Guernsey’s role in supporting the next phase of global private capital growth was the focus of this year’s Guernsey Funds Forum, held under the theme “The Next Trillion”.
The event followed Guernsey’s recent milestone of reaching £1 trillion within its investment sector and explored how the island can continue to support managers, investors and specialist structures as private capital plays an increasingly important role in long-term economic growth.
Across keynote speeches, panel discussions and practical seminars, speakers examined the opportunities and pressures shaping the international funds landscape, from regulatory convergence and geopolitical uncertainty, to evolving investor expectations, sustainability standards and the need for greater operational resilience.
Opening the event, Chief Executive of Guernsey Finance, Barnaby Molloy, said: “We have recently surpassed £1 trillion in our investment industry – a significant milestone and one that speaks to the strength, flexibility and credibility of Guernsey’s offering. A sizeable part of that trillion comprises entities which are ancillary to funds, including deal-by-deal and club arrangements, as well as specialist vehicles that sit alongside regulated fund structures – an area where Guernsey’s specialist expertise and flexibility continue to stand out.
“Increasingly, Guernsey is helping capital to reach areas where it is needed most, whether that is long-term investment, underserved sectors or specialist areas such as defence, where access to capital has become both more constrained and more important.”
That focus on Guernsey’s role in global capital flows continued in a keynote address from John Godfrey, Managing Director for Public Affairs, Policy and Research at TheCityUK, who highlighted the island’s contribution to the UK and wider international financial services ecosystem.
Mr Godfrey said: “What you do in Guernsey complements and is integral to what we do here in the UK – not just in the City or Canary Wharf but in the thriving financial centres across these islands. Together, we can offer a network of open, globally connected financial centres.
“Guernsey sets a globally high standard. Guernsey has achieved what it has achieved because of the quality of the firms and people who work in financial and professional services on the island, or with the island.”
Mr Godfrey also announced that Guernsey Finance has joined TheCityUK’s Defence and Resilience Group, which aims to tackle longstanding policy issues affecting the UK's economic resilience, security and defence capabilities.
The Forum brought together fund managers, legal advisers, administrators and industry specialists for a programme of keynote speeches, panel discussions and practical seminar sessions examining the future direction of the funds industry and Guernsey’s role within it.
Flexible fund structuring
The first panel discussion, ‘Flexible fund structuring’, examined how Guernsey’s range of fund structures continues to support innovation across private capital strategies. Panellists discussed the importance of speed to market and close collaboration between industry and the regulator, highlighting Guernsey’s ability to respond quickly to evolving market requirements.
Marc Schubert, Partner at Weil, Gotshal & Manges, said: “In Guernsey, they know what they’re doing. They’ve been doing it for a very long time, and they bring a very pragmatic focus, which is really important.
“Over the last few years, primary fundraising has become more difficult. When it comes to single-asset deals, co-investments or other bespoke structures, timeframes are determined by the underlying deal timetable, and you may not have six to nine months to set a structure up – you may have six to nine weeks. In these cases, Guernsey really comes to the fore with its speed and agility.”
Guernsey: the gateway to private capital
That focus on flexibility continued into a wider discussion on Guernsey’s role as a gateway to private capital, with speakers examining how global managers continue to prioritise jurisdictions that combine regulatory credibility with practical commercial expertise.
The panel also explored how investors are demanding greater transparency and operational resilience alongside the role of advanced technologies in managing future growth, and the importance of sustainability standards at a time of disruption in the energy supply chain.
Ruth Murray, Investment Director at Gresham House, said: “From a sustainability perspective, the standards and rigour that Guernsey has with its green funds and Natural Capital Fund designation is a real differentiator. That level of credibility is so important in making these sorts of funds and attracting the managers who want to come together for a greater purpose.”
Alongside the main programme, attendees also took part in dedicated seminar sessions providing more in-depth practical discussions on emerging areas of opportunity.
The first, “From geopolitics to portfolios: investing in an era of strategic competition”, explored how geopolitical developments are influencing investment strategies, including the growing focus on defence-related opportunities and the key considerations involved in launching, structuring, administering and managing such funds.
The second, “Your first fund: why Guernsey works”, focused on the practical stages involved in launching a first-time fund in Guernsey and outlined the support available to emerging managers selecting the island as a domicile.
The Forum closed with a keynote address from Dr Jo Salter MBE, former Director of Global Transformative Leadership at PwC and the UK’s first female fast jet pilot, who shared insights on leadership, resilience and decision-making under pressure and at times of uncertainty.
