The Channel Islands & Isle of Man

Introduction The role of Family Office executives is evolving. Today, the remit extends far beyond traditional wealth preservation. As structures grow more sophisticated and expectations rise, executives must navigate a fast-moving investment landscape, often without the resources of institutional peers. At Farrer & Co, we work closely with Single and Multi-Family Offices to support their direct investment and acquisition activities and investment structuring, as well as advising on governance and enabling smart, strategic decisions across asset classes. This paper shares key insights from our recent webinar, which forms part of our Family Office Insights series, focusing on investment structuring for Family Offices, co-investment strategies and the regulatory landscape for 2025 and beyond. A new era for Family Offices Professionalisation and governance Family Offices are no longer informal operations. They are becoming increasingly sophisticated in structure and internal organisation, often with dedicated functions including investment teams, legal, finance, HR, and compliance. This trend is being driven by: the ever-increasing complexity of the range of investments being managed by Family Offices; the need for robust governance across generations; attaining and maximising returns on family capital; and a shift in perception amongst sell-side investment originators: Family Offices are now serious players in the private capital market. Key insight: As Family Offices professionalise, their executives must adapt to new investment, governance and operational demands while balancing the family's values. The need for operational rigour, flexibility, and strategic oversight has never been greater, especially as the sector becomes an increasingly important source of investment capital. Direct and co-investment: trends in 2025 Sophistication and access The investment landscape for Family Offices continues to expand. Investment strategies have long been focused on public markets and characterised by passive investment and outsourcing investment decisions to private banks and third-party wealth managers. Many Family Offices are now operating via in-house investment functions and directly allocating capital to private markets, including: Direct investment: taking control positions or significant minority stakes in trading companies. In-house investment funds: harnessing the benefits of fund-type structures used by institutional asset management. Co-investment: teaming up with other Family Offices or private equity sponsors to access larger opportunities. Key insight: Family Offices are diversifying the means by which they invest, moving away from passive, heavily intermediated investment in public markets, and embracing sophisticated investment techniques. Structuring for control, scale and succession Why more Family Offices are setting up their own funds There is a clear trend among sophisticated Family Offices to formalise their investment activity by creating bespoke fund structures. Potential benefits include: centralised oversight of diverse pools of assets; economies of scale (for example, reduced professional advisory and administration costs and consolidated reporting); flexibility in providing incentives for investment professionals within the Family Office (e.g., carried interest, growth shares); and more defined structures in investor rights terms provide support for intergenerational planning, governance and wealth transfer. Key considerations for fund structuring: Choice of Jurisdiction: Guernsey, Jersey, Cayman and Luxembourg remain popular fund domiciles, but UK-based Family Offices are increasingly exploring onshore UK fund vehicles. Regulatory approach: the choice between advisory vs discretionary models affecting compliance, licensing and oversight. Commercial terms: Family Office fund structures need to be custom-built taking into account the family’s aims and goals and should reflect investment objectives, risk tolerance, and liquidity needs. Spotlight on private credit and real estate Private credit With traditional lenders pulling back, Family Offices are stepping into the gap. From direct loans to distressed debt opportunities, Private Credit is attracting far greater capital allocation from Family Offices due to: Predictable cash flows; Attractive coupons; and Strategic control over terms and repayment structures. Real Estate UK Real Estate continues to be a core asset class for Family Offices, but one that’s evolving: A challenging real estate environment makes an asset with a steady and long-term yield particularly attractive. Property portfolios are seeing increased diversification e.g., student accommodation, retail parks and leisure assets. Highly valuable branded hotels and hospitality assets remain in favour. Legal watchpoints for property and credit investments: Consider JV and asset management contracts carefully. Understand transparency requirements (Land Registry, PSC regime, Overseas Entities Register). Factor in planning reforms and tax implications when evaluating land or credit deals. Key takeaway: asset classes offering a long-term, steady yield are very attractive. Whatever the asset, ensure that you understand the commercial arrangements. The nature of private credit and real estate deals can be incredibly bespoke. Ensure the commercials are viable, and that they are well documented. The regulatory environment Executives should be aware of the National Security and Investment Act (NSIA) — a broad regime giving the UK Government the power to review transactions involving 17 “sensitive sectors”. Mandatory notifications can apply even to UK-based investors with no foreign links. Common triggers: investment into sectors such as advanced materials, quantum computing, AI, infrastructure. Risk: failure to notify under NSIA can result in the transaction being void. Key takeaway: even if your proposed transaction doesn’t appear to relate to national security, it may still trigger a filing. If your Family Office is exploring investments in risk sectors, e.g., tech or innovation-led investments, seek early legal advice. Final thoughts Family Offices are maturing into some of the most agile and influential investors in the market. But with that influence comes complexity. Whether you’re structuring a fund, evaluating a co-investment or stepping into private credit, the right legal framework is essential. Our Family Businesses team at Farrer & Co supports executives across all aspects of legal and regulatory structuring, working alongside your existing advisers to help you make smart, long-term decisions.

The firm will expand the geographical business reach of both firms, into Switzerland and parts of Europe, the UK, Middle East, India and Southeast Asia.

In a landmark move aimed at bridging traditional real estate with emerging opportunities in infrastructure, Charles Group, one of India’s fastest-growing diversified conglomerates, signed a $1 billion strategic agreement with the U.S.-based Patel Family Office during the Global Wealth Conference 2025, hosted by the Sovereign Wealth Fund Institute (SWFI) at London’s historic Mansion House. The Memorandum of Understanding (MoU) was formally exchanged in the Egyptian Hall, witnessed by more than 40 global asset allocators, including over 20 sovereign wealth funds (SWFs) representing $5 trillion in capital. The signing took place in the presence of Lord Dominic Johnson of Lainston CBE, Former Minister of Investment, and Rt. Sir Brandon Lewis CBE, Former UK Cabinet Minister and Board Member, VEON. The deal marks the first transaction announced at this year’s GWC, a milestone that organizers say signals how sovereign allocators and private capital are aligning around digitally-native, real-world asset (RWA) strategies. Under the partnership, the firms will co-develop a digital investment platform focused on real estate and infrastructure assets across UK, GCC, India and the SAARC region, with long-term plans to scale globally and explore strategic business investment opportunities in this space. The Technology infrastructure will be provided by a U.S. based company. “This collaboration opens a new frontier for Indian-origin institutions to lead in the digital revolution,” said Jose Charles Martin, Chairman and Managing Director of Charles Group. “We’re committed to making real-world assets more accessible, transparent, and scalable.” “This partnership exemplifies how family capital can drive innovation that’s both inclusive and institutional-grade,” added Dipika Patel, Chairwoman of Patel Family Office. “Real estate is one of the most powerful tools of nation-building,” said Kim Diamond. The agreement outlines a multi-pronged framework including: A pipeline of real estate and hospitality projects in India and other emerging markets; The development of compliant, cross-border investment opportunities. Regulatory coordination across the UK, GCC, and SAARC jurisdictions; Tailored access channels for SWFs, family offices, and qualified institutional buyers. The MoU was commemorated in a group photograph featuring Lord Dominic Johnson of Lainston CBE, Rt. Sir Brandon Lewis CBE, Dipika Patel, Jose Charles Martin, Bhupesh Nagarajan, and Kim Diamond. “This is the kind of initiative we envisioned when we called for London to be the home of trusted digital innovation,” said Sir Brandon Lewis. “A bold step in the right direction.” “The future of capital is being written here - on-purpose, and on a global stage,” Lord Johnson added. For Charles Group, the deal marks its formal global debut, signaling a new phase in the firm’s evolution from industrial powerhouse to capital allocator. For the Patel Family Office, it affirms their growing role in shaping infrastructure and real estate investment frameworks.

The formation of Valterra, unveiled earlier this year as part of Anglo's broader portfolio review, has been officially framed as an effort to unlock long-term value, streamline operational focus, and create a platform better positioned to weather both regulatory and market volatility.