Six Key Venture Capital Trends to Watch in 2025

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With 2025 activity well under-way, the venture capital landscape is poised for a dynamic resurgence, teeming with opportunities despite lingering economic uncertainties. The global venture capital investment market is projected to reach approximately $764.78 billion by 2029, with it growing from $301.78billion in 2024 to $364.19 billion in 2025[1].

On top of that, VC fundraising activity is also expected to surpass 2024 levels in 2025 with capital to be raised for this year projected at approximately $90 billion, compared with $71 billion in 2024 through mid-November[2].

In 2025, the biggest opportunities for venture capital are in transformative technologies like artificial intelligence (AI), which is dominating investment activity. While healthcare and sustainability are also attracting attention, the expansion of AI applications into these areas is further driving investment growth. Green technologies, spurred by ESG mandates and climate-conscious investors, are gaining momentum as governments prioritise sustainability goals. Meanwhile, healthcare innovation continues to attract substantial funding, with startups focusing on digital health, personalised medicine, and biotech breakthroughs leading the charge.

For VC investors, 2025 presents a year of recalibration and opportunity, where strategic investments in high-growth sectors could yield significant returns. Here we layout the six key trends that highlights how the industry is evolving and where the focus is shifting.

1. AI investment surge

At the end of 2024, venture capital investment in artificial intelligence (AI) reached unprecedented levels. VC activity in generative AI has grown exponentially since the release of OpenAI’s ChatGPT in late 2022. In 2024, this trend reached new heights with global venture capital investment in GenAI reaching around $45 billion in 2024, up from $24 billion in 2023[3]. This momentum is fuelled by the transformative potential of GenAI across various sectors, from healthcare to finance. As AI continues to innovate and find commercial applications, venture capital is increasingly pouring into the sector, marking 2024 as a milestone year in AI investment. Read more on this trend in EY’s article here.

2. The rise of mega-deals and emerging unicorns

The proliferation of unicorns—private startups valued at over $1 billion—continues to be a focal point of venture capital activity. Globally, the number of unicorns surpassed 1,200 by May 2024[4], with some hectocorns valued at over $100 billion, such as ByteDance (the Chinese company behind TikTok)[5]. However, Europe’s unicorn herd experienced limited growth in 2024. According to PitchBook, only 14 startups in Europe reached unicorn status last year, the same as in 2023 and down nearly 70% from the peak in 2022[6].

This stagnation reflects tighter market conditions and cautious investment strategies. Nevertheless, venture capitalists are optimistic about a rebound in dealmaking and valuations in 2025, particularly driven by the thriving AI sector. Many anticipate a renewed surge of European startups crossing the €1 billion valuation threshold this year, with AI companies leading the way.

3. Healthcare innovation continues to thrive

Venture capital is pouring into healthcare innovation, with startups focused on digital health, personalised medicine, and biotech breakthroughs leading the charge. These advancements are not only improving patient care but also reshaping the future of healthcare systems globally. As the sector evolves, the intersection of AI and healthcare is expected to attract further investment, offering huge growth potential for innovative startups in 2025.

4. Momentum in green technologies

Green technologies are gaining increasing momentum, driven by ESG mandates and a wave of climate-conscious investors. With governments prioritising sustainability goals, the demand for clean energy, carbon capture, and sustainable infrastructure solutions is expected to rise sharply. As the market matures, startups in these sectors are attracting substantial venture capital, offering huge potential for growth in 2025.

5. Private wealth fuelling emerging VC firms

Private wealth is becoming an increasingly vital source of capital for emerging venture capital firms. Family offices and high-net-worth individuals are allocating significant portions of their portfolios to private markets, providing a lifeline for up-and-coming VCs. This trend is expected to continue, with private wealth set to deploy approximately $7 trillion to private markets by 2033[7]. These trends underscore the evolving nature of the VC landscape, highlighting areas where innovation and investment are converging to shape the future.

6. Channel Islands offering speed to market for VC funds

The choice of fund domicile is playing an increasingly critical role in VC fund establishment, with the Channel Islands and Luxembourg leading the way. For emerging managers, jurisdictions like Guernsey and Jersey are appealing due to their simplicity, investor familiarity, and speed to market. These jurisdictions offer a lower-cost and less administratively burdensome alternative to some European domiciles while maintaining high regulatory standards.

Guernsey, in particular, remains a premier jurisdiction for European venture capital funds. Twice as many VC funds were raised in Guernsey during 2022-2023 as compared to the next most popular jurisdiction. Its appeal lies in a responsive regulatory environment, a deep talent pool, and an ecosystem that fosters innovation.

A year of renewed optimism

This year venture capital is primed for a year of renewed optimism, with transformative technologies, healthcare innovation, and green technologies leading the way. As AI continues to dominate, sectors like biotech and sustainable solutions are seeing increasing investments, driven by both global demand and evolving market dynamics. With this backdrop, 2025 could very well be the tipping point for a new era of investment-driven transformation.

As a leading fund administrator, Belasko have deep experience supporting VC managers. Our partnership-driven approach, under-pinned by leading technology, offers end-to-end fund administration solutions tailored to support your optimal operating model. Get in touch if you’d like to discuss how Belasko can support your journey: [email protected].

[1] https://www.thebusinessresearchcompany.com/report/venture-capital-investment-global-market-report

[2] https://pitchbook.com/news/articles/vc-outlook-fund-distributions-will-rebound-in-2025

[3] https://www.ey.com/en_ie/newsroom/2024/12/venture-capital-investment-in-generative-ai-almost-doubles-globally-in-2024-as-momentum-accelerates-in-transformative-sector

[4] https://www.cbinsights.com/research-unicorn-companies

[5] https://www.forbes.com/councils/forbesfinancecouncil/2024/11/19/five-critical-venture-capital-trends-to-watch-in-2025/

[6] https://pitchbook.com/news/articles/europes-soonicorns-who-will-reach-a-1b-valuation-in-2025

[7] https://pitchbook.com/news/articles/private-wealth-offers-lifeline-for-emerging-vcs

Belasko Appoints Paul Nayar as Chief Financial & Operations Officer

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[Jersey, Channel Islands – 20 January, 2025] – Belasko is pleased to announce the appointment of Paul Nayar as Chief Financial & Operations Officer (CFOO), effective 2 January, 2025. Based in the Jersey office, Paul will play a pivotal role in driving Belasko’s strategic objectives and operational excellence.

Paul brings over 30 years’ experience in the international finance industry, with an extensive track record in senior leadership roles. Most recently, he served as Group Chief Financial Officer at Crestbridge Group, where he led the financial strategy that underpinned significant organic growth. His career also includes leadership positions at Zedra, Santander, and RBS International.

With a deep understanding of multi-jurisdictional businesses operating in dynamic global markets, Paul excels in shaping strategic agendas and delivering impactful results through a collaborative, client-focused approach.

Belasko’s CEO, Edward Green, expressed his enthusiasm for Paul’s appointment:
“We are thrilled to welcome Paul to Belasko. His wealth of experience, strategic insight, and leadership capabilities make him an invaluable addition to our team. As we pursue ambitious financial, commercial, and operational goals for 2025 and beyond, Paul’s expertise will be instrumental in elevating our platform and delivering exceptional client service through our talented people.”

Paul Nayar also shared his excitement about joining Belasko:
“I am delighted to join Belasko at such an exciting time in its journey. I look forward to collaborating with the team to build on the firm’s strong foundation and help drive its strategic vision.”

Paul’s appointment marks an exciting chapter for Belasko as the company continues to expand its footprint and innovate across its service offerings.

About Belasko

Belasko is a leading fund and fiduciary firm specialising in fund administration, corporate services, and private wealth solutions. Operating across multiple jurisdictions, Belasko delivers tailored, tech driven, high-quality services to global fund managers, high-net-worth individuals, families, and entrepreneurs.

For media inquiries, please contact:
Alice Heald
Group Head of Marketing, Belasko
[email protected]

Belasko 2024: Year in Review

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Belasko 2024: Year in Review

As the year draws to a close, our CEO Ed Green, takes a moment to reflect on Belasko’s performance and achievements in 2024.

I am pleased to report on a period of growth, innovation, and dedication across all areas of Belasko. Despite a challenging global environment, our achievements underscore the strength of our strategy, the commitment of our team, and the trust placed in us by our clients.

Strong financial performance

2024 has been another strong year for the business. We are finishing the year with significant revenue growth, reflecting a consistent double-digit compound annual growth rate (+25% over the past five years), supported by a robust operational presence across our four strategic European locations in the UK, Luxembourg, Jersey, and Guernsey. With growth being a key focus this year, we’re proud to have secured a number of significant new mandates joining the Belasko family.

As a business, we administer over $12 billion in assets reinforcing our position as a trusted partner for a global client base, backed by a dedicated workforce of over 120 talented professionals.

Continuing to build our technology and people platform

Belasko’s commitment to innovation and excellence remains at the forefront as we strengthen both our technological capabilities and our people-first approach.

This year, we launched our Belasko Client Portal, marking a transformative step in how clients access and manage their investments. The portal offers a seamless and secure digital experience, reaffirming our dedication to delivering cutting-edge solutions that simplify and enhance client interactions.

We’ve also made strategic investments in strengthening our team with notable hires in extending our fund accounting, technological innovation and marketing capabilities, bringing fresh perspectives and expertise to support our growth. These additions underline our focus on cultivating talent and ensuring that our workforce remains a driving force behind our success.

Moreover, we are proud to be advancing towards ISAE 3402 accreditation, a testament to our unwavering commitment to operational excellence, governance, and trust.

A people-first approach

At the heart of Belasko’s success is our people. This year, we’ve achieved a high retention rate of 84% highlighting that we continue to be a workplace where employees feel valued and supported.

The launch of our People & Culture Taskforce has further strengthened our internal community and has helped foster engagement, encourage collaboration across offices, and champion work-life balance initiatives. Among these was the STEPtember challenge where our teams logged an impressive 10.7 million steps – the equivalent of walking from London to Hong Kong! Beyond the numbers, it reinforced a spirit of camaraderie and promoted physical and mental well-being.

We’ve strived to continually support our team, enhancing employee benefits and introducing some additional initiatives aimed at improving work-life balance such as Flexi-Fridays and birthday holiday allowance.

Through our Belasko in Society initiative, we also focused on giving back. Partnering with Magic Breakfast, we raised funds equivalent to providing 285 weeks of breakfasts to a child or meals for 65 children for one month, supporting young learners in need.

Together, these efforts underscore Belasko’s dedication to being a people-first organisation.

Reaching new milestones

This year saw the opening of our London office, a significant step forward in our growth journey and a reflection of our ambition to grow alongside our clients.

Commitment to sustainability

Belasko’s commitment to sustainability remains a cornerstone of our operations. Our 2023 Sustainability Report, developed with Terra Instinct, highlighted key achievements, including maintaining low carbon emissions as part of our efforts to reduce our impact on the planet. With a workforce that is 49% female, we continue to champion diversity and inclusion while striving to minimise our environmental footprint.

Enhancing visibility in the market

Belasko’s presence and influence in the industry have grown significantly this year, thanks to strategic partnerships and active participation in key events and associations.

Our partnership with the BVCA has been a cornerstone of this strategy. By sponsoring three of their flagship events, including the Annual Summit and the Tax Policy Conference, we’ve positioned ourselves alongside leading voices in the private equity and venture capital space. This collaboration has provided invaluable opportunities to connect with industry leaders, showcase our expertise, and contribute to shaping discussions on critical topics impacting the sector.

We have actively engaged with local industry associations in Jersey, Guernsey, and Luxembourg, staying ahead of market trends and regulatory changes while strengthening our networks and sharing insights.

Belasko are also proud to have recently been awarded the Channel Islands Wealth Briefing Award for Client Lifecycle Management. This recognition reflects the success of our innovative approach to supporting clients through every stage of wealth creation, preservation, and transition.

Looking ahead to 2025

As we look to the future, I am excited about the opportunities that lie ahead. Our growth trajectory is hugely promising, and we are eager to expand our reach and capabilities while maintaining the high standards of service that define Belasko. Together, we will continue to build on our success, delivering exceptional value to our clients and stakeholders in 2025 and beyond.

Luxury and beyond: the role of lifestyle management for HNWIs

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High-net-worth (HNW) families and individuals often lead dynamic and complex lives, balancing professional commitments, personal interests, and diverse family priorities. According to Julius Baer’s Lifestyle Index, HNWIs are shifting toward experiential spending, prioritising meaningful travel and leisure activities that align with their personal values. This includes sustainable travel and experiences that combine luxury with impact, such as philanthropic or ESG activities.

Research highlights the increasing demand for personalised concierge and lifestyle management among HNWIs. A 2023 report by Knight Frank[1] indicated that 69% of ultra-high-net-worth individuals (UHNWIs) are focused on safeguarding their wealth and legacy, with concierge services playing a vital role in achieving these goals.

A structured approach to concierge services focuses on defining annual activities, reporting frameworks, and payment schedules to meet family needs. Luxury lifestyle consultancy Quintessentially[2] reported a 30% rise in demand for bespoke concierge services post-pandemic, reflecting a shift towards outsourcing complex personal and professional tasks.

In this article, we ​highlight how partnering with providers who offer a breadth of knowledge and support across concierge and lifestyle services can give tailored support that ensures seamless management of daily responsibilities, luxury assets, and long-term goals.

The demand for concierge and lifestyle needs

  • Emigration assistance: Supporting families with relocation logistics, immigration processes, and integration into new communities, ensuring a smooth transition across jurisdictions and enabling mobility overseas for HNWIs.
  • Global travel assistance: Offering bespoke travel planning and comprehensive logistics management, tailored to the specific needs and preferences of each client. Covering everything from creating luxurious itineraries with exclusive accommodations, private jet charters, and bespoke experiences, to managing last-minute changes or unforeseen circumstances.
  • Property oversight and management: HNWIs require comprehensive property management, ensuring residential and investment properties are meticulously maintained, staffed, and financially overseen. This includes scheduling regular maintenance, managing staff like security and housekeepers, and handling budgeting for upkeep, taxes, and insurance. Additionally, it involves ensuring compliance with local regulations and optimising rental income or investment returns, providing peace of mind and protecting the value of each property.
  • Family support: Engaging with families on a deeper, more personal level to address unique needs. This can cover anything from university arrangements for children or support for hobbies like equestrian activities or specific sports.
  • Luxury asset management: Expertise in overseeing and maintaining luxury assets collected and owned by a HNW family. This could include anything from aircraft, marine vessels/yacht management and high-value art collections, ensuring proper care, compliance, and insurance.
  • Private banking and tax support: Coordinating with private banking institutions and providing insights into global tax planning to optimise financial outcomes.
  • ESG integration: Advising families on how to embed ESG principles into wealth planning and investments, aligning financial strategies with sustainable values.

The Belasko solution

At Belasko, we provide comprehensive concierge and lifestyle management services, designed to enhance the lives of our HNW clients. Our key offerings include:

  • Lifestyle and travel planning: Crafting bespoke itineraries and managing travel logistics with precision.
  • Technology and data security: Implementing robust systems to safeguard sensitive family information.
  • Reducing friction in everyday life: Streamlining administrative and operational tasks to allow families to focus on their passions and priorities.
  • Family education and governance: Providing guidance on succession planning, financial education for the next generation, and establishing effective governance structures.
  • Administrative and personal support: Handling everything from scheduling and correspondence to arranging bespoke services and events.
  • Art and collectibles management: Offering expertise in curating, insuring, and managing high-value collections.

Enhancing everyday life

By offering a blend of practical support and personalised services, we ensure that HNW families can focus on what matters most—their goals and passions as well as wealth preservation and enjoyment. Whether navigating complex tax regulations, managing luxury assets, or integrating ESG values into wealth planning, our team is committed to taking the friction out of everyday life and providing exceptional value.

Through our holistic and tailored approach, Belasko delivers peace of mind, enabling families to embrace opportunities and enjoy a fulfilling lifestyle with the confidence that every detail is carefully managed.

If you’d like to find out how we can support you, get in touch with Ross Youngs ([email protected]).

[1] https://www.knightfrank.com/wealthreport

[2] Quintessentially Lifestyle Trends Report: https://www.quintessentially.com

Navigating the future: end of year reflections and expectations for the private capital markets in 2025

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As 2024 comes to a close, the private capital fund industry stands as a cornerstone of the global economy, having grown exponentially over the past decade. Today, private markets account for a significant portion of global financial activity, and in 2025, their AUM is projected to reach up to $15 trillion[1].

This growth trajectory underscores the critical role private markets play in financing businesses, driving innovation, and generating returns for investors across the globe. The sector’s ability to raise and deploy capital efficiently, even amidst volatile market conditions, demonstrates its resilience. In 2024, despite macroeconomic challenges and geopolitical uncertainties, private capital provided essential liquidity and investment across a spectrum of opportunities, including secondary markets, private credit, and venture-backed start-ups.

However, regulatory reforms, ESG priorities, liquidity pressures, and geopolitical developments have redefined the operating environment. As we reflect on 2024, we see a year of transformation that has set the stage for private markets to adapt, innovate, and remain a vital force in the global economy heading into 2025.

A year of political turbulence

Leadership transitions

The political environment in 2024 was defined by seismic changes. In the UK, the Labour government’s ascent marked a shift toward fiscal tightening and tax reforms aimed at addressing public sector deficits. Across the Atlantic, Donald Trump’s re-election as U.S. President introduced uncertainties around trade and foreign policy. These leadership transitions underscore the interplay between politics and private markets, as fund managers and investors brace for policy decisions with global implications.

Goldman Sachs predicts that the U.S. administration’s proposed tariffs will weigh heavily on Eurozone growth, particularly as trade policy uncertainty disrupts cross-border flows[2]. Combined with the Labour government’s reformist agenda in the UK, private markets must remain vigilant and flexible as they navigate a time of change.

Carried interest: A new taxation era in the UK

Under the Labour government, the carried interest regime will transition from being taxed as capital gains to trading income, a move designed to align taxation norms with global benchmarks. The capital gains tax hike to 32% adds another layer of complexity, particularly for non-UK residents providing services to UK-based funds. The regime change will place the UK with one of the highest tax rates in respect of carried interest across the global and will require careful consideration by private capital managers.

Liquidity and fundraising: evolving strategies in challenging conditions

Challenges in fundraising

The fundraising environment remained difficult throughout 2024. The number of new funds dropped by 24% to 189 form the second quarter to the third quarter – but deals and exits are starting to show some stability[3] as we point toward 2025. Demand for credit funds, particularly those offering evergreen structures with predictable cash yield, have continued to grow, driven by investors seeking safe havens amid volatile equity markets.

Secondary markets and liquidity tools

Secondary markets gained unprecedented traction, supported by an expanding suite of liquidity platforms. The market now boasts over 25 platforms, enabling fund managers to provide enhanced liquidity options to investors. These tools are particularly valuable in navigating constrained capital conditions, offering fund managers greater flexibility while aligning with investors’ liquidity needs.

In the first half of 2024, GP-led transactions accounted for $31 billion, making up 43% of the total secondary market volume[4]. This reflects a 94% increase compared to the same period in 2023, driven by strong demand for continuation funds and the adoption of GP-led structures by sponsors seeking liquidity for LPs and extended holding periods for valuable assets​.

Unlocking pension fund capital

Pension fund reforms remain a hot topic, particularly in the UK. Defined contribution (DC) schemes face structural barriers in allocating to private capital due to liquidity constraints and valuation complexities. However, innovative managers aligning their strategies with these requirements stand to unlock significant capital flows and solving these issues may be critical to maintaining the UK’s competitiveness in private markets.

Geopolitical spotlight: regional dynamics in private capital

All of the key European fund domiciles offers excellent coverage across all investment strategies however we have highlighted some of the key themes specific to each jurisdiction that we have observed this year.

Jersey: a gateway for global investment

Jersey’s reputation as a strategic hub for cross-border fund structuring continues to grow. The island has positioned itself as a key conduit for Asian investment into Europe, supported by strong regulatory frameworks and a global connectivity strategy. Jersey continues to apply a focus towards U.S. managers for launching funds aimed at European markets, underscoring its importance as a gateway jurisdiction.

In addition, investor demand for tokenisation is increasing as investors seek more control and transparency over their assets. Tokenisation allows for the fractionalisation of assets, enabling investors to access opportunities traditionally reserved for larger institutional players. In 2021, the sector stood at around US$1.9bn, growing to US$2.8bn in 2023 and US$3.45in 2024 so far. Aggregated, assets currently stand at around US$13bn with the expectation that the sector will rise into the trillions (USD) by 2030[5].

Guernsey: innovation for venture and buyouts strategies

Guernsey remains the premier jurisdiction for European venture capital (VC) funds, with twice as many funds raised in Guernsey during 2022-2023 as compared to the next most-popular jurisdiction[6]. Leveraging its broad diversity of experience and skills, whilst offering familiarity to managers and investors, Guernsey is an ideal jurisdiction for new managers looking to launch a first-time, spin-out or buyout venture fund. Its appeal lies in a responsive regulatory environment, a deep talent pool, and an ecosystem that fosters innovation. Similarly to Jersey, Guernsey recognises the role that tokenisation could play in improving efficiency with capital markets[7].

Luxembourg: growth through private debt

Luxembourg solidified its role as a hub for private debt funds in 2024, with credit sublines playing a pivotal role in optimising IRRs and portfolio management flexibility. As borrowing costs rise, fund managers are leveraging these facilities to balance NAV growth with capital efficiency. Looking ahead, private debt strategies remain critical, offering resilience in a high-rate environment.

ESG: A rebounding priority

Despite a cooling in ESG fundraising during 2023, 2024 has seen a resurgence globally, with $55 billion raised by April alone[8], signalling renewed investor interest. ESG strategies are increasingly viewed as a means of balancing returns with risk mitigation, given their lower performance variance compared to non-ESG funds.

With ESG AUM projected to reach $33.9 trillion globally by 2026[9], fund managers must continue integrating sustainable practices to attract investor capital and align with regulatory expectations.

Operational excellence: scaling for success

Fund managers face increasing pressure to scale their operations without sacrificing efficiency. Collaboration with third-party fund administrators has become essential, allowing managers to streamline compliance, reporting, and deal execution processes. This approach enables fund managers to focus on value creation while mitigating operational bottlenecks—a critical consideration for scaling venture and private equity funds.

This year, we released a whitepaper which addressed how outsourced models are changing.  Whilst managers face increasing pressures to enhance performance, reduce costs and manage risks effectively, we share how partnering with expert providers, like us, you can simplify administration solutions for your business. Read the whitepaper here.

A bearish outlook for 2025

While modest growth is expected for the private capital industry in 2025, the path ahead isn’t expected to be without challenge despite interest rate cuts, particularly in the U.K. and U.S., could provide much-needed relief to fund managers and investors. According to Goldman Sachs[10], the U.S. economy is expected to see a 2.5% growth in GDP, beating expectations. However, this positive growth is likely to be offset by geopolitical tensions, such as the ongoing effects of trade policy uncertainty linked to U.S.

Changes in tax regimes are likely to influence investor behaviour and could impact deal flow and fund strategies. This combined with global economic uncertainties, will require private capital fund managers to adjust quickly and embrace a more agile operational model.

For fund managers, adaptability will be key. Embracing technology, integrating ESG considerations, and refining operational models will position firms for success in an environment that demands innovation and resilience. As private capital markets evolve, opportunities will emerge for those who can navigate the complexities of 2025 with flexibility and foresight.

As a leading fund administrator, Belasko remains committed to supporting our clients in navigating any change or uncertainty that 2025 may bring, as well as offer tailored solutions to help fund managers thrive and avail of new opportunities on the horizon. To discuss in more detail, please reach out to Nick McHardy, our head of funds, at: [email protected].

[1] https://www.spglobal.com/en/research-insights/market-insights/private-markets

[2] https://www.goldmansachs.com/insights/goldman-sachs-research/macro-outlook-2025–tailwinds–probably–trump-tariffs

[3] https://www.preqin.com/insights/research/quarterly-updates/q3-2024-private-equity#:~:text=Q3%20proves%20we%20are%20in,and%20exits%20are%20showing%20stability.&text=Download%20PDF-,Q3%20proves%20we%20are%20in%20a%20more%20challenging%20fundraising%20environment,and%20exits%20are%20showing%20stability.

[4] https://www.blackrock.com/institutions/en-us/insights/market-update-h2-2024

[5] https://www.jerseyfinance.je/news/investor-demand-for-control-will-drive-tokenisation-agenda-but-education-and-collaboration-are-key/

[6] https://www.guernseyfinance.com/industry-resources/news/2024/venture-capital-trends-guernsey-takes-the-lead/

[7] https://www.guernseyfinance.com/industry-resources/news/2024/gfsc-policy-statement-approach-to-fund-tokenisation/

[8] https://www.preqin.com/esg/esg-in-alternatives

[9] https://www.pwc.com/gx/en/news-room/press-releases/2022/awm-revolution-2022-report.html

[10] https://www.goldmansachs.com/insights/goldman-sachs-research/2025-us-economic-outlook-new-policies-similar-path

Why Managers Should Consider Jersey for Their Next Fund

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If you are considering setting up a private, closed-ended fund, Jersey offers a robust and attractive environment for fund managers. With over 60 years of experience, Jersey is a leading player in the global finance sector, providing a range of benefits for those looking to domicile their funds. This article explores why you should give Jersey serious consideration for your next private closed-ended fund and how partnering with experienced providers can support you with your fund’s growth and achieve your launch objectives.

Why choose Jersey for your next fund?

Jersey offers a highly attractive taxation environment for funds, which is a significant advantage for managers. There is no capital gains tax, and funds are typically not subject to Jersey income tax, provided they meet certain criteria. Additionally, there is no withholding tax on interest payments and distributions, and no stamp duty is levied on the transfer of shares. This favourable tax regime enhances the overall return on investment for fund managers and investors alike, making setting up a Jersey fund particularly appealing.

Funds domiciled in Jersey can be marketed into the European Economic Area (EEA) under the National Private Placement Regime (NPPR). This regime simplifies access to European investors without the complexities and significant costs associated with the EU’s Alternative Investment Fund Managers Directive (AIFMD). Additionally, Jersey offers unrestricted marketing into North America, the Middle East, and the Asia-Pacific (APAC) regions, providing easy and broad market access for fund managers.

Jersey is particularly known for its expertise in alternative investments, such as private equity, real estate, private credit and infrastructure. The Jersey fund industry has developed deep legal, tax, accounting, administration, and governance expertise to support these investments, making Jersey a preferred jurisdiction for fund managers specialising in alternatives.

As of the latest reports, Jersey’s funds industry manages an impressive £452 billion[1] in assets (as at March 2024). This substantial figure reflects the strength and capability of Jersey funds to support large and complex investment structures, and is a significant vote of confidence from managers, large or small.

The Jersey funds industry is internationally recognised for its strong legal and regulatory framework, which has been developed over decades to meet the needs of global investors. The recent Jersey MONEYVAL Mutual Evaluation report[2] highlights Jersey’s effectiveness in preventing financial crime, showcasing its commitment to high compliance standards and reinforcing the trust and security that investors seek.  The resultant ‘white-listing’ by the Financial Action Task Force (FATF), underscores its commitment to anti-money laundering and counter-terrorist financing. This robust reputation makes Jersey a secure choice for fund managers seeking a reliable and well-regulated domicile.

Collectively, these characteristics reinforce Jersey’s status as a leading finance centre.

Regulatory options in Jersey

One of the major advantages of setting up a Jersey fund is the flexibility of regulatory options available. Jersey’s regulatory regime is divided into three main categories:

  • Notification Only Fund: This option provides a middle ground with moderate regulatory oversight, suitable for certain types of investment strategies and where “Eligible Investor” criteria can be met.
  • Jersey Private Fund (JPF): Offers a faster route to market, ideal for managers who value speed to market or want to limit the number of offers and admitted investors and for Family Offices looking to manage inter-generational wealth succession.
  • Collective Investment Fund: A fully regulated option by the Jersey Financial Services Commission (JFSC) that allows for unrestricted marketing and no cap on investor numbers provided they meet the criteria for an “Expert Investor”.

These options give fund managers the flexibility to choose a regime that aligns with their specific needs and strategies, making Jersey a versatile choice for domiciling your next fund.

Delve a little deeper into the regulatory options in Jersey by checking out our regulatory options comparison (Jersey Regulatory Options Comparison).

Key considerations for fund managers

With Jersey presenting a wealth of benefits, there are some key considerations that fund managers should keep in mind to ensure a successful experience. Jersey has a comprehensive legal and regulatory environment that can accommodate differing needs of managers, including a range of legal entity options for their fund structure. By far the most common choice is a Limited Partnership and Jersey has adopted modern Limited Partnership legislation to meet the needs of private capital fund managers and their investors. This can accommodate a traditional limited partnership structure or Separate and/or Incorporated Limited Partnerships.  In addition, Jersey can offer Unit Trust vehicles and corporate entities, either limited liability or protected / incorporated cell companies.

Additionally, Jersey encourages investment management and oversight activities to be sufficiently supported by a suitable fund promoter. This collaborative approach not only ensures effective local management and control but also enhances the fund’s operational integrity. Developing close partnerships with Jersey service providers, will help facilitate smoother operations and stronger connections and many private capital fund managers might therefore seek an appointment to the board of the fund’s governing entity. Depending on the regulatory option chosen for your fund, this may require the pre-approval of the JFSC.

Cost will be a key factor in the decision of where to establish your next fund. Focusing on the specific needs of your fund, how many investors you are targeting, where they are based and what reporting requirements you want to be tied to will have material impact on the potential costs. Jersey offers the right balance of available expertise, balanced compliance and regulatory requirements and choice of partner to ensure that you can achieve the right value for money outcome.

By embracing these considerations, fund managers can strategically position themselves to leverage Jersey’s strengths and contribute to its continued growth as a leading fund jurisdiction.

Belasko in Jersey

Jersey offers a mix of regulatory flexibility, market access, and specialised expertise, making it an attractive jurisdiction for fund managers. However, managers should collaborate closely with legal counsel and local administrators, like Belasko, so you can leverage Jersey’s advantages and realise your objectives for your next fund.

We have a team of experts based in Jersey who provide responsive, accurate and consistent support to global fund managers. We offer a full-scope, tailored fund administration solution, designed to drive performance throughout the fund lifecycle. Our tech-enabled solution is built on processes and procedures, led by experienced teams, that free you up to focus on what you do best.

With a deep understanding of the Jersey regulatory landscape and strong relationships with local law firms and advisers, we’re ideally positioned to help clients navigate the complexities of private capital investments with confidence.

If you’d like to speak to our team about setting up your fund in Jersey, please get in touch with Paul Lawrence at [email protected].

 

[1] https://www.jerseyfinance.je/jersey-the-finance-centre/sectors/funds/

[2] https://www.jerseyfsc.org/industry/international-co-operation/international-assessments/moneyval/2024-moneyval-evaluation/

Belasko wins WealthBriefing Channel Islands Award

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Leading wealth management industry participant, Belasko has been selected as a winner in the ‘Client Lifecycle Management’ category at The WealthBriefing Channel Islands Awards 2024.

Showcasing ‘best of breed’ in the Channel Islands region, the awards have been designed to recognise outstanding organisations grouped by specialism and geography which the prestigious panel of independent judges deemed to have ‘demonstrated innovation and excellence during the last year’.

Each of these categories is highly contested and is subject to a rigorous process before the ultimate winner is selected by the judges. It is this process that makes WealthBriefing Channel Islands awards so prized amongst winners.

Participants around the world recognise that winning awards is particularly important in these challenging times as it gives clients reassurance in the solidity and sustainability of the winner’s business and operating model.

Commenting on the firm’s triumph, James Michel, Private Wealth Director, said:

“Winning this award validates our commitment to excellence and bolsters our reputation as a leading private wealth provider. It enhances our visibility among prospective clients and our intermediary network, strengthens our position in competitive markets and will hopefully open doors to new opportunities and partnerships. Our team’s expertise and dedication are at the heart of our success and their collaboration and shared commitment to client success have cemented Belasko’s reputation for excellence.”

Stephen Harris, ClearView Financial Media’s CEO, and publisher of Wealthbriefing, was first to extend his congratulations to all the winners “Every category winner and highly commended firm has been subjected to rigorous and independent judging process and be rightly proud of the success they have achieved this year. “We have seen a marked increase in entrants and interest in all our global awards programmes and Wealthbriefing MENA is no exception. These awards are so beneficial as they give organisations and individuals the opportunity to clarify their strategic thinking, have it independently validated, be recognized internally and externally and to celebrate in style with their peers.

I offer my congratulations and best wishes for the future to all winners and highly commended firms – they are all worthy recipients who join the elite list of wealth management professionals who form global elite of Wealthbriefing Channel Islands winners”.

Winners and highly commended companies were announced on 5 December 2024 at The Royal Yacht Hotel.

If you’d like to find out more about our private wealth service offering in the Channel Islands, please get in touch with Ross Youngs ([email protected]).

Leveraging expertise for entrepreneurial success and dynastic wealth protection

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In today’s rapidly globalising world, entrepreneurs and wealthy families are seeking innovative solutions for scaling their businesses, optimising tax structures, and safeguarding wealth across generations. Offshore structures, when used strategically and in compliance with regulations, offer one such powerful approach. These structures, including offshore trusts, holding companies, and private foundations, can not only help entrepreneurs maximise their assets but also ensure that family wealth transcends generations.

Below, Andy Bailey, our head of private wealth, explores the benefits and considerations for using offshore structures to support entrepreneurial ambitions and protect dynastic wealth.

  1. Asset Protection and Risk Management

The fast pace of entrepreneurial ventures often entails substantial risks, from market fluctuations to lawsuits. Offshore structures, like an offshore trust, can shield assets by holding them in a jurisdiction separate from the entrepreneur’s primary location. This can make it more difficult for creditors to access personal assets in the event of legal action, providing an essential layer of protection, helping entrepreneurs safeguard their personal wealth.

Entrepreneurship remains a primary driver for wealth creation, particularly for those reaching ultra-high-net-worth (UHNW) status. A study revealed that 75% of individuals with assets over $30 million have backgrounds in entrepreneurship[1], underscoring the importance of asset protection strategies for those with substantial, self-made wealth​.

Establishing offshore holding companies allows entrepreneurs to centralise their intellectual property (IP) rights, patents, or brand assets in jurisdictions with robust legal protections, further enhancing security against market volatility and operational risks.

  1. Tax Efficiency and Global Diversification

For entrepreneurs and families with cross-border activities, tax efficiency is crucial to achieving sustained wealth growth. Offshore structures can be invaluable tools for managing tax obligations. Jurisdictions like the Channel Islands, Cayman Islands, the British Virgin Islands, and Singapore offer tax benefits, such as low or zero corporate taxes, to companies registered within their borders. By leveraging such offshore jurisdictions, businesses can lower tax liabilities legally and redirect those funds toward growth initiatives.

Given the anticipated $84 trillion wealth transfer over the next two decades[2], HNWIs and families are increasingly seeking ways to retain more wealth across generations through structured, tax-efficient offshore vehicles. In recent years, private equity has become a favoured investment vehicle for entrepreneurs, with a significant number of new HNWIs utilising it for wealth diversification. This is especially true in emerging markets, where wealth creation through entrepreneurship has accelerated, notably in regions such as Asia and the Middle East​[3].

Offshore trusts and family foundations are popular for inheritance planning, helping families avoid estate and inheritance taxes, thereby preserving a larger share of wealth for heirs. Dynastic wealth preservation benefits similarly from these structures. Offshore trusts or private family foundations can provide tax-efficient solutions for wealth transfer and inheritance planning. Many jurisdictions allow families to avoid estate taxes or inheritance taxes, ensuring that a larger share of the family fortune is passed down to heirs without significant erosion from taxes. However, it’s essential to work with tax advisors to structure these vehicles in full compliance with international regulations and reporting standards, as tax authorities worldwide are increasingly scrutinising offshore holdings.

  1. Privacy and Confidentiality

High-net-worth (HNW) entrepreneurs and families often prioritise privacy. Offshore structures, especially trusts, foundations, and private investment companies, offer a degree of confidentiality, as they’re governed by jurisdictions with strong privacy laws. While global reporting requirements are increasing, according to the Economist Intelligence Unit, over 60% of HNW families still view jurisdictional diversification as crucial, enabling them to protect sensitive family wealth information from external scrutiny, political instability, or public exposure[4].

While financial transparency initiatives have increased global reporting requirements, some jurisdictions continue to offer robust protections that minimise public exposure of ownership and investment activities.

Privacy becomes even more significant when protecting dynastic wealth. With multiple generations and often complex familial dynamics involved, safeguarding the family’s financial footprint can help prevent external interference and unwanted scrutiny. By carefully selecting the jurisdiction, a family can benefit from an additional layer of confidentiality that helps protect family members from undue attention and potential security threats.

  1. Flexible Wealth Succession Planning

Offshore trusts or family foundations offer substantial flexibility for entrepreneurs planning wealth transfer across generations. Offshore trusts are particularly advantageous in enabling multigenerational planning, as assets can be managed according to the trust deed, protecting the family’s financial future even if the founder passes away. This ensures that wealth is managed professionally, without relying entirely on heirs, who may not yet possess the necessary experience. Foundations, meanwhile, are often structured with specific philanthropic goals, serving both the family’s financial needs and broader societal contributions. They can distribute wealth not only to direct heirs but also to charities, educational institutions, and community organisations. Through offshore foundations, families can integrate social responsibility into their legacy, offering heirs a model of value-driven wealth management.

  1. Mitigating Political and Economic Instability

In regions experiencing political instability or economic volatility, entrepreneurs and families with considerable wealth have to consider jurisdictional risk. Offshore structures enable diversification across countries with stable legal and economic frameworks, reducing exposure to potential government actions, currency devaluation, or restrictive capital controls. By holding assets in countries with stable governance and a favourable investment climate, families can ensure continuity and preserve wealth through periods of upheaval.

For families living in high-risk areas or those concerned with geopolitical risks, offshore structures offer a form of “wealth insurance.” With the support of offshore companies or trusts, assets remain accessible and protected in a secure, internationally respected jurisdiction.

Considerations for Using Offshore Structures

While offshore structures offer numerous benefits, it’s essential to approach them with a clear understanding of compliance requirements, transparency initiatives, and potential risks. International bodies, including the OECD and the Financial Action Task Force (FATF), have introduced guidelines and reporting requirements, such as the Common Reporting Standard (CRS), to ensure that offshore structures are used responsibly. Entrepreneurs and families must consult with legal and tax professionals to design structures that align with these frameworks.

Transparency is also critical. In an era where public opinion about offshore wealth structures is sensitive, it’s essential for families and entrepreneurs to employ these tools with integrity. Responsible and compliant use of offshore structures, paired with transparent reporting and an emphasis on ethical wealth management, helps protect not only the family’s wealth but also its reputation.

Creating long-term dynastic wealth and legacy

Offshore structures, when used responsibly and in compliance with global regulations, are potent tools for supporting entrepreneurial ventures and preserving dynastic wealth. By offering asset protection, tax efficiency, privacy, and strategic flexibility, these structures enable families and entrepreneurs to navigate complex financial landscapes while securing their legacies for generations.

For entrepreneurs seeking scalable solutions to expand their businesses globally, and for families committed to a long-term approach to wealth, offshore structures can provide unmatched benefits. As with any powerful tool, the key lies in informed, ethical use—working with trusted advisors to build a structure that is both robust and resilient in today’s evolving financial world. With the right foundation, entrepreneurs and families can ensure that their wealth not only endures but also continues to grow and make a positive impact for generations to come.

Entrepreneurship offers HNWIs a path to long-term dynastic wealth and legacy creation, but it isn’t without its challenges. By leveraging expert private wealth services, entrepreneurs can navigate the complexities of financial management, allowing them to focus on innovating and building successful businesses.

At Belasko, we’re dedicated to supporting the next generation of entrepreneurs in their journey toward sustainable success, ensuring their hard work and vision translates into enduring wealth for future generations.

Get in touch with Andy Bailey ([email protected]) if you would like to discover more.

–

[1] https://screenandreveal.com/entrepreneurship-statistics/

[2] https://ifamagazine.com/global-hnw-population-wealth-back-to-record-levels-despite-global-instability-finds-capgemini/

[3] https://www.visualcapitalist.com/wp-content/uploads/2023/10/gwr-2023-en-2-1.pdf

[4] https://atlas-offshore.world/

Preparing the next generation and managing the Great Wealth Transfer

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As the world prepares for the largest transfer of wealth in history, we are entering the era of the ‘Great Wealth Transfer’, with an estimated $84 trillion expected to pass from baby boomers to the next generation over the coming decades. This shift signals a profound opportunity, but also unprecedented challenges for heirs, many of whom may feel unprepared to manage the complexities of inherited wealth. The scale of this transfer has been accelerated by recent crises, including the pandemic and rising global inequalities[1], further underscoring the need for strategic succession planning.

For heirs receiving significant assets, the responsibility of managing and growing their wealth presents both opportunities and obstacles. According to a report by Cerulli Associates, nearly 45% of high-net-worth individuals (HNWIs) are concerned about their heirs’ ability to manage their inherited wealth effectively. The complexities of wealth management are evolving, and the next generation must be equipped not just with financial literacy but also with the tools and support to navigate a rapidly changing landscape.

The growing need for succession planning

Succession planning is crucial for ensuring the continuity and preservation of family wealth. But this shift in wealth also risks creating a “wealth divide,”[2] as only families with proper planning and access to sophisticated advisors will likely navigate the challenges successfully. Effective succession planning goes beyond just transferring assets—it’s about preparing heirs for the responsibilities they will inherit. The UBS Global Wealth Management study found that 54% of wealthy families lack a comprehensive succession plan, exposing them to potential disputes, tax inefficiencies, and the risk of mismanagement.

The ‘Great Wealth Transfer’ brings a new focus on preparing future generations for the stewardship of family wealth. Private wealth providers play a pivotal role in this process, offering expertise and guidance to help families create robust plans that encompass more than just financial assets. At Belasko, we understand that a successful transition requires both strategic planning and a deep understanding of family dynamics.

Challenges facing the next generation

The next generation of wealth holders faces unique challenges that differ significantly from those encountered by their predecessors:

  1. Complexity of financial markets: Today’s globalised and volatile financial markets require a sophisticated understanding of various asset classes, including equities, bonds, real estate, and alternative investments. Heirs need to navigate not just traditional markets but also emerging asset classes like cryptocurrencies, all while managing broader macroeconomic risks such as inflation and interest rate volatility.
  2. Maintaining family unity: Family dynamics can complicate financial decisions, especially when multiple stakeholders are involved. A lack of clear communication or differing visions for the future can lead to conflicts that jeopardise the preservation of inherited wealth. The FT article pointed out that such tensions can be exacerbated by generational differences in priorities and expectations regarding the use of family wealth.
  3. Navigating tax and regulatory environments: As regulations evolve and become more complex, heirs must be aware of tax implications and compliance requirements. A study by Wealth-X found that nearly 30% of global wealth could be eroded by taxes if not properly managed, underscoring the importance of informed financial planning.

Preparing for the future

As the next generation takes on the mantle of managing inherited wealth, it is essential that they are well-prepared to handle both the opportunities and challenges that come with this responsibility. The ‘Great Wealth Transfer’ is not just a financial event; it represents an opportunity for families to redefine their legacies and strengthen their long-term impact. By prioritising education, strategic planning, and strong governance, families can ensure that their wealth is preserved and grows for generations to come.

With the right support, the next generation can build on the foundations laid by their predecessors and it’s evident that there is a  need for families to have trusted advisors who can provide comprehensive guidance on wealth management, taxation, and family governance. This level of planning can safeguard a family’s wealth for generations to come.

And, working with experienced private wealth providers, like Belasko, can help ensure that heirs receive the guidance and support they need to succeed.

Belasko offer a range of services tailored to the unique needs of wealthy families, helping the next generation navigate the complexities of managing inherited wealth. Our approach can support families with anything from education and empowerment, to strategic planning, to trust and company administration.

By partnering with us, families can confidently face the future, knowing they have the expertise and support needed to navigate the complexities of succession planning with ease. Get in touch with our expert team to discover more.

The scale of the ‘Great Wealth Transfer’ means that thoughtful planning is no longer an option—it’s a necessity. If you’d like to understand how we can help ensure your family’s wealth endures for generations to come, get in touch with Andy Bailey ([email protected]) to discover more.

 

[1] https://www.ft.com/content/dc565eac-2b18-47f8-8378-8818ac9c3eae?accessToken=zwAGJAr2cjKAkdPcVl6sKxhH-NODeIgYrJw-rg.MEUCIQCMUihxVWNyD-YJHLlKeiLwG4KWYrqyK7CcC1bvEzPnBAIgNAWp-A9KBS6fCmU43taPk-pmDyv9Kf2XnDEV9S_KyfQ&sharetype=gift&token=338c9ff8-3260-43cf-bc8e-b14c8b1979c5

[2] Same as above

Strategic philanthropy: enhancing impact through private wealth providers

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In today’s complex financial landscape, philanthropy is becoming an essential component of wealth management for high-net-worth individuals (HNWIs). By integrating philanthropic goals with financial planning, individuals can make a significant social impact while strategically managing their wealth. However, navigating the intricacies of charitable giving requires expertise and guidance, making the role of a private wealth provider increasingly vital.

The growing importance of philanthropy in wealth management

Philanthropy is not just about donating money; it’s about creating a sustainable impact that aligns with personal values and long-term financial goals. According to a 2023 report by the Charitable Giving Foundation, charitable contributions from HNWIs have increased by 12% over the past five years, indicating a growing trend towards philanthropic engagement among the wealthy. A 2022 study by UBS found that 72% of HNWIs consider philanthropy an integral part of their wealth management strategy, reflecting a shift in mindset toward more purposeful giving. As the desire to give back grows, so does the need for professional support in navigating the complexities of charitable activities.

Additionally, the Global Wealth Report highlights that the number of family foundations has increased by 60% over the past decade, underscoring a trend towards structured philanthropic giving. These statistics show that more individuals are not only looking to donate but are also interested in creating long-lasting, impactful legacies through their wealth. This growing importance of philanthropy in private wealth management necessitates the expertise of a third-party private wealth provider to ensure that charitable goals are achieved effectively and strategically.

Integrating charitable goals into wealth management

While the benefits of philanthropy are clear, HNWIs often face several challenges in integrating charitable giving into their wealth management plans:

Complexity in aligning philanthropic goals with financial strategies

Crafting a philanthropic strategy that aligns with personal values and financial goals requires careful planning and expertise. Many high net worths struggle to balance their desire to give back with the need to maintain financial stability and growth. Partnering with an expert provider can provide expertise in crafting bespoke giving plans that maximise impact while optimising tax benefits.

Regulatory and compliance challenges

Different jurisdictions have varying rules on charitable giving, making it difficult to ensure compliance across borders. This complexity can deter HNWIs from engaging in philanthropic activities or lead to unintentional non-compliance. A private wealth provider ensures that all philanthropic activities comply with relevant laws and regulations, minimising risks and enhancing the efficiency of charitable contributions.

Effective impact measurement

Determining the effectiveness of charitable contributions is often challenging. HNWIs need to ensure that their donations are making a meaningful difference and align with their philanthropic goals. Expert providers like Belasko can offer robust tools for impact measurement and reporting, allowing clients to assess the effectiveness of their philanthropy and adjust strategies as needed.

Family involvement and governance

Engaging multiple family members in philanthropic activities can be both rewarding and challenging. Clear communication and governance structures are needed to ensure alignment and avoid conflicts.

The role of a private wealth provider in philanthropy

A structured approach to philanthropy is crucial when integrating charitable goals into your wealth management. This can be effectively managed with the support of an expert, reputable private wealth provider. From establishing charitable foundations to ensuring compliance with tax regulations, they can offer tailored solutions that address the unique challenges faced by ultra and high net worth individuals in their philanthropic endeavours.

Working with a partner like Belasko

At Belasko, we offer a comprehensive suite of private wealth services tailored to the unique needs of HNWIs, from strategic planning to compliance support and impact measurement.

We help ensure that your philanthropic efforts are impactful, sustainable, and aligned with your broader wealth management strategy.

For more insights on how to incorporate philanthropy into your wealth management plan, get in touch with Andy Bailey ([email protected]) and find out how we can help you maximise the impact of your charitable giving and achieve your philanthropic goals with confidence.