities, with leading focus areas including social responsibility (57%), environmental sustainability (52%), and diversity, equity and inclusion (48%).
- 89% of Indian family enterprises plan to expand within Asia Pacific, followed by North America (39%) and Europe (37%), underlining regional confidence and growth ambition; and
- Women are increasingly present in leadership roles, with 73% of companies reporting more than 10% female representation on their boards and 66% noting the same in their executive teams.
As the Indian family office ecosystem continues to grow, they are now willing to put themselves at the test in comparison to global peers such as Singapore and Dubai, constantly learning and evolving towards complex structures while maintaining a domestic investment focus.
Regulatory changes
Changes to the tax and regulatory framework have had a direct impact on family-office strategies.
New developments to the Hindu Succession Act (including rights of married daughters in HUF) and Companies Act 2013 (including the necessity of women directors) are forcing a recognition of gender configurations in traditional family businesses. This shift forces companies to reconsider their ownership and succession strategies.
Also, families must devise transparent structures and robust compliance systems when it comes to the movement of wealth across borders.
Take the Overseas Investment framework. The Reserve Bank of India distinguishes between Overseas Direct Investment (ODI), which comes with actual control or strong influence, and Overseas Portfolio Investment (OPI). Blending those approaches is a pain point for compliance, since regulators keep tightening matters like round-tripping etc. For family offices, this means restrictions on amounts that can be invested abroad, extensive paperwork and lower mobility to move capital abroad.
Closer home, GIFT City is emerging as a magnet for fund managers. Recent reforms have made it easier to set up and operate funds, with lower minimum corpus requirements and flexible management models. A new concept of Family Investment Funds was introduced in GIFT City to match global alternatives in Singapore, Dubai and other locations. However, this concept has not yet seen the light of day.
Alternatively, families have started using AIFs as a vehicle in GIFT City. However, authorities have clarified that single-families creating AIFs, disguised as a fund, will not be permitted. The message is clear—structures must reflect substance, not just form.
Taxation adds another layer of complex analysis. A recent Delhi High Court ruling brought relief to Category III AIFs by rejecting the blanket application of the maximum marginal rate, provided investor interests are clearly identifiable. This is good news for family offices using onshore AIFs, but the fine print still matters.
Outlook for 2026
As we set our eyes on 2026, the outlook for family offices in India is promising and pointing towards a shift in their investment structures:
- Indian family offices are likely to place bets on alternative sources such as private credit/equity, venture capital etc., moving beyond routine portfolios comprising shares, stocks, real estate etc.
- Significant reliance will be placed on tech tools, digitisation and automation to drive investment and wealth management decisions.
- Impact investing in areas as climate tech, sustainable energy, philanthropy and social initiatives etc.
- The rise of women-led leadership in India is resulting in philanthropic and ESG-driven finance structures.
Rising threats such as regulatory hurdles, cybersecurity, and geopolitical tensions necessitat proactive risk control. Key strategic aims will emphasise promoting transformation, enhancing the pace of decision-making and reinforcing governance structures to effectively operate in a more interconnected environment.
Deloitte identifies three catalysts for transformation:
(a) governmental programmes that encourage entrepreneurship.
(b) enhanced access to international capital.
(c) social shifts, including the increase of nuclear families and the changing ambitions of younger cohorts.
Success now depends on blending legacy with modernity, embracing professional boards, drafting family constitutions, and building transparent structures that regulators and investors can trust. It also means thinking globally, not just in terms of markets but in terms of investment structures.
It is no longer about the creation of structures and wealth; the pertinent question on the minds of family business owners has evolved to a more meaningful thought signifying deployment and fungibility of the wealth so created.
