US Update: Private Markets Evolution and Wealth Mobility

The scale and depth of the US market remains unparalleled, but the needs of investors, families and fund managers are becoming increasingly complex.

That’s what we’ve kept coming back to during the first half of 2026, while building out our existing relationships and developing new valuable contacts. We’ve diversified our messaging through our ongoing programme of engagement, notably during our US Flagship Week of events in May in Miami and New York.

For Jersey, complexity in the US market presents an opportunity. Our proposition as a jurisdiction has traditionally been built around providing certainty, sophisticated structuring and cross-border connectivity. As US families reconsider where and how they hold their wealth, and US private markets managers look to broaden their investor base, those characteristics are becoming increasingly relevant.

We can take a closer look at how this complexity is playing out in practice.

The US remains the world’s largest private wealth market, but it is becoming increasingly difficult to describe it as a single proposition.

Differences between federal and state-level taxation, regulation, political priorities and the broader business environment are increasingly influencing decisions about where wealthy individuals and families live, invest and establish businesses.

In 2026, this has been particularly visible in states such as California and New York. California’s proposed 5% one-off billionaire wealth tax has been one of the clearest examples, generating significant uncertainty. New York has faced its own debate around taxation of wealth, including a proposal announced in April for an additional tax on luxury second homes valued at US$5 million or more.

In both examples, the behavioral responses are clear. There is an acceleration of UHNW people moving out of high-tax states and they are taking their businesses with them. This is typically described in terms of ‘blue-state’ (Democratic) to ‘red-state’ (Republican) migration and the figures are significant. In California alone, for instance, from the day Proposition 40 was announced to the end of 2025 – so in just five weeks – over half a trillion dollars of family wealth was redomiciled to other states.

When it comes to wealth planning, it’s not necessarily about how much tax is being paid, but more about the uncertainty and potential for ongoing change. For families with complex holdings, business interests and investments across multiple states and countries, a change of domicile can have implications beyond personal residence. It can affect trusts, holding companies, investment structures, governance arrangements, succession plans and the location of family offices.

Together, this is encouraging a more strategic approach to wealth planning, with US families being increasingly proactive in considering whether existing structures remain appropriate.

The concept of relocation has taken on a more nuanced meaning – it does not necessarily mean moving everything from one jurisdiction to another. Instead, US families are focussed on achieving optionality by maintaining the ability to live, invest, conduct business and hold assets across several jurisdictions.

The largest outbound migration of US citizens in decades happened last year – but net migration is overwhelmingly inbound, rather than outbound. Further, the broader picture around outbound migration is also about contingency planning. This doesn’t result in actual relocation, but rather in creating options for access to other jurisdictions and markets.

From an advisory and indeed jurisdictional perspective, that means being able to deliver adaptable and flexible solutions and structures. This is where Jersey is able to respond well and where we are seeing an uptick in interest, as a neutral and agile jurisdiction able to support US families whose lives and wealth are increasingly in flux.

In particular, Jersey’s legal, fiscal and political stability, as well as its pragmatic regulation, structuring optionality and reputation for good governance, is landing well with US families. The fact that Jersey, as a neutral and independent hub, is able to form part of a broader architecture for international wealth is also resonating.

Similarly, the US funds sector, an area where Jersey is perhaps more familiar and has earned a good reputation over a long period of time, has continued to evolve this year.

At the heart of this change is how managers are responding to a persistently demanding investment environment, with longer holding periods, greater emphasis on operational value creation and increasing complexity across strategies and structures.

Perhaps the most significant structural development is how the private markets are moving increasingly into the portfolios of individuals, private clients and family offices.

A survey in April 2026 by Adams Street Partners, for instance, found that 70% of financial advisers expect a greater share of their clients to have private market exposure over the next three years. Intergenerational wealth transfer, regulatory developments and the emergence of semi-liquid evergreen funds are key drivers of this shift.

This is creating a larger potential capital pool for managers on the one hand but also introducing a new set of requirements on the other. Individual and family investors, for instance, will invariably need different liquidity provisions, reporting, tax considerations, governance frameworks, minimum investment levels and distribution mechanisms, with managers needing more diverse structures and solutions as a result.

It’s something we have been talking about in Jersey for some time, and we are finding that Jersey is finding favour amongst US managers in this new environment. It’s an extension to our original proposition to asset managers in the US: being a gateway to Europe. Now, Jersey is able to meet the call of US managers who need vehicles that can bridge the domestic US market with international capital, including but also beyond Europe.

Jersey’s structural flexibility and optionality is highly relevant here. As well as pure fund structures, including the flagship Jersey Private Fund, Jersey’s Limited Liability Company product as well as its flexible corporate and SPV capabilities are expanding the range of options available to managers.

This will become even more important as the tokenisation of real-world assets continues to develop, requiring robust corporate structuring as well as distribution, investor access and regulatory certainty.

Then there is also the ‘predictability dividend’ that Jersey has earned in being able to provide regulatory clarity, stability and a coherent long-term policy direction. For fund managers, this translates into lower execution risk, greater confidence in cross-border distribution and more certainty when deploying capital.

With fragmentation and uncertainty in the US private wealth space encouraging families to think more carefully about jurisdictional, structural and international optionality; and with the private markets undergoing a fundamental shift in investor diversification and structural sophistication, the opportunity for Jersey to provide solutions to the US is widening.

Complexity is the root challenge across both sectors. The feeling is that there is now a stronger than ever opportunity for Jersey to play a more strategic role, supporting US advisors, families and fund managers navigating an increasingly interconnected international financial environment.

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Q: Why are US families looking at international wealth structuring?

A: US families are increasingly seeking flexibility as differences in taxation, regulation and the wider business environment influence decisions about where they live, invest and hold assets. For families with interests across multiple states and countries, international structures can provide greater optionality and support long-term wealth, governance and succession planning.

Q: Why might US families use Jersey for private wealth structures?

A: Jersey offers US families a stable, well-regulated and flexible jurisdiction for international wealth structuring. Its legal, fiscal and political stability, pragmatic regulation, structuring optionality and strong governance framework can help families manage wealth and interests spanning multiple jurisdictions.

Q: How can Jersey help US fund managers access international investors?

A: Jersey can provide US fund managers with structures that bridge the domestic US market and international capital, including European investors. Options include the Jersey Private Fund, Jersey Limited Liability Company, corporate structures and special purpose vehicles (SPVs), giving managers flexibility to select structures appropriate to different investors and strategies.

Q: How is the growth of private markets among individual investors affecting fund structures?

A: As private markets become more accessible to individuals, private clients and family offices, managers need to accommodate different requirements around liquidity, reporting, taxation, governance, minimum investments and distribution. This is increasing demand for flexible fund and corporate structures capable of serving a more diverse investor base.

Q: Why is regulatory predictability important to US fund managers?

A: Regulatory predictability can reduce execution risk and give managers greater confidence when structuring investments and raising capital internationally. Jersey’s regulatory clarity, stability and long-term policy direction can therefore provide greater certainty for US managers navigating cross-border investment and distribution.