Intergenerational Wealth Transfer in India: A $1.3 Trillion Opportunity

The unique demographic trend in India has made it a hotbed of activity for intergenerational wealth transfer and family offices (FOs), which provide investment management, estate and succession planning, tax advisory, and philanthropic advice. A projected $1.3 trillion in wealth is expected to change hands to the new generation over the next 10 years, according to recent reports.

The next generation is driving this change by being more adventurous, globally focused, and impact-oriented. Technology, governance, and sustainability will define the next chapter for family offices in India, said Surabhi Marwah, Partner, People Advisory Services, and Private Client Services Co-Leader, EY India, in a report posted on LinkedIn.

These FOs are increasingly investing in alternative assets such as private equity, real estate, and direct investments in the booming startup industry. They are also opting to sell out during initial public offerings (IPOs) and reinvesting, thus creating a continuous cycle. As a result, they have become one of the biggest forces driving innovation in India, according to the CEO of a large FO based in Mumbai.

FOs are also investing heavily in the latest technology to manage wealth. This has intensified structured FO models for India, which balance tradition with innovation and preservation with growth, according to experts. Hybrid models and governance have become central to these firms. While the most common structure is the single-family office (SFO), there is also a rising demand for multi-family offices (MFOs), which serve multiple families and offer cost efficiencies.

There are models where dozens of families co-invest for a small advisory fee, said one such service provider. Technology is reshaping family offices through rapid adoption of SaaS platforms, AI-driven decision-making, advanced MIS systems, and secure digital infrastructure to manage complex, multi-asset portfolios efficiently, according to EY. Key challenges include navigating complex tax and regulatory frameworks, operational complexities, and cybersecurity risks, which remain significant concerns.

Akash and Anant Ambani are the richest individuals in India with a net worth of ₹3.59 trillion each. Isha Ambani tops the women’s list, according to the 360 ONE Wealth Creators list published mid-June.

The transfer of large wealth to the younger generation among ultra-wealthy (UHNIs) is driving new-age technology adoption and transparency in FOs, a traditionally conservative business. India is witnessing a sharp increase in the number of family offices, from just 45 in 2018 to nearly 300 in 2024, according to Swiss Bank Julius Baer. With approximately 13,000 UHNW families today, expected to grow to 19,000 by 2028, the segment is expanding rapidly. Despite this growth, 41% of families have not formalized their succession plans.

Around 11,000 FOs exist around the world, according to PricewaterhouseCoopers, another of the big-four accounting firms. The US remains the most important target market for FO investments worldwide, with a deal share of 47%, while Europe has lost ground, with its share declining recently.