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

Written by

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

Written by

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/

Fund manager scale-ups: balancing growth with efficiency

Written by

Private capital fund managers, particularly in VC, often operate within a lean model which affords them dynamism and agility in pursuit of exceptional investment return. However, this can present challenges as they scale-up and grow.

It demands a strategic operational approach which will generally require taking a partnership approach with a third-party fund administrator to streamline processes and maintain robust control and oversight. Effective collaboration with fund administrators supports fund managers to focus on value creation, ensuring seamless deal execution, reporting, and compliance while avoiding operational bottlenecks.

This article aims to provide actionable insights for fund managers to effectively navigate the scale-up pathway and achieve growth without proportional cost expansion.

Integrate, don’t replicate

A streamlined relationship with your fund administrator can be transformative. This partnership hinges on integrating processes and responsibilities rather than duplicating efforts, ensuring efficiency and clarity at every stage:

  • A clear deal process: Establish a robust process for your deal cycle—from due diligence, deal execution through to facility drawdown, capital call issuance and deal settlement. Ensure the full end to end deal process is clear, well-documented and accepted and well understood by both your internal deal team and your administrator.
  • Structured communication: Support a transparent and structured communication framework. This ensures clarity on deliverables, pipeline activities, and priorities between your team and proactively driven by your administrator.
  • Reliance on controls: Develop/request an in-depth understanding of the controls performed by your fund administrator. This allows you to rely on their processes rather than re-performing tasks, saving time and reducing redundancy.

Oversight and control

Scaling doesn’t mean relinquishing control. Effective oversight ensures that operational standards and strategic goals are met as your fund grows:

  • Key Performance Indicators (KPIs): Agree on KPIs that reflect both parties’ expectations. Fund administrators should provide proactive reporting against these metrics to ensure alignment and accountability.
  • Proactive Deadline Management: Administrators should proactively highlight upcoming deadlines and critical workstreams, enabling fund managers to plan, scrutinise and respond effectively.

Leverage technology

In today’s tech-driven market, fund administrators invest significantly in advanced systems and reporting platforms, aiming to deliver cutting-edge tools that enhance efficiency, accuracy, and scalability. Fund managers can unlock substantial value by maximising the potential of these investments rather than duplicating efforts or maintaining costly third-party systems.

  • Utilising existing tools: fund administrators have spent significant time developing and refining their technology solutions, incorporating automation, data visualization, and compliance tools designed specifically for fund management needs. By leveraging these platforms, fund managers can:
    • Enhance reporting: Access real-time, detailed financial and operational reports tailored to their requirements, providing transparency and insights.
    • Streamline operations: Automate routine tasks such as NAV calculations, investor reporting, and compliance monitoring, reducing manual effort and minimising errors.
    • Ensure compliance: Rely on integrated systems designed to keep pace with evolving regulatory requirements, ensuring seamless adherence to global standards.
  • Collaborating on custom solutions: While standard platforms address most fund manager needs, unique challenges often arise during scaling. Engaging in open dialogue with your fund administrator allows for tailored adaptations or co-developed solutions.

By leveraging the administrator’s existing infrastructure, fund managers can achieve cost-effective innovations that align with their objectives, avoiding the expense and complexity of developing systems in-house.

The Belasko advantage

At Belasko, we understand the unique challenges fund managers face when scaling up. Our partnership-driven approach offers end-to-end fund administration solutions tailored to support your optimal operating model. By integrating our services into your operations, we help fund managers achieve growth without compromising on oversight, control, or efficiency.

If you’re looking to scale up effectively, contact Nick McHardy, Head of Funds ([email protected]), to learn how Belasko can support your journey.

Resilience and innovation in private markets amid economic shifts

Written by

What are the pressing issues and emerging trends across the private markets as we fast approach the end of the year?

At an event last week, Greg McKenzie, our Luxembourg Country Head, shares insights into the latest trends shaping the Luxembourg funds market and his observations of the sector’s strong resilience and its ability to innovate amid ongoing economic changes and uncertainty.

The Luxembourg market continues to lead in responding to challenges such as rising borrowing costs, real estate pressures, and evolving LP demands. In this article, he reveals how fund managers and investors are leveraging new strategies to navigate these hurdles while positioning themselves for growth in 2025.

Credit sublines: adapting to rising costs with strategic value

Credit sublines have cemented their role as a critical tool for fund managers, even as borrowing costs rise. These facilities help funds grow net asset value (NAV) without frequent capital calls, optimising internal rate of return (IRR) and providing greater flexibility in portfolio management.

Looking ahead, there is cautious optimism for 2025 as credit strategies remain vital despite rising borrowing costs. Fund managers are adapting by renegotiating terms, exploring alternative structures, and leveraging data to optimise cash flow and returns.

Credit lines continue to provide liquidity and flexibility, allowing managers to focus on long-term goals while delaying capital calls to enhance IRR metrics. Anticipated interest rate easing further bolsters confidence, positioning credit strategies for growth in a shifting market.

Fundraising and LP engagement: still tough times

The fundraising environment remains challenging, with institutional investors favouring established relationships over new partnerships. LPs are consolidating commitments with known GPs, reflecting a cautious approach in the face of ongoing economic uncertainty.

Another dynamic impacting the market is the retention of assets post-COVID. Many assets remain held within portfolios, delaying returns of capital to LPs and reducing their ability to redeploy into new opportunities.

Despite these challenges, LPs are shifting toward more global mandates, seeking to diversify their portfolios across broader geographies rather than sticking to regional allocations. This pivot is creating new opportunities for GPs to align their strategies with a more global investment thesis.

Real estate: navigating change and seizing opportunities

The real estate sector continues to face disruption, with letting issues in commercial real estate weighing on valuations and investor confidence. However, some challenges are also creating opportunities:

  • Fixed-term maturities: Assets with maturing fixed-term debt may push reluctant sellers into the market, creating potential for opportunistic buyers.
  • Closing the buyer-seller gap: The valuation mismatches seen post-COVID are narrowing, paving the way for increased transaction activity and exits.
  • Impact of rate drops: Anticipated reductions in interest rates could drive value increases across certain real estate assets, boosting market momentum.

Notably, credit within real estate is gaining clarity as a distinct allocation bucket for LPs, separating it from traditional real estate or equity classifications. This evolution is helping investors make more informed decisions about their portfolios.

Innovations in NAV lending

The NAV lending market is evolving rapidly, with new structures and strategies enhancing its appeal. Traditional SPV lines remain prevalent, offering mechanisms for funds and lenders to manage default events effectively.

Segmentation is also becoming more pronounced, with lenders aligning their expertise to specific asset classes, such as buyouts, private equity, infrastructure, and credit. This targeted approach is improving due diligence and aligning financing strategies with sector-specific risks.

In addition, a more entrepreneurial attitude is emerging in fund lending. High-net-worth individuals (HNWIs) are increasingly being engaged as part of broader investor pools, signalling a shift toward diversification in funding sources.

Looking ahead: optimism for 2025

Despite a tough fundraising environment and ongoing pressures in real estate, there is cautious optimism for 2025. Anticipated rate reductions, narrowing valuation gaps, and the ongoing evolution of credit strategies are likely to drive momentum across private markets.

With approximately 90% of funds now using call facilities, the Luxembourg market is maturing and adapting to a more complex environment. The industry is seeing increased competition and participation, underscoring the importance of robust due diligence and innovative approaches to capital deployment.

As private markets continue to evolve, collaboration between fund managers, LPs, and lenders will be key to navigating the challenges and seizing the opportunities that lie ahead.

For more insights or to discuss these topics further, please get in touch with Greg McKenzie ([email protected]).

Adapting to Change: Key Policy Developments Shaping Private Markets

Written by

The UK funds industry is at a pivotal moment. Over recent years, it has faced a challenging environment shaped by economic headwinds, political shifts, and heightened regulatory scrutiny. The introduction of a new government and a president in the United States marks a time of change, where policy decisions on both sides of the Atlantic will inevitably influence the private markets landscape.

At the same time, private markets are contending with complex global challenges—from tax reforms and sustainability mandates to evolving valuation and reporting standards. These changes are poised to redefine how fund managers operate, interact with investors, and deliver returns.

As the UK seeks to maintain its position as a global hub for private capital, managers are navigating a delicate balance: responding to regulatory demands while preserving competitiveness in a rapidly evolving market. This article delves into the latest policy and regulatory developments, offering insights on their implications and how private market participants can prepare for the road ahead.

Carried interest: Changes in the UK tax landscape

The UK’s carried interest regime is set for significant change following the Autumn Budget. Rachel Reeves, under the new Labour government, outlined sweeping tax reforms aimed at addressing fiscal challenges and aligning the UK with global taxation norms. These measures mark a decisive shift in policy and are expected to have far-reaching implications for private markets.

  1. Capital Gains Tax increase: Effective from April 6, 2025, the Capital Gains Tax (CGT) rate on carried interest will rise from 28% to 32%. This move places the UK among the highest-taxed jurisdictions for carried interest, on par with France and New York.
  1. Shift to trading income: In a dramatic overhaul of the current framework, carried interest will be treated as trading income rather than capital gains, fundamentally changing its taxation basis.

Additional measures include the extension of Income-Based Carried Interest (IBCI) rules to employees alongside LLP members and the introduction of taxes on non-UK residents’ carry related to UK-based services, subject to double tax treaties.

These reforms, while aimed at addressing perceived inequities in the taxation of private capital, risk diminishing the UK’s competitive edge unless counterbalanced by broader incentives or strategic industry support. Private markets participants will need to act swiftly to navigate this evolving landscape and mitigate the potential disruption caused by these policy shifts.

Key tax risks in due diligence for private equity investments

Tax due diligence is a critical component of private equity transactions, ensuring compliance, mitigating risks, and preserving value throughout the investment lifecycle. Private equity managers must prioritise four key areas where tax risks often arise:

  • Restructuring: Many private equity investments require significant restructuring to streamline operations, improve efficiency, or position the business for growth.
  • Refinancing: Leveraging debt is a common strategy in private equity transactions, but refinancing activities can give rise to tax concerns. Thorough tax analysis helps structure debt efficiently while mitigating regulatory exposure.
  • Tax action plans: During due diligence, managers often uncover tax risks at purchase. Developing and executing a robust tax action plan ensures identified risks are addressed proactively. This safeguards the investment and builds confidence among stakeholders.
  • Management Incentive Plans (MIPs): MIPs are vital for aligning the interests of management teams with investors, but they also present complex tax challenges. MIPs and employee loans require extra scrutiny to ensure compliance and avoid adverse tax consequences.

Private equity owned businesses often face distinct tax challenges due to their ownership structure. Additionally, insurers may exclude certain risks from coverage, necessitating proactive strategies to address these gaps well in advance of a sale process.

By focusing on these areas and implementing robust tax governance frameworks, private equity managers can navigate risks effectively, better protecting their investments.

Unlocking UK defined contribution pension capital

Private capital structures often clash with the liquidity needs of UK defined contribution (DC) pension schemes. While government and industry are seeking solutions, hurdles remain in areas like liquidity, valuations, and the treatment of carried interest. For managers able to align with these needs, the opportunity to unlock significant capital flows is immense.

AIFMD II and UK-EU divergence

The EU’s AIFMD II introduces stricter rules, including higher regulatory capital requirements, tighter delegation standards, and limitations on non-core activities. These changes aim to enhance transparency and investor protection but may increase costs and operational burdens, particularly for smaller managers.

In contrast, the UK is charting a more flexible path, focusing on competitiveness. Proposed measures include raising the €500m small AIFM threshold and avoiding sharp increases in regulatory capital requirements. This divergence seeks to attract global fund managers by fostering innovation and reducing compliance barriers.

For fund managers operating across jurisdictions, dual compliance will add complexity, but the UK’s approach may position it as a more attractive destination for private capital, offering a competitive edge in the global market.

The FCA agenda

The FCA is intensifying its focus on how private capital managers approach asset valuations, with a live consultation concluding in Q1 2025. Independence is becoming a cornerstone of valuation practices, with portfolio monitoring teams playing a more prominent role in scrutiny alongside formal governance processes.

The FCA also emphasise speed, clarity, and certainty to build confidence in private markets. Key initiatives include expanding access to capital, fostering diversity, and enhancing data-driven regulation, particularly in ESG.

Regulatory reporting changes 

ILPA’s updated quarterly reporting templates, effective January 1, 2026, aim to improve transparency, particularly around leverage and debt, providing investors with deeper insight into portfolio risks. However, feedback from the BVCA highlights that these templates may not be suitable for all investment strategies, especially those with complex structures or heavy debt exposure.

Fund managers will need to adapt their reporting processes to meet these new standards while maintaining flexibility for unique strategies. Collaborating with service providers will be key to ensuring efficient, compliant reporting that meets regulatory demands and supports investor confidence through enhanced transparency.

Retailisation of private markets

The push to retailise private markets, driven by ELTIF reforms, offers fund managers access to a vast new capital pool, particularly through defined contribution (DC) pension schemes. However, this shift comes with challenges including liquidity management and enhanced transparency in valuations.

While opening private markets to retail investors could drive significant growth, fund managers must adapt operationally to handle increased reporting, investor communication, and governance. Successfully navigating these challenges will position managers to benefit from a democratised private markets landscape for long-term growth.

Thriving amidst regulatory and market shifts

The UK’s private markets face a dual challenge: balancing regulatory demands with global competitiveness. The interplay between tax changes, evolving valuation standards, ESG mandates, and expanded reporting requirements demands a proactive approach. Managers that adapt swiftly will position themselves to thrive amidst this dynamic regulatory environment.

For tailored insights into navigating these changes, get in touch with Nick McHardy, Head of Funds ([email protected]) or Ross Youngs, CCO ([email protected]).

     

Considering Guernsey for your next private capital fund

Written by

Guernsey is well known as a premier host jurisdiction for the administration of private capital funds, offering a host of advantages that make it an attractive domicile for fund managers and investors alike. In this article, Hannah Dunnell (Guernsey Managing Director) explores the appeal of Guernsey as an alternative’s destination, typical fund structures the regulatory regime and how the use of a trusted third-party partner can complement the journey.

Why choose Guernsey as a fund destination?

Guernsey’s reputation as a leading financial centre is well established, with decades of experience in the international finance sector. The island’s robust tax, legal and regulatory framework, combined with its innovative approach to financial services, has made it a preferred location for alternative investment funds that ensures investor protection and stability. With track record and experience in hosting a wide variety of international alternative funds, both Guernsey and Belasko boast decades of experience in the real estate, venture capital and private equity sectors.

Guernsey funds benefit from unrestricted marketing into North America, the Middle East, and the Asia-Pacific region. Within Europe, Guernsey-based funds can access the European Economic Area (EEA) through the National Private Placement Regime (NPPR). With a total net asset value of Guernsey Funds at nearly £286 billion[1], Guernsey has built a solid reputation for private capital fund administration.

The total net asset value of Guernsey funds at the end of the quarter was £295.7 billion, an increase over the quarter of £3.2 billion (+1.1%).  Over the past year, total net asset values have increased by £9.7 billon (+3.4%).

Whilst Guernsey has traditionally been the home of the alternatives administration sector and continues to service a large proportion of the world’s top alternatives houses, Guernsey has emerged as a top-class destination to new managers looking to launch a first, spin out or buy out venture, leveraging the broad diversity of experience and skills available in the island whilst offering familiarity to managers and investors alike. With an innovative, responsive and engaged regulator and industry, Guernsey remains the ideal destination for alternatives.

Typical fund structure

Fund managers have a plethora of options to choose from in Guernsey to suit their specific structuring needs, below we explore some of the most commonly utilised structures:

Limited Partnerships

Whilst Guernsey offers the ability to establish both incorporated (creating separate legal personality for the partnership), and unincorporated limited partnerships under the Limited Partnerships (Guernsey) Law of 1995, non-Guernsey partnerships are often administered from Guernsey.

Non-Guernsey partnerships, such as English or Scottish partnerships are often utilised to take advantage of the benefits of the law under which they are established, but which form part of a larger fund structure to facilitate say, carry allocations or co-investment opportunities.

Commonly referred to as a GP / LP structure, a limited partnership will appoint a general partner who manages its affairs, with a separate Investment Manager or Advisor often being appointed by the general partner. Typically, the general partner will be a Guernsey company, which can accept appointments from multiple partnerships, and which will often bring any non-Guernsey partnerships into tax residence in Guernsey by way of management and control being exercised in Guernsey. The rate of corporate tax in Guernsey for entities with no physical presence is currently set at 0%, notwithstanding any bodies that form part of a larger group that may be subject to Pillar II legislation.

Company and Trusts

Guernsey companies and trusts are widely utilised as ancillary vehicles in a larger fund structure for management and control purposes or as special purpose vehicles to facilitate asset ownership, financing or provision of management incentive plans. strategies. The use of Protected and Incorporated Cell Companies has become increasingly popular as an alternative to a more traditional GP / LP fund, allowing asset and investor segregation, without the need for additional vehicles that often add cost and complexity to a structure.

Guernsey law has its roots in common law and offers both practical ease and flexibility across all aspects of its framework.

Regulatory Categories and Fund Types in Guernsey

Most fund structures will require some sort of regulation, and Guernsey offers a flexible regulatory environment tailored to meet the diverse needs of the alternatives industry. If meeting the definition of a Collective Investment Vehicle (CIV), ie a diversification of both investments / assets and investors, then direct regulation will be required; if the definition of a CIV is not met then what is referred to as a ‘Fiduciary Exemption’ may be required to be obtained. Should your structure not require regulation, or require a ‘Fiduciary Exemption’, a GFSC regulated corporate service provider will be required to provide services to your structure.

The regulatory regime for closed-ended funds is divided into three primary categories: private investment funds (PIFs) registered funds (RCIS) and authorised funds (ACIS).

PIFs and registered funds offer the fastest route to market in Guernsey, with the local administrator (often referred to as the Designated Administrator) undertaking to the regulator that the fund promoter meets the criteria for licensing, known locally as the fit and proper test. The reliance by the regulator on the Designated Administrator to perform such checks, allows the utilisation of what is known as the ‘fast track’ regime, allowing achievement of regulatory status in as little as three days.

Subject to meeting the specific route 1, 2 or 3 criteria, PIFs also offer a convenient way to expedite timetable to market and offer a ‘light touch’ regulatory regime on the basis that the investor base does not contain retail investors, only those who are considered professional or institutional investors.

In contrast, authorised funds undergo a more rigorous review process. These funds receive their authorisation directly from the GFSC after a substantive suitability review. This category provides an additional layer of investor protection and may be preferred by managers looking to attract institutional investors.

Onshore and offshore counsel and advisors are typically appointed to advise on constitutional documents (e.g. LPA, Side Letters), marketing and wider tax considerations (i.e. fund formation), as well as on local regulatory compliance and supporting tax considerations.

Belasko in Guernsey

Guernsey offers a compelling combination of regulatory flexibility, robust infrastructure, and global market access, making it an attractive destination for private capital funds. By understanding the available fund structures and regulatory categories fund managers can make an informed decision about whether Guernsey is the right domicile for their first or next fund. Engaging in early discussions with advisors is crucial in navigating this process.

Our group headquarters are based in Guernsey, and our team on the ground have extensive experience in servicing global fund managers. We provide tailored end-to-end fund administration and corporate services that seamlessly support you with streamlining your back-office operations.

With a deep understanding of the Guernsey regulatory landscape and strong relationships with local law firms and advisors, we provide a personalised, reliable, and proactive service, helping 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 Guernsey, please get in touch with Hannah Dunnell (Managing Director) at: [email protected]

[1] GFSC Statistics at the end of Second Quarter 2024, https://www.gfsc.gg/industry-sectors/investment/statistics

Leveraging expertise for entrepreneurial success and dynastic wealth protection

Written by

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

Written by

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

Written by

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.

Seizing opportunities amid uncertainty: insights from the Jersey Finance Private Wealth Conference

Written by

This year’s Jersey Finance Private Wealth Conference in London was themed “Beyond the Permacrisis: Taking Advantage of Change and Opportunity.” The event offered thought-provoking sessions and engaging networking opportunities, with insights that are invaluable for navigating the current landscape. James Michel, Director in Private Wealth, summarises the key themes covered at the event.

Geopolitics and the new world order

Keynote speaker Tim Marshall set the tone with a captivating presentation on the “multipolar world” we now live in, emphasizing the role of geography in shaping global politics. He also touched on the modern “space race” and left the audience with a powerful reflection, quoting, “there is nothing new under the sun,” suggesting that history often repeats itself, but with greater understanding each time. During an interactive Q&A, Marshall shared his prediction that Argentina could emerge as a major player in the next 20 years, sparking conversations about future growth regions.

Strategic wealth management in a volatile world: key panel insights

The panel discussions centred around how private investors and families can successfully navigate a world marked by geopolitical volatility.

  • Strategic investing in turbulent times: The panellists emphasised the importance of thinking strategically about investing amidst geopolitical risk. Collaboration among advisers is critical to understanding and navigating economic cycles, which, as mentioned, can last up to 30 years.
  • Global families and wealth management: As clients become increasingly multi-jurisdictional, wealth advisers must adapt to the complexities of managing assets and family affairs across borders. The rise in global mobility has resulted in families maintaining multiple residences, businesses, and investments in different jurisdictions, each with its own legal, regulatory, and tax implications. This shift demands greater flexibility in wealth structuring, as traditional approaches often fall short in accommodating the modern, borderless lifestyle of high-net-worth individuals.

    Advisers must craft bespoke solutions that not only address the diverse requirements of these global families but also account for evolving regulations and geopolitical uncertainties. This includes managing cross-border tax compliance, mitigating risks associated with different legal systems, and ensuring a seamless transfer of wealth across generations. Additionally, there is an increasing focus on the professionalisation of wealth management, as family offices look for more sophisticated governance models, operational efficiency, and a broader suite of services to support their global aspirations.

    With a growing demand for holistic, internationally adaptable strategies, wealth advisers must collaborate more closely with global legal, tax, and financial experts to ensure that structures are robust, future-proof, and responsive to the dynamic needs of modern global families.

  • Philanthropy at the forefront: Philanthropy is increasingly important to high-net-worth families, particularly in regions like the GCC, where philanthropic donations are estimated at $210 billion annually. This shift represents a significant change from tax being the primary driver of wealth management conversations in the past.
  • Embracing change and technology: Technology was a major theme, with AI and fintech emerging as transformative forces within the wealth sector. While there is still misinformation surrounding AI, it was acknowledged that AI is here to stay and offers significant efficiencies. However, governance and regulation will be essential in mitigating its risks. Although there was some debate that AI could erode jobs, most panellists agreed it is more about reshaping how we work and integrating AI tools into our day-to-day processes, not replacing human talent.

Looking ahead: opportunities for family offices

The conference concluded with a dynamic Q&A session discussing how jurisdictions can attract family offices—entities set up by high-net-worth families to manage their wealth. A key theme was the “ease of doing business,” encompassing streamlined regulatory frameworks, tax incentives, and administrative efficiency. Family offices seek jurisdictions that offer straightforward processes, allowing them to focus on strategic planning rather than compliance burdens.

The panelists also emphasised the importance of stability and predictability in governance, with family offices favouring locations known for political and economic security. Furthermore, jurisdictions must embrace innovation and provide access to advanced fintech and bespoke services that cater to the unique needs of family offices, including impact investing and philanthropy advisory.

Overall, the Jersey Finance Private Wealth Conference offered valuable insights into the challenges and opportunities presented by today’s global landscape. From navigating geopolitical risks to embracing the AI revolution, the event highlighted the importance of strategic thinking and adaptation for the future of wealth management.

At Belasko, our private wealth services are designed to protect, grow, and transition wealth while navigating complex legal and regulatory environments. We offer tailored solutions across four key pillars: philanthropy, next generation, entrepreneurship, and sustainable investing. If you’re interested in exploring our private wealth services in Jersey, please reach out to James Michel ([email protected]).