look news india
Ahmedabad: The number of family offices in India is increasing rapidly. According to data from consultancy firm PidalBiji, the number of family offices has increased almost seven times in the last six years. In 2018, the number of family offices in the country was only 45 and today in 2024 it has increased to around 300. One of the main reasons behind the increase in the number of family offices in India is that rich people are now adopting a more professional approach to investing.
Individuals or families with extremely high net worth form a family office. These offices manage their assets. The rise in the number of family offices is due to the country's business class diversifying investments, professionalising operations and focusing more on succession planning and philanthropy. According to a study, the volume growth of family offices in India is expected to be at a 14 per cent CAGR over the next three years.
A multi-family office typically consists of several family offices working together. It offers a variety of wealth advisory services. Prominent family offices in India include Narayana Murthy-owned Catamaran Ventures, Premji Invest, Shubhkan Ventures, Natarajan Sekhsaria Family Office and Nadathur Holdings.
Infosys co-founder Catamaran Ventures has investments in Acko, Reddit, SpaceX and ANASE. Azim Premji's Premji Invest has invested in companies including Lenskart, Canva and Deserve.
There is no exact figure of assets under management of family offices, but it is estimated that about $30 billion of assets are managed by family offices in India. This is a very small part of the AUM of global family offices. According to a study by Sundaram Alternatives, the AUM of global family offices is about $6 trillion.