India’s billionaire family offices are increasingly adopting profit-sharing incentives to compete for experienced investment professionals, reflecting the growing battle for talent in the country’s expanding private wealth sector.
Traditionally, family offices relied on fixed salaries and annual bonuses to reward investment teams. However, many are now introducing carried interest—a share of investment profits that is commonly used by private equity and venture capital firms—to better attract and retain top talent.
Established family offices, including those linked to tech billionaire Azim Premji and consumer goods entrepreneur Harsh Mariwala, have already adopted profit-sharing structures. Mariwala’s investment firm, Sharrp Ventures, confirmed it offers carried interest, while several newer family offices are reportedly exploring similar arrangements.
The shift marks a significant change for India’s family office industry. Until recently, carried interest was uncommon, even among the country’s largest family offices. Globally, fewer than one-third of family offices offer long-term incentive plans, with US-based firms leading the way in providing carried interest and co-investment opportunities.
Experts say the change is being driven by intense competition for experienced investment professionals. India has witnessed a rapid increase in family offices as wealth generated through stock market gains, private equity exits and real estate transactions has surged. According to PwC, the number of family offices in India grew from just 45 in 2018 to more than 300 by 2024, with the sector now managing assets exceeding $30 billion.
Tayyab Mohamed, co-founder of executive recruitment firm Agreus, said long-term incentive plans help align investment managers with the long-term goals of family offices while improving staff retention. These incentives can include carried interest, synthetic carry structures or multi-year performance plans linked to portfolio growth.
The shortage of skilled investment professionals has forced family offices to compete directly with venture capital firms, asset managers and investment banks for talent.
Anirudh Damani, managing partner of his family’s Artha Venture Fund, said both the venture fund and the family office have introduced carried interest for associates and senior employees across all departments.
Unlike traditional annual bonuses, carried interest rewards investment teams only when returns exceed a predetermined hurdle rate, creating stronger alignment between employee performance and investment outcomes.
According to Vikrant Agarwal, managing partner at Proxima Capital Services LLP, even family offices managing between $20 million and $100 million are increasingly willing to share 10% to 15% of investment profits with senior investment staff. While such rewards were previously paid as discretionary bonuses, many firms are now formalising them through structured carried-interest programmes.
Compensation expectations have also risen. Smaller family offices typically offer annual salaries of between $40,000 and $60,000 for investment professionals, while experienced candidates increasingly expect pay packages of at least $100,000, usually consisting of a fixed salary combined with performance-based incentives.
One industrial family office based in New Delhi recently introduced a carried interest model for its investment teams after strong returns from private equity and unlisted investments, establishing different carry structures across individual asset classes.
