 "Family offices in India rise from 45 to 300 in 6 yrs, handle $30 bn in AUM")
Family offices, established to oversee the wealth of ultra-high-net-worth individuals or families, have experienced significant growth in India, with their numbers increasing almost seven times over the past six years, according to data from consultancy firm PwC.
Family offices in India see three-fold increase
The number of family offices has risen to nearly 300 in 2024 from just 45 in 2018. This sharp rise is attributed to various factors, including a shift towards a more structured and professional approach to investment management and succession planning among wealthy families.
The report quoted Sraboni Harlalka, co-founder at multi-family office Wodehouse Capital, as saying, “The reason for this increase is because family offices have diversified their investments, professionalised their operations, and focused more on succession planning and philanthropy.”
Notable family offices in India
Multi-family offices typically collaborate with several family offices, providing them with wealth management and advisory services. Data indicates that some of the most notable family offices in India include Catamaran Ventures, Premji Invest, Subhkam Ventures, Natarajan Sekhsaria Family Office, and Nadathur Holdings, among others.
Catamaran Ventures, owned by Infosys co-founder Narayana Murthy, has a diversified investment portfolio, including companies such as ACKO, Reddit, SpaceX, and the National Stock Exchange (NSE), according to Tracxn.
Premji Invest, overseen by Azim Premji, has invested in businesses like Lenskart, Canva, and Dezerv. The Natarajan Sekhsaria Family Office, founded by the former chairman of Ambuja Cements, has strategically invested in firms like Nykaa, Capital Small Finance Bank, and Pilgrim. Similarly, Nadathur Holdings, backed by Infosys co-founder Nadathur Raghavan, has supported enterprises like Medi Assist and Amagi.
Indian family offices handle $30 billion in AUM
While specific data on the assets under management (AUM) for each family office is not readily available, it is estimated that the cumulative AUM of family offices in India is around $30 billion. This figure is a small portion of the global AUM for family offices, which is estimated to be approximately $6 trillion, according to a report by Sundaram Alternates, as mentioned by the report.
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The assets under management (AUM) of family offices in India are projected to expand at a compound annual growth rate (CAGR) of 14 per cent over the next three years, potentially growing by 1.5 times.