As private capital becomes an increasingly valuable source of funding many families and family offices are giving consideration to the formation of fund structures as a means through which to hold, manage and invest family wealth.

A private fund is a closed-ended structure set up for a specified group of investors. The units or shares of the structure are only accessible by the participating investors or by the wealth structures administered for them.

Private funds have proven popular with wealthy families and investment club members who are interested in:

  • Structuring the purchase of a specific investment with co-investors or with a view to bringing in co-investors.
  • Pooling family wealth in a transparent and equitable way so as to facilitate investment opportunities.
  • Facilitating the retention and continued enjoyment of ‘heirloom’ assets, including the family business.
  • Consolidating a potentially diverse portfolio of assets into a single holding structure to improve oversight and enable reporting on a macro basis. 

A private fund may take a number of legal forms, with private companies, unit trusts and limited partnerships among the most favoured. The choice of form will depend principally on the proposed use of the structure and considerations such as flexibility, limitation of liability and tax efficiency.

In Jersey, private funds can be established quickly and with few of the regulatory requirements that apply to larger or publicly offered collective investment schemes.

While Private Funds will not provide succession planning benefits in isolation, they are often used in conjunction with other structures established for the benefit of interested parties to achieve such objectives.

Key Features

Establishment of Private Fund structure
Provision of fiduciary services
Provision of administration services
Access to consolidated reporting
Provision of consolidated accounting
Tax compliance & reporting

Key Contact

Naomi Rive

Group Director & Head of Private Wealth
+44 (0) 1534 480 601