Global Family Offices Favor India Over China as Leading Investment Destination
Global family offices demonstrate a heightened interest in enhancing their investment portfolios in India and China over the next year, as per the '2025 Global Family Office' report released by UBS. The report noted that more than a quarter of family offices, or 28%, are keen to increase their investments in India, a significant upward trend. China follows closely behind with 18% of family offices planning to boost their exposure.
The robust macro-economic indicators and strong domestic growth in India have caught the attention of the family offices, as evidenced by their growing interest. Middle Eastern family offices and those in Europe show the most enthusiasm for investing in India, the report also revealed.
The study surveyed 317 UBS family office clients, with an average net worth of $2.7 billion per family. The family offices managing their funds reported an average of $1.1 billion each. The report suggested a shift in family offices' investment strategies, with a marked preference for developed market equities, offering access to structural growth prospects.
In addition, family offices are increasing their investments in private debt to seek extra yield and are considering increasing their allocations to developed market fixed income, presumably to diversify their portfolios. The report also highlighted family offices' keen interest in healthcare and electrification industries, noting their openness to understand the potential of emerging technologies across public and private market sectors.
Looking ahead, family offices are planning to leverage artificial intelligence (AI) within their operations for purposes such as financial reporting, data visualization, and text analysis over the next five years. On a regional scale, the Asia Pacific single-family offices have experienced a surge since 2019, increasing by 28% to reach 2,290 offices. The region is predicted to outpace North America moving forward, growing by 40% to reach 3,200 family offices by 2030.
India is witnessing a similar upward trend in the development of family offices, with an increasing number of ultra-high-net-worth individuals and startup founders turning to institutional family office structures for wealth management and succession planning. According to recent industry reports, the number of family offices in India has grown nearly sevenfold over the past six years, surging from 45 in 2018 to close to 300 in 2024. This growth is attributed to the booming startup ecosystem and generational wealth transfer in the country, driving the demand for institutional-grade investment strategies and governance solutions.
- As the healthcare industry holds great potential, family offices are expressing a keen interest in exploring investment opportunities in this sector, seeking to capitalize on emerging technologies.
- In the realm of technology, family offices are planning to harness the power of artificial intelligence (AI) within their operations over the next five years, with a particular focus on financial reporting, data visualization, and text analysis.
