Jersey continues to cement its reputation as a premier offshore hub for alternative investment funds, particularly for international managers and sponsors seeking speed, flexibility, and robust regulatory standards. The island’s approach to Reserved Alternative Investment Funds (RAIFs)—mirrored in the Jersey Private Fund (JPF) regime—offers a compelling alternative to traditional regulated structures, with a focus on professional investors and fast-track authorisation. With significant reforms coming into effect in August 2025 and continued growth in assets under management, Jersey is well-positioned for a new era of fund structuring and cross-border capital raising.
In this analysis, we examine the latest market and regulatory developments shaping Jersey’s RAIF-like landscape, the implications for fund managers, and how Damalion guides sponsors through one of the faster routes to market. For more on global investment funds trends, see the Damalion blog.
Jersey’s RAIF and JPF Model: Key Features and AUM Trends
Jersey does not have a direct equivalent to Luxembourg’s Reserved Alternative Investment Fund (RAIF), but its Jersey Private Fund (JPF) regime shares many of the same features—streamlined approval, professional investor focus, and flexibility in structuring. As of June 2025, Jersey boasted approximately 750 JPFs with around GBP 85 billion in assets under management (AUM). This figure significantly surpasses that of Collective Investment Funds and highlights the JPF’s dominance in Jersey’s alternative sector.
The wider funds industry in Jersey reached GBP 221 billion in private equity and venture capital AUM, a robust increase from GBP 212 billion the previous year. Over 100 new JPFs were launched in 2025 alone, reflecting both the regime’s popularity and the island’s continued appeal for fund promoters seeking rapid market entry and efficient operations.
Jersey’s National Private Placement Regime (NPPR) further enhances its attractiveness: by the end of 2024, 240 alternative investment fund managers were marketing 448 funds into the EU via NPPR—a year-on-year increase of 8%. This underscores Jersey’s strategic role as a near-shore alternative to onshore EU jurisdictions for cross-border capital raising.
Regulatory Enhancements: 2025 JPF Reforms and AIFMD II
Major regulatory updates are set to bolster Jersey’s competitive edge. Effective 6 August 2025, the JPF regime will introduce:
- Removal of the 50-investor cap: JPFs may now accept unlimited offers to a “restricted group” of professional investors, greatly expanding scalability.
- Broadened definition of professional investor: Now includes high-net-worth individuals, family trusts, and financially sophisticated employees, opening the door to a wider investor base.
- 24-hour authorisation: JPFs can be approved within a single business day via registered Designated Service Providers (DSPs), accelerating time to market.
- Listing flexibility: With Jersey Financial Services Commission (JFSC) consent, JPFs may list interests, supporting secondary liquidity and innovative structuring.
These enhancements were developed collaboratively by the Government of Jersey, JFSC, Jersey Finance, and the Jersey Funds Association (JFA)—notably under the leadership of Joel Hernandez (Chair, Mourant) and Dilmun Leach (Vice Chair, Walkers CI).
Meanwhile, the revised AIFMD II entered into force in April 2024. While Jersey is classified as a third-country jurisdiction and thus largely insulated from direct impact, fund managers marketing into the EU via NPPR will see increased reporting and disclosure requirements. This regulatory clarity—coupled with Jersey’s ongoing enhancements to its own corporate and compliance regimes—ensures a stable, predictable platform for alternative funds.
Structuring Options: Flexibility and Speed for Fund Sponsors
Jersey’s RAIF-like offerings, particularly the JPF, enable a wide spectrum of structuring options for private equity, real estate, venture capital, and credit strategies. Key advantages include:
- Speed to market: The new 24-hour authorisation process allows sponsors to launch and deploy capital rapidly, a critical advantage in today’s competitive fundraising environment.
- Flexibility: JPFs can be structured as companies, unit trusts, or partnerships, and are compatible with tokenisation and digital asset initiatives.
- Tax neutrality: Jersey provides a well-established tax-neutral platform, appealing to a global investor base.
- Robust AML/CFT standards: Ongoing reforms and clarified Schedule 2 guidance ensure compliance with evolving global standards.
In parallel, the removal of investor number caps and the expansion of eligible investor definitions allow for greater scalability and innovation—critical for fund managers considering near-shore alternatives to more heavily regulated onshore products. For comparison, see the evolution of Malta’s alternative investment fund landscape in this analysis.
Strategic Considerations for International Sponsors
For global GPs, LPs, and fund service providers, Jersey’s trajectory signals several key themes:
- Scalability and fundraising reach: The JPF regime’s reforms facilitate broader capital raising from professional investors worldwide, while maintaining a private fund profile.
- Regulatory certainty: While AIFMD II brings heightened scrutiny for EU-facing funds, Jersey’s third-country status and NPPR route provide a stable path for managers to access EU capital.
- Operational efficiency: The streamlined authorisation and administration environment—supported by leading administrators, DSPs, and legal firms such as Mourant and Walkers—reduces friction and cost.
- Governance and risk management: Updates to AML/CFT, civil penalty regimes, and company law reinforce Jersey’s commitment to high standards, aligned with international best practices.
This combination of regulatory flexibility, innovation, and stability continues to drive Jersey’s relevance as a fund hub, particularly in an era of global uncertainty and evolving investor demands. For a comparative overview of Luxembourg’s RAIF regime, visit The Reserved Alternative Investment Fund and How to Set Up a RAIF in Luxembourg.
Damalion supports international investors, entrepreneurs, and family offices navigating the Global investment funds .
