With appetite for private equity, private debt, venture capital and real assets showing no signs of slowing, fund managers face a critical early decision: where to domicile.
At a time when investor confidence, regulatory credibility and operational agility can determine long-term success, the choice of jurisdiction is about more than compliance; it's about commercial alignment.
Jersey has positioned itself as a centre of excellence for cross-border alternative fund strategies. Backed by decades of focus, responsive regulation and deep local expertise, it offers a pragmatic and proportionate platform for today's fund managers, whether launching their first vehicle or scaling globally.
As the alternatives market is expected to exceed $30 trillion by 2030 (GlobeNewswire), Jersey is already administering over £500 billion in fund assets - 88% of which are in alternatives (Jersey Funds Association).
In this article, Gavin Carruthers, Executive Director in our Corporate and Funds team, explores why Jersey's fund regime remains a compelling choice, and how Praxis supports managers across the full lifecycle of their fund.
A jurisdiction built around private capital
Jersey's fund ecosystem has been shaped to support alternative strategies. As of mid-2024, its regulated fund net asset value stood at £457.6b, with particular strength in illiquid, closed-ended structures such as private equity, private debt and venture capital (International Adviser).
Unlike jurisdictions built around retail or liquid fund formats, Jersey has focused on professional investor structures that require specialist expertise, including carried interest models, co-investment vehicles, drawdowns and bespoke governance.
This clarity of purpose is now paying dividends. Between 2023 and 2024, Jersey saw a 21% year-on-year increase in private equity and venture capital NAV (International Adviser), supported by growing institutional trust and a service model that understands the nuance of private capital.
Designed for speed and simplicity
Product innovation is a core differentiator. The Jersey Private Fund (JPF), introduced in 2017, enables managers to launch with up to 50 professional or high-net-worth investors in as little as 48 hours. This blend of speed and simplicity has made the JPF a go-to vehicle across the spectrum - from first-time GPs to feeder structures for flagship funds.
As of mid-2024, 699 JPFs had been established with a combined NAV of £86.7b. Alongside this, the 2023 introduction of the Jersey LLC (based on the Delaware model) has added further structuring flexibility, particularly for US managers seeking partnership-style economics in a corporate form.
Access to global capital, without unnecessary complexity
Jersey sits outside the EU but retains targeted access via national private placement regimes (NPPRs). For managers marketing to a select number of European jurisdictions (as 97% of non-EU GPs currently do) Jersey offers a proportionate solution that avoids the cost and complexity of full AIFMD passporting.
Over 400 funds and 200 non-EU managers now rely on Jersey's NPPR regime, which is a 60% rise over five years (Jersey Funds Association). But Jersey's reach goes far beyond Europe. Vehicles domiciled in Jersey are widely used by investors across the UK, US, Asia and the Middle East, offering feeder and carry structures aligned with regional expectations.
A measuredapproachto regulation
Jersey's regulatory environment strikes a thoughtful balance between investor protection and commercial flexibility. Its tiered framework provides lighter-touch oversight for professional funds, while maintaining robust standards for retail offerings.
This approach was affirmed by MONEYVAL in early 2024, with Jersey meeting global AML and CTF expectations. For managers, this means working with a regulator that is both technically rigorous and operationally responsive, especially where timelines are tight.
Executional strength – not just a registered office
Jersey's strength lies in its people. With a high concentration of administrators, directors, lawyers and auditors focused exclusively on alternatives, the island offers deep operational and structuring expertise.
For many managers, Jersey has become more than a domicile; it is a centre of substance. Operational teams are increasingly based here to enhance governance and demonstrate substance to both investors and regulators.
At Praxis, we support funds from formation through to wind-down. Our Jersey-based team works closely with managers to deliver capital call administration, complex waterfall models, investor reporting and ongoing regulatory compliance.
When Jersey makes strategic sense
Jersey may not be the right solution for every fund. It's not aimed at high-volume, daily dealing retail strategies. But Jersey consistently delivers for professional investor funds where:
- Structures are bespoke
- Timelines are tight
- Execution needs to be seamless
- EU access is required without full passporting
Before selecting a jurisdiction, fund managers may want to consider:
- What level of EU access is truly required?
- Do investors value speed and responsiveness?
- Is deep private capital experience important?
- Will substance and governance be under scrutiny?
When the answers lean towards flexibility, focus and credibility, Jersey should be near the top of the shortlist.
Turning jurisdictional choice into advantage
At Praxis, we work alongside fund managers to convert Jersey's structuring potential into commercial advantage. That means launching on time, building robust operational processes, and navigating regulatory requirements with confidence.
From first close to final distribution, our team brings deep expertise in private market fund administration, with Jersey as a core part of our global platform.
If you're considering Jersey for your next fund, or would like to benchmark your current structure, our Corporate & Fund Services team would be happy to help. Please drop Gavin a line to discuss further.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
