Slow but steady progress: reflections from the BVCA’s International Women’s Day event

Written by

Last Thursday, 6 March, the BVCA hosted its Diversity, Equity & Inclusion: International Women’s Day event in London, where Alice Heald, head of marketing, joined industry leaders to discuss the latest progress in gender diversity within private equity and venture capital. The event that highlighted recent findings from the BVCA’s Diversity & Inclusion Report and explored key themes around mentorship, role models, and strategic career development for women in the industry.

Encouraging progress in representation

According to the BVCA report[1], women now make up 27% of investment professionals in PE and VC firms in the UK, up from 24% in 2023. Since the BVCA’s first study in 2018, the industry has seen consistent, albeit slow, progress in gender diversity.

  • Senior and mid-level representation: Women in senior investment roles have risen to 15%, while mid-level representation has increased to 17%, both seeing a 3-percentage point rise.
  • VC vs. PE: Venture capital firms continue to show stronger female representation, with 10% more senior and mid-level women compared to private equity firms.

The power of role models and mentorship

A recurring theme throughout the event was the impact of mentorship and sponsorship in supporting women’s career development. Industry veterans shared insights on career growth, risk-taking, and the importance of paying it forward.

Key takeaways:
  • Take risks and avoid over-planning: Women should be encouraged to take on new challenges without over-planning their careers, a personality trait often seen in women that can sometimes hold us back.
  • Building strategic networks: It’s important to think beyond immediate job roles and proactively seek opportunities to upskill, show initiative and volunteer, and gain visibility.
  • The role of sponsorship vs. mentorship: Organic sponsorship—where senior colleagues naturally champion junior talent—was highlighted as a critical factor in career progression. Unlike mentorship, which often focuses on guidance and advice, sponsorship involves actively advocating for someone’s career advancement. Sponsors open doors, provide visibility, and push for high-potential individuals to take on leadership roles.
  • Allyship and industry-wide change: Meaningful change requires the engagement of men in the industry, given that they still make up the majority. We can’t do it alone.
  • The advantage of standing out: While being a minority in the industry can be challenging, it also presents an opportunity to be memorable. Women should leverage this visibility to advance their careers.
  • Paying it forward: Senior female leaders highlighted the importance of investing in the next generation by mentoring, sponsoring, and creating opportunities for emerging talent. This culture of ‘paying it forward’ helps build a sustainable pipeline of female leaders in the industry. The industry must work collectively to showcase the opportunities available and support female talent at every stage.

Final thoughts

The event reaffirmed that while progress is being made, there is still much work to do. Women continue to face unique challenges in the financial services industry as a whole, but through strong role models, mentorship, and strategic risk-taking, the path to leadership is becoming clearer.

For firms looking to drive change, the message was clear: support must come from the top down, and a proactive approach to sponsorship, networking, and inclusion will be key to shaping a more diverse and equitable future in the private market sector.

[1] https://www.bvca.co.uk/static/b0edfc87-8f4f-45be-902f33bdadb14eee/Diversity-in-UK-Private-Equity-and-Venture-Capital-2025-Report.pdf

Unlocking Luxembourg: A Strategic Choice for Private Capital Funds

Written by

Luxembourg has cemented its status as a leading hub for fund management, particularly in the realm of private closed-ended funds. With its combination of robust legal and regulatory frameworks, international recognition, and strategic geographical advantages, Luxembourg offers an attractive proposition for fund managers looking to establish their next investment vehicle. Greg McKenzie, our Luxembourg Country Head, shares more on the benefits and opportunities this thriving jurisdiction can offer to ensure success.

The appeal of Luxembourg as a fund destination

Luxembourg, which is home to €5,840.177 billion in net assets under management as at November 2024[1], has been a cornerstone of the global financial sector for over 60 years, gaining international recognition for its stability, innovation, and adherence to high standards. It is also “white-listed” by the Financial Action Task Force (FATF), underscoring its commitment to combating money laundering and financing terrorism.

One of Luxembourg’s most compelling features is its robust legal and regulatory framework, which provides a secure environment for fund operations as well as offers unrestricted marketing opportunities into key regions like the US and the Middle East.

The country boasts an extensive network of double taxation treaties, ensuring tax efficiency and reducing the risk of double taxation on income, gains, and dividends. However, the applicability of these treaties depends on the specific legal form and tax status of the fund. Certain fund vehicles may be considered tax-transparent, meaning the tax treaties may apply at the investor level rather than the fund level. Therefore, careful consideration of the fund structure is essential to fully benefit from these treaties.

Luxembourg-based AIFs benefit from the ability to market into the European Economic Area (EEA) through the passporting mechanism provided under the Alternative Investment Fund Managers Directive (AIFMD). It is important to note that the AIFMD passport is available to AIFs managed by authorised AIFMs. This passport allows marketing to professional investors across the EEA without additional national requirements. However, marketing to retail investors or non-EEA investors may still be subject to national regulations and private placement regimes[2].

The country also offers a strategic location with strong transport links to major financial centers like London and other parts of Europe. Being in the European time zone allows for seamless coordination with global markets, making it easier for fund managers to conduct business across different regions.

Typical Fund Structures

The Special Limited Partnership (SCSp)

When it comes to fund structuring, the SCSp is one of the most commonly used legal forms in Luxembourg. Introduced in 2013, the SCSp is modelled after an ‘Anglo-Saxon’ GP/LP structure, offering flexibility and familiarity for managers accustomed to similar vehicles in other jurisdictions. Governed by the law of 10 August 1915, as amended, on commercial companies, the SCSp allows the general partner to manage the fund’s affairs while limited partners/investors participate without being involved in day-to-day operations[3].

The SCSp structure is particularly well-suited for funds, feeders, and co-investment vehicles and fund promoters play a crucial role in supporting the investment management and oversight activities, ensuring sufficient local management and control, which is vital for compliance with local regulations.

Luxembourg’s regulatory environment requires fund managers to demonstrate adequate local management and control, which may necessitate the appointment of local directors or establishing a physical presence in the country. These substance requirements are crucial for tax residency purposes and to benefit from Luxembourg’s extensive network of double taxation treaties[4]. Ensuring sufficient local substance helps in affirming that the central administration and decision-making processes are effectively conducted within Luxembourg[5].

Regulatory options in Luxembourg

Luxembourg offers two primary regulatory options for private capital funds: the Unregulated AIF and the Reserved Alternative Investment Fund (RAIF). Neither option is subject to direct supervision by the Commission de Surveillance du Secteur Financier (CSSF), Luxembourg’s financial regulator, nor do they require prior approval. This flexibility can be advantageous for managers looking to avoid the delays and costs associated with regulatory approvals. Other unregulated options may also be beneficial for funds not intended for marketing.

While Luxembourg offers unregulated fund structures, like the (SCSp) which are not subject to direct CSSF supervision, these structures must still comply with relevant laws, including the law of 12 July 2013 on alternative investment fund managers (AIFM Law), if they qualify as AIFs. This means that while the fund itself is unregulated, the AIFM managing the fund must be authorised or registered under the AIFM Law, ensuring compliance with certain regulatory standards.

However, fund managers should engage legal counsel early in the planning process to determine the most suitable structure and regulatory solution for their specific needs. Legal advisors typically assist with the drafting of constitutional documents, such as the Limited Partnership Agreement (LPA) and side letters, and provide guidance on marketing and tax considerations. This ensures compliance with local regulations and optimises the fund’s structure from a tax perspective.

Belasko in Luxembourg

Luxembourg stands out as a premier destination for fund managers looking to establish their next private closed-ended fund. With its internationally recognised finance sector, robust legal and regulatory framework, and strategic location, Luxembourg offers a wealth of opportunities for private capital fund managers and investors alike. However, its crucial to work closely with expert third party providers, leveraging their expertise in alternative investments to successfully navigate any challenges and unlock the potential of this dynamic jurisdiction.

Belasko in Luxembourg, incorporated in November 2020, has rapidly established itself as a trusted partner for Alternative Investment Funds (AIFs) in the Luxembourg market.

Our team, comprised of seasoned professionals, has extensive experience in servicing global private capital firms and investment companies. We excel in managing complex AIFs and holding structures, offering comprehensive end-to-end fund administration and corporate services.

With a deep understanding of the Luxembourg regulatory landscape, 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 Luxembourg, please get in touch with Greg McKenzie (Country Head) at: [email protected].

[1] https://www.alfi.lu/en-gb/pages/industry-statistics/luxembourg

[2] https://www.cliffordchance.com/content/dam/cliffordchance/PDFDocuments/the-luxembourg-toolbox-A5-digital.pdf?

[3] https://www.cliffordchance.com/content/dam/cliffordchance/PDFDocuments/the-luxembourg-toolbox-A5-digital.pdf?

[4] cliffordchance.com

[5] https://www.cliffordchance.com/content/dam/cliffordchance/PDFDocuments/the-luxembourg-toolbox-A5-digital.pdf?

Where Business Belongs – Greg McKenzie & British Chamber of Commerce for Luxembourg

Written by

MEMBER PERSPECTIVE – WHERE BUSINESS BELONGS

Our Luxembourg Country Head, Greg McKenzie, shares his insights on the impact of digital transformation in financial services and how trust, transparency, and collaboration are the foundations of long-term success.

What motivated you to join the British Chamber of Commerce Luxembourg?

Belasko joined the British Chamber of Commerce Luxembourg to engage with a dynamic network of professionals, share insights, and collaborate on opportunities that promote business development in Luxembourg and beyond. The Chamber provides a platform for fostering relationships, staying updated on key developments, and participating in discussions on the future of business in Luxembourg. As Belasko continues to grow and strengthen its presence in the region, we see the Chamber as an ideal way to support our strategic objectives and contribute to the local business community.

What is the hottest topic in your business right now?

One of the hottest topics at Belasko right now is digital transformation in financial services. We’re seeing increasing demand for more efficient, transparent, and scalable solutions that leverage technology to enhance client service. A key driver of this change is the rise of AI and automation, as clients look for smarter, automated solutions that streamline processes, enhance decision-making and provide deeper insights. At Belasko, we’re working to innovate and build on these trends, providing our clients with sophisticated tools and solutions that ultimately create more value and drive success.

What is the best piece of business advice you have received?

The best piece of business advice I’ve received is to always focus on building strong relationships, both with clients and within the team. Trust, transparency, and collaboration are the foundations of long-term success. This advice has guided my approach to leadership at Belasko, where fostering a culture of open communication and teamwork ensures that we not only meet our clients’ needs but exceed their expectations.

Shaping the future: Jersey’s role in global finance amidst market shifts

Written by

Jersey’s finance industry finds itself at the intersection of global economic shifts, geopolitical uncertainty, and a stabilising interest rate environment.

With growth in private capital assets set to reach even greater heights, Preqin predicts growth of $30 trillion in global alternative assets under management (AUM) by 2030 (up from $16.8 trillion expected by 2025)[1]. Following a challenging period, venture capital managers anticipate a rebound in 2025, although private debt remains the darling asset class. Despite a more cautious recent investor sentiment awaiting a more stable and predictable interest rate environment private debt is projected to reach $2.9 trillion by 2029.

Recent discussions at key industry events highlighted the evolving landscape and the opportunities for growth on the horizon for Jersey’s financial services sector.

Navigating Trump 2.0: A changing global investment landscape

Geoff Cook recently shared his views on how the return of Donald Trump to the White House is set to reshape global investment dynamics[2]. Trump administration’s ‘America First’ policies, renewed focus on trade protectionism, and shifts in tax regulations will impact financial centres worldwide. For small-state international finance centres (IFCs) like Jersey, this presents both challenges and opportunities.

  • Global risk and investment flows: A second Trump presidency will reshape global investment dynamics. His policies on trade, diplomacy, and foreign relations could create volatility but also opportunities for IFCs as investors seek stable jurisdictions amid geopolitical uncertainty.
  • Tariffs and supply chain adjustments: We are already seeing Trump take a firm stance on tariffs, driving protectionist measures and reshaping global trade. This could disrupt supply chains, raise inflation, and impact industries like EVs, tech, and agriculture. IFCs could play a pivotal role in facilitating capital flows, supporting companies relocating production and diversifying supply chains to mitigate tariff risks.
  • Tax and corporate structures: Trump’s return to office will almost certainly challenge the OECD’s Pillar two initiative on Base Erosion and Profit Shifting. Although the OECD’s push for a 15% global minimum tax rate has gained traction, Trump is likely to re-evaluate this initiative for the US. His proposed two-tier corporate tax system could see ‘Made in America’ firms benefit from a 15% rate, while foreign companies continue to pay 21%. This approach may drive renewed interest in tax-efficient jurisdictions, making IFCs more attractive for multinational corporations and capital flows.
  • Tech and geopolitical friction: The ongoing US-China tech standoff will shape investment trends, deepening the global technological divide. IFCs are well-positioned to attract fintech and blockchain ventures, reinforcing their roles as key players in the evolving global tech landscape.
  • Trade and digital transformation: Global trade is shifting from multilateral agreements to regional and bilateral deals, potentially sidelining institutions like the World Trade Organisation. IFCs could play a growing role in facilitating regional trade agreements and digital trading hubs. Meanwhile, a more crypto-friendly U.S. administration may accelerate the integration of digital assets into global trade, offering new opportunities for private capital investors.

UK economy: A mixed outlook

The UK’s economic outlook remains uncertain, yet it continues to attract significant international investment. According to PwC’s Annual Global CEO Survey[3], the UK has risen to become the second-most attractive global destination for international investment, ranking behind only the US. With a new Labour government prioritising economic growth, investment opportunities may continue to expand. Although a softer tone is being taken by Trump towards the UK for now, potential disruptions from his trade policies risks softening UK exports, contributing further to global inflationary pressures.

While UK growth in 2025 is expected to be sluggish, it remains more positive than the EU average. As a close financial partner to the UK, Jersey is well positioned to support investment structures that navigate these shifting dynamics.

Jersey’s competitive edge: seizing the moment

Jersey’s finance industry is well-positioned to capitalise on global shifts, supported by a stable regulatory and tax environment. Key opportunities include expanding Jersey’s role in UK real estate, private equity, and venture capital—particularly in tech. The Island’s appeal as a hub for VC investment continues to grow, with Monterey data reporting that 246 VC funds were launched in Jersey in 2024. At the same time, Jersey should continue strengthening ties with promoters in the US, Middle East, and Asia, who are looking to leverage the opportunities presented by AIFMD II.

To attract business to the Island, Jersey needs to continue enhancing product offerings and regulatory frameworks. Jersey Finance noted at their Global Horizons event, the key developments in 2024 that will continue to be a focus in 2025. These included the expansion of Limited Liability Companies (LLCs) for broader use cases, updates to the Jersey Private Fund (JPF) Guide to align with professional investor needs, legislative amendments for limited partnerships to incorporate digitalisation and tokenisation frameworks, and potential new regimes for carried interest vehicles and European Long-Term Asset Funds (ELTAF).

In terms of market focus and expanding the island’s global reach, the US is set to offer great opportunities for Jersey, particularly for private wealth in hubs like Miami, New York and even LA. With continued growth taking place in the Middle East, the region is still a key focus for Jersey for both the private wealth and funds industries. Saudi Arabia is showing growing potential as well as Dubai which continues to be one of the biggest market opportunities for Jersey globally. In Kenya and South Africa, opportunities for private wealth, private equity and infrastructure are emerging and Jersey is well-positioned to support HNWIs, family offices, and businesses seeking international finance solutions as interest in global diversification is on the rise.

Key themes set to shape the future of Jersey

Tokenisation: Tokenisation is seen as a critical area for Jersey’s future in the funds industry. As the financial world increasingly embraces digital transformation, tokenisation is gaining traction. Jersey, with its well-established legal and regulatory framework, is positioned to be a leading jurisdiction for the tokenisation of assets.

Islamic finance: Islamic finance continues to offer substantial growth opportunities and Jersey is solidifying its position as a stable and credible jurisdiction of choice for Islamic finance products. The island’s flexibility in structuring Sharia-compliant investment vehicles make it an attractive destination for the structuring of Islamic finance deals, including Private Funds (JPFs) and structured finance transactions.

Women in wealth: The increasing leadership of women in wealth management is a powerful trend, with more HNW families being led by women. Over the past decade, female participation in wealth management and leadership roles has doubled, reflecting broader societal shifts toward gender equality. In particular, as more Middle Eastern women seek stable, confidential, and Shariah-compliant solutions, Jersey offers a robust financial ecosystem with secure wealth structuring, governance, and succession planning options.

Positioning Jersey for the future

As global markets evolve, Jersey’s finance industry must remain agile, proactive, and outward-looking. By leveraging its regulatory strengths, digital infrastructure, and global partnerships, Jersey is well-positioned to thrive in 2025 and beyond. With a focus on alternative assets, private wealth, and innovation, the island will continue to cement its status as a premier international finance centre in a rapidly changing world.

At Belasko, we provide innovative fund administration, corporate services, and private wealth solutions in Guernsey, Jersey, the UK and Luxembourg. With a commitment to delivering bespoke, high-quality services, Belasko partners with fund managers, high-net-worth individuals, families, and entrepreneurs. Powered by leading technology, Belasko’s helps clients navigate complex financial landscapes, unlocking new opportunities and achieving success.

We look forward to another year of growth and collaboration with our partners across the world. If you’re interested in discussing our Jersey offering in more detail, get in touch with Paul Lawrence ([email protected]).

[1] https://www.preqin.com/insights/research/blogs/preqin-forecasts-global-alternatives-aum-to-rise-to-usd29-22tn-by-2029

[2] https://international-adviser.com/geoff-cook-on-global-trends-amid-trump-inauguration/

[3] https://www.pwc.co.uk/press-room/press-releases/research-commentary/2024/global-ceos-rank-uk-most-important-market-after-us—pwc-s-28th-.html

Guernsey’s Global Growth Opportunities

Written by

A big thank you to the Guernsey Business Development team for delivering an insightful briefing on the opportunities that lie ahead in 2025.

Guernsey’s financial services proposition remains highly attractive to businesses and investors in the UK, South Africa, the US, and the Middle East. The team has been instrumental in fostering strong connections in these regions, helping to showcase the jurisdiction’s expertise in fund administration, private wealth, and insurance solutions.

Expanding presence in the UK and North of England

Rowan Stone highlighted the growing opportunities in the North of England, where Guernsey firms have seen notable success. Manchester, in particular, has experienced stellar economic growth, driven by a diverse range of industries, including marketing, creative media, digital and technology, financial services, and life sciences. This vibrant business landscape presents a strong foundation for further collaboration and investment.

Strength in captive insurance and innovative structures

William Lewis underscored Guernsey’s global reputation in captive reinsurance, emphasising the advantages of its robust regulatory framework and innovative products such as the Protected Cell Company (PCC). These structures continue to attract interest from international firms looking for flexible and efficient risk management solutions.

Emerging opportunities in South Africa and the Middle East

Traditionally dominated by wealth management, markets such as South Africa and the Middle East are now witnessing the rise of family offices and institutional asset management. Grant McLeod, who leads business development in South Africa, noted significant growth in International Pension structures, Open and Closed-Ended Funds, and Wealth Management solutions that leverage Guernsey’s expertise. Further expansion opportunities are emerging in Nigeria, Botswana, and Morocco, as more investors seek sophisticated cross-border financial solutions.

Strengthening US ties through intermediary networks

In the US, Jonny Gamble’s efforts have focused on deepening relationships with intermediaries and asset managers. This strategic approach has not only raised awareness of Guernsey’s financial services but also positioned the jurisdiction as a highly efficient hub for global capital raising. With increasing demand for structured and well-regulated financial solutions, Guernsey’s proposition is resonating with US-based firms seeking stability and expertise.

Looking ahead to 2025

As we move into 2025, Guernsey’s ability to adapt, innovate, and build on its core strengths will continue to drive international business development. With a strong global network and a forward-thinking regulatory environment, Guernsey remains a prime destination for financial services firms looking to expand their reach.

At Belasko, we provide alternative investment fund managers with tailored and innovative fund administration solutions in Guernsey, Jersey and Luxembourg. Our expertise spans private equity, venture capital, private credit, and real estate, supporting clients with bespoke structures that align with their investment strategies. Powered by leading technology, we streamline fund operations, enhance transparency, and help our clients achieve their optimal target operating model with ease.

We look forward to another year of growth and collaboration with our partners across the world. If you’re interested in discussing our Guernsey funds offering in more detail, get in touch with Ross Youngs ([email protected]).

The Surge of Continuation Funds in Private Equity

Written by

A new era in private equity solutions

In the evolving landscape of private equity, continuation funds—also known as GP-led secondary transactions—are experiencing unprecedented growth. According to recent data, the number of these funds grew by 48%, reaching 73, with Preqin noting 25 additional vehicles already in 2024[1]. This surge reflects a fundamental shift in how general partners (GPs) manage high-potential assets, allowing them to extend their holding period beyond a traditional fund’s lifecycle.

By moving selected assets into a continuation fund, GPs can continue executing strategic initiatives for key assets, providing a flexible solution to market demands and investor preferences alike.

Nick McHardy, our Head of Funds at Belasko, and Sam Kay, a London-based private equity funds partner at the international law firm Dechert, share their views on the growing interest in continuation funds and adoption of these fund structures globally.

Why continuation funds are the preferred choice for modern GPs and LPs

Unlocking extended value creation

A primary driver for the popularity of continuation funds is the extended runway they provide for asset management and growth. Traditional private equity structures, often capped at a 10-year lifespan, can constrain GPs from fully capitalising on the potential of high-performing assets.

Continuation funds empower GPs to continue their strategic initiatives, ultimately enhancing value for investors. In the first half of 2024, GP-led transactions accounted for $31 billion, making up 43% of the total secondary market volume[2]. 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[3].​

Liquidity with flexibility

Continuation funds introduce a new level of liquidity and flexibility for limited partners (LPs). LPs can choose to cash out or reinvest in the continuation fund, accommodating their unique capital requirements. In Coller Capital’s 40th Global Private Capital Barometer, the demand for continuation funds remains strong, with about half of surveyed LPs planning to access the secondaries market, including continuation fund structures, within the next two years[4].

Sam Kay comments that: “We are now seeing dedicated funds being raised to invest specifically into continuation funds and GP-led secondaries, which indicates the attractiveness of these opportunities for institutional investors.  In general, LPs are also increasingly sophisticated and are able to deal with the complexity of a continuation fund transaction”.

Strengthening GP-LP alignment

Continuation funds also foster a strong alignment of interests between GPs and LPs, ensuring GPs can retain control over key assets and adhere to the original fund objectives. This continuity can reassure both existing and new investors seeking stability and alignment in asset management strategies.  As Sam Kay notes “There are a number of tools for a GP to build alignment with its investor-base.  Over a number of years, we have witnessed the increase in co-investment activity and now we are seeing continuation funds being increasingly used.  With continuation funds, there is a real sense of GPs and LPs working together to create that ‘win-win’ situation”.

Adapting to market dynamics with continuation funds

As private equity markets mature, investors are prioritising flexibility and optimised returns over longer periods. The traditional private equity model’s rigid timelines often don’t cater to the evolving demands of sophisticated investors. Continuation funds, by offering dynamic investment options, present a modern alternative that accommodates changing market conditions and investor requirements.

In Dechert’s 2025 Global Private Equity Outlook[5], 65% of respondent private equity firms noted that the increase in GP-led secondaries dealmaking was being driven by the demand for flexible holding periods for portfolio companies. The increased transaction volume in this sector reflects its growing role in private equity, as GPs and LPs seek solutions that extend value beyond the limitations of conventional fund structures.

Global adoption of continuation funds: trends and insights

Regional hotspots for continuation funds

The adoption of continuation funds has varied across regions and North America remains a dominant player with over 60% of global GP-led secondary market activity originated in the US[6]. This reflects a continued strong appetite for these deals in the region, especially multi-asset continuation fund transactions. With its mature private equity market and sophisticated investor base, the U.S. has been quick to recognise the benefits of continuation funds.

In Europe, countries like the UK and Germany continue to show significant momentum as investors embrace continuation funds for enhanced asset management and liquidity solutions. Meanwhile, in Asia, regions such as China, Japan, and India are beginning to explore these vehicles as private equity activity intensifies, driving a need for flexible investment options.

“The responses in our 2025 Global Private Equity Outlook back up these trends” says Dechert’s Sam Kay.  “It is encouraging for, globally, almost a fifth of private equity firms (17%) are expecting to increase dealmaking through GP-led secondaries over the next two years but there are regional differences: in North America, the figure rises to 22% whereas in EMEA it is 14% and Asia-Pacific it is 10%”.

Comparing continuation funds and secondary funds

Continuation funds: meeting evolving investment needs

Continuation funds mark a transformative shift in the private equity landscape. Their rise addresses a critical need for extended value creation, tailored liquidity options, and alignment with investor interests. As market dynamics continue to evolve, the strategic advantages of continuation funds are anticipated to fuel their growth, offering investors and fund managers flexible solutions to adapt to a complex investment landscape.

How Belasko can support your fund continuation strategy

As a next-generation fund administration partner, Belasko provides a tech-driven approach focused on delivering customised client solutions. Our full scope, tailored fund administration services are designed to drive performance throughout the fund lifecycle – from establishment and capital deployment to realisation and wind up, we’re the experts when it comes to streamlining your operations.

Our experienced team of 120 experts, strategically located across the United Kingdom, Luxembourg, Jersey, and Guernsey, ensures precise, professional service across multiple asset classes. With over $12 billion in assets under administration (AUA), Belasko is well-equipped to offer personalised, innovative support for your continuation fund needs.

Get in touch with Nick McHardy ([email protected]) to discuss further.

About Dechert

Dechert is a global law firm that advises asset managers, financial institutions and corporations on issues critical to managing their business and their capital – from high-stakes litigation to complex transactions and regulatory matters. Its 1,000+ lawyers across 19 offices globally focus on the financial services, private equity, private credit, real estate, life sciences and technology sectors. Dechert’s global Secondaries and Sponsor-led Liquidity Solutions team has been involved in secondaries transactions for over two decades, advising sponsors, buyers and sellers on all types of GP and LP-led transactions and liquidity solutions, ranging from ordinary course sales of LP interests, to the most complex single and multi-asset continuation funds involving significant M&A transactions, NAV facilities, preferred equity funding and structured solutions. Find out more at www.dechert.com.

[1] Preqin, “Continuation Fund Vehicles 2023 Report”

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

[3] https://www.jefferies.com/insights/the-big-picture/mid-year-review-a-record-breaking-1h-of-2024-for-the-secondary-market/

[4] https://www.collercapital.com/40th-barometer-allocations-distributions/

[5] https://www.dechert.com/knowledge/publication/global-private-equity-outlook.html

[6] https://www.secondariesinvestor.com/gps-look-to-multi-asset-continuation-funds-for-dpi-campbell-lutyens/

Six Key Venture Capital Trends to Watch in 2025

Written by

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

Written by

[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

Written by

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.

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