The Rise & Rise Of Family Offices In India The dynamic, multifaceted family offices invest actively, across sectors and geographies, in both domestic and global markets. A large segment of India's high-net-worth families are setting up organised structures to invest their family wealth

From 45 in 2018 to nearly 300 in 2024, family offices are evolving fast in India. The dynamic, multifaceted institutions invest actively, across sectors and geographies, in both domestic and global markets. A large segment of India's high-net-worth families are setting up organised structures to invest their family wealth. A family office is defined as a private wealth management firm that manages the financial and investment affairs of a single or group of ultra-high-net-worth families. Family offices also have an extended arm – family led ventures – specific investment initiatives managed by a family office. Essentially, a family office is the broader entity, while a family office-led venture is a particular investment undertaken by that entity.

Over the past decade, there has been a rise in family offices both globally and in India. This growth is driven by a shift in priorities from conventional investments in family businesses to a more systematic focus on professionalized investment management, coupled with the desire for succession planning, inter-generational wealth transfer, and increasing desire to derisk the portfolio by making investments across asset classes, sectors and geographies.

Amidst the burgeoning landscape, every investment firm needs to stand out and have a differentiating factor. Sharrp Ventures, the investment office of the Harsh Mariwala family, operational since 2014, considers itself fortunate to see a couple of cycles in venture capital and private equity (VCPE) in India. What sets them apart?

"We have been actively involved with the founders since day one. We want to have a share of voice at the table and believe we can genuinely add value from the depth and breadth of the ecosystem," said Rishabh Mariwala, founder and managing partner, Sharrp Ventures.

Sharp Ventures have been investing in team, systems and processes, and rigor over the past few years to ensure there is a multi-generational investment office, which remains true to its mission of supporting gritty entrepreneurs in the consumer universe. It invests in listed equities in India through an alternative investment fund (AIF) managed by professionals with deep expertise in the space. The portfolio is an optimal mix of mid-size businesses and large caps. Investments will be focused on companies with a strong governance ethic, that are structurally solid and in an accelerating earnings cycle.

For Sharrp Ventures, investment parameters vary by stage of the target company, and by the segment or category of choice. "Our investment strategy is clear, given our legacy, we like consumption as a theme. We want to support gritty entrepreneurs with a bold vision to create the brands of the future and partner with them for capital & value addition across stages. We typically look at a bunch of factors including founder assessment, market structure/dynamics/timing, business model scalability, quantum of capital needed and exit potential," Mariwala added.

The startup ecosystem has given rise to multiple opportunities for family offices. The long-term capital provided by family offices supports sustainable growth and helps startups avoid the pressures of rapid exits often demanded by other investors.These offices also offer enhanced credibility and access to a global network of influential contacts.

Operational since 2016, JSW Ventures brings more than just capital to the table—offering strategic guidance, operational support, and access to the broader JSW Group ecosystem. By combining institutional discipline with the agility of a startup partner, JSW Ventures aims at fueling India's next wave of category-defining companies. It is an early-stage institutional venture capital fund focused on partnering with visionary entrepreneurs who are building technology-led, scalable businesses across India. The Fund's average cheque size ranges from INR 12 – 24 crore.

"JSW Ventures was set up with the vision of setting up an institutional venture fund with the first capital contribution coming from JSW Family Office. The Fund has delivered top-decile returns in its first ever fund. As the Fund is growing, many institutions and Family Offices have come onboard as LPs in the Fund. With this structure of multiple LPs with professional setup will ensure the longevity of JSW Ventures," said Sachin Tagra, managing partner, JSW Ventures.

The Fund operates as a SEBI registered Cat II institutional VC fund, with anchor capital from JSW Family Office. This allows the Fund to tap into the expertise that family offices bring, along with speed and flexibility of institutional venture capital funds.

Explaining what works for JSW Ventures, Tagra said, "Rather than making opportunistic investments, the Fund has developed clear investment theses around specific market gaps. The Fund makes independent investment decisions, driven by professionals with decades of investment experience. At the same time, we are able to tap into the JSW Group for tech validation, opening up potential partnerships for portfolio companies, and any other strategic and operational support."

As a proprietary family capital based platform, Burman Family Holdings is not constrained by rigid investment mandates of a typical private equity / venture capital fund. This affords the flexibility to be more innovative while making investment decisions and screen a wider variety of opportunities. Over the last twenty years, it has invested over US $500 million in various businesses primarily in India, and have partnered and joint ventured with many of the leading Fortune 100 companies from around the world. Unlike a typical investment fund, the Burmans do not have a defined life cycle to deploy and return capital, which gives it the ability to take longer term views on the businesses that it invests in. What sets it apart? "We work very closely with our portfolio businesses in supporting their growth, while giving them the independence to operate and manage the company. Unlike a typical investment fund, we also do not have a defined life cycle to deploy and return capital, which gives us the ability to take longer term views on the businesses that we invest in."

When investing in existing businesses, Burman Family Holdings has the flexibility to enter at different stages of the company lifecycle. "We generally invest only when we can own a sizable shareholding which provides us with certain governance rights and the ability to actively participate in the future strategy of the business."

More recently Burman Family Holdings have started investing in businesses outside of India, with a particular focus on consumer-facing branded businesses. It has launched greenfield ventures in India through joint ventures, partnerships with global businesses that are exploring the Indian market and looking for a value-add local partner.

Do We Have Enough Support: The Legal Structure

As businesses expand globally, family offices are evaluating legal structures that are tax-efficient from both the Indian and global perspectives. Some of the tax strategies that Indian family offices use include adopting a suitable corporate structure and strategic asset allocation.The Indian family office playbook by EY and Julius Baer, suggests that beyond conventional roles of safeguarding and stewarding capital, contemporary family offices are architecting forward-facing investment frameworks, balancing risk and returns. Several family offices are pioneering collaborations with foreign counterparts, thereby broadening their networks and unlocking access to a more diverse array of investment prospects. At the same time, Indian family offices are progressively exploring and capitalizing on novel investment channels within the Indian market.

India's regulatory framework for family offices is still evolving, with key compliance obligations spread across tax, foreign exchange, and financial services regulations.

"While structures set up in India or overseas such as trusts, LLPs, and AIFs offer considerable flexibility in managing and structuring family wealth, their strategic potential is often undermined by frequent policy changes and a lack of regulatory clarity. While recent policy reforms and tax incentives have positioned GIFT City as a competitive alternative to offshore structures, adoption of the same by Indian family offices remains relatively limited," said Kalpesh Maroo, partner & national head – Deal Advisory – M&A Tax, PE KPMG in India.

As regulations evolve, GIFT city (Gujarat International Finance Tec-City), India's first operational smart city and an International Financial Services Centre (IFSC) holds the potential to emerge as a hub for global and domestic investors. According to the Julius Baer report, recent developments have already enabled the formation and management of investment vehicles under the IFSCA framework, offering a tax efficient and globally competitive platform for asset managers and investors. The GIFT City is expected to deepen India's integration with global financial markets. For investors, it presents an emerging platform for international diversification, tax efficiency and access to sophisticated investment structures. To invest in the domestic equity market, particularly private equity and venture capital, family offices have to adhere to SEBI's AIF guidelines.

"I believe family offices are increasingly becoming a large pool of institutional capital. The structure/tax/legal angles could evolve in future which may more meaningfully foster this massive pool of domestic money to be invested and create the next generations of entrepreneurship in India. This is an evolving landscape," Mariwala explained.

A Bright Future: Not Without Challenges

Family offices offer privacy to family members and their holdings, prioritize internal family goals over external pressures, and provide the flexibility to invest in long-horizon or illiquid assets without the need to chase short-term returns.

Finding skilled professionals and trusted advisors especially in areas like investing, legal matters, and risk management is also tough, with strong competition for top talent. "Many family offices work in isolation, which limits access to good investment opportunities and partnerships. Family offices in India face a range of challenges that can make day-to-day operations and long-term planning more difficult. Changing tax rules, foreign exchange laws, and financial reporting requirements require specialized knowledge, which many family offices may not have in-house. On top of this, geopolitical uncertainty adds risk to cross-border investments, affecting asset values and the ability to move funds," added Kalpesh Maroo.

The future of family offices looks promising as they continue to adapt and lead in wealth stewardship, setting a benchmark for disciplined investment and decision-making processes that will shape their legacies for generations to come.

India's expanding startup ecosystem, marked by a rise in Unicorn startups and an increasing trend of stake sale by family-owned businesses, is driving a sharp increase in UHNIs and fueling a new wave of wealth creation. "This surge in wealth is prompting family offices to evolve from traditional wealth preservation hubs into dynamic, growth-oriented investment platforms. Key trends shaping this transformation include increased allocations to alternative assets such as private equity, hedge funds, private credit, and angel investing, with growing interest across sectors like renewables and emerging technologies. At the same time, many founders are broadening their investor base to include domestic family offices driven by regulatory considerations and the desire to maintain Indian ownership of their companies," explained the KPMG India partner.

With first-generation entrepreneurs focusing on high-return capital strategies and various family office structures offering a streamlined regulatory ecosystem, the future points to more professionally managed, globally integrated, and innovation-driven family offices.