Jersey Finance Experts Highlight 'New Era' for Private Markets in Khaleej Times Feature

The global private markets sector is undergoing a profound transformation, driven by shifting investor profiles and unprecedented technological innovation, according to experts from Jersey Finance in a recent article published by the Khaleej Times.

The piece features insights from Jersey Finance’s Elliot Refson, Head of Funds and An Kelles, Director – GCC. They outline how a “new era” characterised by significant investor, product, and structural diversification is enabling asset managers to bring innovative products to market “like never before.”

Elliot Refson discussed how a combination of converging factors is reshaping the private markets landscape. These changes are challenging traditional investment models, prompting a strong move toward greater diversification across all levels of the industry.

An Kelles emphasised the dynamic investment climate, particularly within the GCC region. Kelles noted a growing interest among investors in exploring diverse asset classes, positioning jurisdictions like Jersey as well-equipped to provide robust, flexible, and innovative solutions to meet these evolving demands.

The article details several key trends accelerating this transformation:

Shifting investor demographics: As institutional investors increasingly reach their allocation ceilings for alternative investments, asset managers are actively seeking new sources of capital. The analysis points to a significant focus on high-net-worth individuals (HNWIs) and family offices, a segment that, while historically under-allocated to alternatives, is poised for substantial growth.

Product and structural innovation: The private markets are witnessing a shift beyond traditional pooled funds. The rise of sophisticated structures such as managed accounts, co-investments, funds-of-one, and hybrid vehicles reflects a growing demand for customisation. This structural innovation is making private markets more accessible to a broader range of investors, often accompanied by reduced fees, particularly for managed accounts.

The role of digitalisation and tokenisation: Perhaps the most transformative development highlighted is the impact of digitalisation. Blockchain-based infrastructure and asset tokenisation are significantly lowering barriers to entry, enhancing liquidity, and reducing minimum investment thresholds in the private markets space. Forecasts suggest that the tokenised market capitalisation could reach $2 trillion by 2030, further fuelling growth and access.

Jersey Finance’s experts concluded that the private markets landscape is evolving rapidly, necessitating that regulators and fund domiciles adapt to support modern fund structures while balancing innovation with regulatory oversight. This dynamic environment is fostering new partnerships and driving more inclusive growth in alternatives.

Read the full Khaleej Times article here: A new era for private markets: How diversification and innovation are reshaping the future