If you speak to anyone across the industry, the underlying sentiment is the same: this year has flown by in every sense. With the global economy still operating in a largely reactionary mode, and ongoing geopolitical tensions exerting more influence than ever on economic outcomes, 2025 has not been without its challenges, particularly for directors.

Within the Arolla sphere, our role in providing oversight, guidance and governance has been tested regularly. Decisions are rarely straightforward, and the consequences of those decisions often extend far beyond our island economy. That responsibility has been especially pronounced this year.

Against that backdrop, 2025 has nonetheless been a positive year for Guernsey. We have seen a notable number of new mid-market and lower mid-market private equity managers come to market with their first funds, many having spun out from high-quality European and UK platforms. These managers are pursuing strategies that have already been proven at their previous firms, but with a sharper focus and greater agility.

What has been particularly striking is the pace at which these new managers have been able to structure and raise capital. In several cases, we have seen a velocity that has not been typical of first-time funds in recent years. This reinforces a theme we have observed consistently: there remains significant LP appetite for high-quality managers and compelling strategies, even where the firm itself is new.

Northcote Equity reached a hard-cap close of £160 million for its inaugural fund earlier in the year, raising capital within weeks of launch and demonstrating strong investor conviction in its technology and services strategy. Goldenpeak also delivered a rapid and successful first-and-final close on its debut £375 million fund, securing significant institutional commitments in just over twelve weeks.

Building on this momentum, earlier entrants such as White Star Capital have continued to attract capital, with the raising of its fourth Early Growth Fund while other mid-market managers have likewise established themselves over recent years, each contributing to the strength and depth of the evolving manager landscape. At Arolla, we have been proud to support these teams through governance, structuring and Director services, helping them navigate launch and fundraising with confidence.

With healthy pipelines in place, we expect to see strong fund deployment continuing into 2026.

Jurisdictional choice has played a meaningful role in this. In an environment where regulatory certainty and execution risk matter more than ever, Guernsey continues to demonstrate its relevance. The flexibility of the Registered Fund and Private Investment Fund regimes, combined with regulatory responsiveness, allows managers to move decisively without compromising standards. This balance is increasingly difficult to replicate elsewhere.

We are also seeing a shift in investor behaviour, particularly from US allocators seeking exposure to European and UK private equity. For these investors, Guernsey offers familiarity, credibility and efficiency, a platform that supports cross-border investment without unnecessary complexity.

Venture capital has followed a similar path. More VC managers are choosing Guernsey not simply for speed to market, but for access to experienced directors who understand both the asset class and the sectors in which these funds operate. As strategies become more specialised, governance can no longer be generic. Expertise matters.

For Arolla Partners, 2025 has been a year of growth and momentum. Over the past 12 months, we have welcomed four new consultants – Rebecca Booth, Lisa Barnett, Hannah Hayward and Simon Sharrott to the business and launched a new fiduciary consultancy service, further broadening our offering. We have also reached a significant financial milestone, reflecting both the strength of our client relationships and the continued growth of Arolla.  

Looking ahead, I expect capital raising to remain selective but decisive. Established managers returning to market will continue to raise efficiently, and we are likely to see more “one-and-done” strategies where speed, conviction and execution are prioritised over scale. In that context, governance, jurisdiction and judgement will remain central, not as supporting considerations, but as core drivers of success.