New Delhi, Family offices are increasingly investing in startups, diversifying their portfolios and seeking higher returns as they move away from traditional investments, according to a PwC India report.
Currently, there are over 300 family offices in India, up from 45 in 2018. The number is expected to increase exponentially, with developers building impressive businesses in Tier 2 and 3 cities, according to the report titled 'Creating Holistic Value for family businesses. ' saying.
Noting that the Indian economy is on a roll, the report says family-owned businesses, both large conglomerates and small and medium-sized enterprises, spanning sectors such as manufacturing, retail, real estate, healthcare and the finances.
"...family offices have catalyzed the creation of jobs, entrepreneurship and a culture of self-sufficiency in the country, unlike those that have gone south due to lack of adaptability, succession planning, innovation and effective governance" , the PWC India report said.
The report details how family offices (FOs) have evolved from wealth preservation units to sophisticated entities driving responsible and impact investments.
Financial organizations are diversifying their portfolios, accessing global opportunities and adopting a global citizenship mindset, a trend that reflects the dynamism and adaptability of their wealth management strategies in response to changing economic landscapes, he added.
Falguni Shah, partner and leader, Enterprise and Private Business, PwC India, said the growing influence of family offices highlights the evolving wealth management and financial advisory landscape in India.
"In recent years, family offices have secured an integral place in India's financial ecosystem, offering specialized services tailored to the unique needs of high-net-worth individuals and business families," Shah said.
Family offices, according to the report, are increasingly investing in startups, diversifying their portfolios and seeking higher returns.
They are moving from traditional investments to strategic risk mitigation and exploring opportunities in emerging markets.
"Among Indian family offices, fintech is a key attraction that raised total funding of $853.6 million in FY23," he said, adding that Indian family offices are also setting up offices abroad to take advantage of global investment opportunities.
One such Indian family office has made several strategic investments in the Indian startup ecosystem, looking for promising startups with innovative business models and disruptive ideas.
Jayant Kumaar, partner, deal leader and family office at PwC India, said family offices in India are transforming wealth management by embracing technology, global diversification and ESG (environmental, social and governance) principles.
"Its evolution from wealth preservation to impactful investing is crucial for sustainable growth and positive social impact. Addressing trust, succession planning and risk management will be key to its success," Kumaar said.
Family offices also face risks such as cybersecurity threats, regulatory compliance and privacy concerns, making it imperative today to have a robust risk management framework in place, according to the report.
Talent acquisition and retention poses another major challenge as it requires family offices to offer competitive salaries, work flexibility and a compelling value proposition to attract qualified professionals, according to the PwC India report.
Currently, there are over 300 family offices in India, up from 45 in 2018. The number is expected to increase exponentially, with developers building impressive businesses in Tier 2 and 3 cities, according to the report titled 'Creating Holistic Value for family businesses. ' saying.
Noting that the Indian economy is on a roll, the report says family-owned businesses, both large conglomerates and small and medium-sized enterprises, spanning sectors such as manufacturing, retail, real estate, healthcare and the finances.
"...family offices have catalyzed the creation of jobs, entrepreneurship and a culture of self-sufficiency in the country, unlike those that have gone south due to lack of adaptability, succession planning, innovation and effective governance" , the PWC India report said.
The report details how family offices (FOs) have evolved from wealth preservation units to sophisticated entities driving responsible and impact investments.
Financial organizations are diversifying their portfolios, accessing global opportunities and adopting a global citizenship mindset, a trend that reflects the dynamism and adaptability of their wealth management strategies in response to changing economic landscapes, he added.
Falguni Shah, partner and leader, Enterprise and Private Business, PwC India, said the growing influence of family offices highlights the evolving wealth management and financial advisory landscape in India.
"In recent years, family offices have secured an integral place in India's financial ecosystem, offering specialized services tailored to the unique needs of high-net-worth individuals and business families," Shah said.
Family offices, according to the report, are increasingly investing in startups, diversifying their portfolios and seeking higher returns.
They are moving from traditional investments to strategic risk mitigation and exploring opportunities in emerging markets.
"Among Indian family offices, fintech is a key attraction that raised total funding of $853.6 million in FY23," he said, adding that Indian family offices are also setting up offices abroad to take advantage of global investment opportunities.
One such Indian family office has made several strategic investments in the Indian startup ecosystem, looking for promising startups with innovative business models and disruptive ideas.
Jayant Kumaar, partner, deal leader and family office at PwC India, said family offices in India are transforming wealth management by embracing technology, global diversification and ESG (environmental, social and governance) principles.
"Its evolution from wealth preservation to impactful investing is crucial for sustainable growth and positive social impact. Addressing trust, succession planning and risk management will be key to its success," Kumaar said.
Family offices also face risks such as cybersecurity threats, regulatory compliance and privacy concerns, making it imperative today to have a robust risk management framework in place, according to the report.
Talent acquisition and retention poses another major challenge as it requires family offices to offer competitive salaries, work flexibility and a compelling value proposition to attract qualified professionals, according to the PwC India report.
