Channel Islands as a launchpad: Why emerging asset managers are choosing Guernsey and Jersey

Launching an investment management business has never been more complex. Emerging asset managers face increasing expectations from investors, regulators and counterparties to demonstrate institutional-quality governance, robust operational infrastructure and clear growth ambitions from the outset. Yet many firms are seeking to achieve this while remaining lean, agile and focused on investment performance.

Against this backdrop, Guernsey and Jersey continue to strengthen their positions as leading jurisdictions for emerging asset managers. While the Channel Islands have long been established fund domiciles, they are increasingly being viewed not simply as locations to establish a fund, but as strategic platforms from which to build and scale an investment management business.

During a recent HFM Boardroom discussion hosted by Investment Funds and Corporate partners Kirsten Faichnie and Charlotte Goncalves, Nadia Aucamp, Managing Director of Lapwing Capital, and Dan Khoury, Chief Operating Officer of Ox Galton Partners Limited, shared their experiences of establishing and scaling investment management businesses in the Channel Islands. The discussion explored why an increasing number of emerging managers are choosing Guernsey and Jersey at the outset of their journey, and how those decisions are supporting long-term growth ambitions.

Jurisdiction selection as a strategic decision

Historically, many managers launched with structures that worked for their immediate needs and revisited their arrangements as assets under management grew. Increasingly, however, managers are taking a much longer-term view.

For many new firms, choosing a jurisdiction has become a foundational business decision that influences fundraising, governance, operations and future expansion. Establishing the right structure from day one can reduce future disruption and create a platform capable of evolving alongside the business.

The importance of institutional credibility

One of the strongest themes emerging from the discussion was the importance of credibility.

For emerging managers, securing investor confidence is often one of the greatest challenges. While a compelling investment proposition remains paramount, investors also want confidence that a manager has established an appropriate operating framework to protect their interests.

Guernsey and Jersey benefit from decades of experience serving the global funds industry and are well recognised by professional investors worldwide. Their reputations for high regulatory standards, strong governance and sophisticated financial services ecosystems provide a level of familiarity that can be particularly valuable for first-time and growing managers.
This familiarity can have a practical impact during fundraising discussions. Rather than spending significant time explaining an unfamiliar structure or jurisdiction, managers can focus conversations on investment strategy, performance and differentiation.

Balancing governance and practicality

A recurring challenge for new managers is balancing institutional expectations with commercial realities.

Building a fully integrated operational platform from launch can be costly and resource-intensive. At the same time, investors expect strong governance, oversight and operational controls regardless of a firm's size.

The Channel Islands offer an environment that helps bridge that gap.

Both jurisdictions have developed mature ecosystems of administrators, directors, legal advisers, compliance specialists and other service providers with deep expertise in alternative investment structures. This enables managers to access institutional-quality infrastructure through outsourced operating models while maintaining lean internal teams.

Supporting international investor bases

As fundraising becomes increasingly global, managers are also looking for structures that can accommodate investors from multiple jurisdictions.

For firms targeting family offices, private investors and institutional allocators across different regions, jurisdictional neutrality remains an important consideration. Offshore structures can provide flexibility for diverse investor groups while creating a framework that is internationally recognised.

The Channel Islands have long played a role in facilitating cross-border investment activity and continue to be viewed as trusted locations for internationally focused strategies.

More than a fund domicile

Perhaps the most interesting takeaway from the discussion was the extent to which managers view the Channel Islands as more than simply a place to establish a fund.

Participants highlighted the strength of the local professional networks and the collaborative nature of the financial services community. For emerging managers, access to experienced advisers, service providers and industry participants can provide valuable support during the critical early years of growth.

As businesses scale, governance and operational infrastructure often become increasingly important. Having access to a deep pool of expertise within the jurisdiction can help managers enhance their operating models while maintaining the standards expected by sophisticated investors.

Looking ahead

The expectations placed on emerging asset managers continue to rise. Investors want specialist expertise and compelling investment opportunities, but they also expect robust governance, operational resilience and institutional-quality infrastructure.

Against that backdrop, Guernsey and Jersey remain compelling options for firms seeking to build sustainable, growth-oriented businesses.

The discussion reinforced that jurisdiction selection is no longer simply a technical or administrative exercise. It is increasingly a strategic decision that shapes how a manager is perceived by investors, how efficiently it can operate and how effectively it can scale.

For many emerging asset managers, the Channel Islands offer a combination of credibility, expertise, flexibility and practicality that is difficult to replicate elsewhere.

Ultimately, the appeal is straightforward: the ability to establish institutional credibility from day one while retaining the agility needed to grow.