THE RISE OF FAMILY OFFICES IN INDIA

Although rising fast, the sector has its challenges of securing top talents amid strong competition, frequent policy changes and a lack of regulatory clarity

- BY SHRABONA GHOSH

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 ultrahigh-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 from 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.