Guernsey’s improved PIF regime is good news for venture capital funds

In an industry that prizes speed, simplicity and flexibility, venture capital managers increasingly need robust fund structures that work with them – not against them.

Guernsey’s recent overhaul of its Private Investment Fund (PIF) regime offers exactly that – a way to set up credible, regulated fund vehicles with minimal friction, faster timelines, and greater structural choice.

What makes this especially compelling for venture capital (VC) managers is how precisely the regime changes align with the real-world pressures of managing a modern venture fund.

In a move that reflects an evolving understanding of fund manager behaviour and investor dynamics, Guernsey’s updated PIF framework simplifies the previous three-route regime.

What has changed in Guernsey's Private Investment Fund regime?

Guernsey's updated framework introduces a streamlined two-track model:

• Qualifying PIFs (QPIFs): for managers targeting experienced or professional investors, such as high net worth individuals (HNWIs), family offices, or institutions 

• Family PIFs: tailored for private capital pools between connected parties with a close relationship

QPIFs will suit managers targeting experienced or professional investors who are able to certify qualified status and an understanding of risk (such as HNWIs, institutions and sophisticated family offices). Family PIFs will continue to suit private wealth structures where there is a pooling of assets.

Other key changes to the PIF regime include the following:

• There is no requirement for PIFs to be managed by a Guernsey-licensed manager (although a locally licensed administrator is required)

• The categories of potential investors who can invest in a QPIF have been expanded and aligned with relevant definitions in legislation applicable in the major onshore funds jurisdictions (and includes, for example, UK Professional Investors, EU Professional Investors and US Accredited Investors)

• There is no limit on the number of investors able to hold an economic interest in a QPIF

• There is no limit on the number of offers that may be made in respect of a QPIF (provided that offers must only be made to qualified investors and may not be made to the "general public")

• PIFs are not required to appoint an auditor (although many investors may still expect that audited financials will be made available)

• PIFs are not required to produce a prospectus

These changes aren't just regulatory housekeeping – they are designed to reflect and facilitate how capital is raised and deployed today. In our view, they have made an already very useful fund structuring product even more useful to a VC fund manager. The regime changes also directly map how VC funds operate and how they’re evolving.

How is this good for venture capital funds?

• No unnecessary infrastructure: not every fund needs a Guernsey-based management company. For lean teams and first-time funds, the ability to forgo a local manager without compromising investor safeguards could be a major efficiency gain

• The strategic advantage of speed: all PIF types can be registered with the Guernsey regulator within one business day. That responsiveness enables tactical closes, parallel fundraising, and just-in-time structuring aligned with deal flow rather than bureaucratic timelines

• Start simple and scale: PIFs will be particularly suitable for early-stage funds with ambitions to grow. Whether you’re managing less than US$100 million or piloting a thematic strategy, the PIF allows you to operate at institutional standards without overbuilding too early

For managers seeking speed to market and structural flexibility combined with a robust and reliable regulatory regime, Guernsey’s PIF isn’t just a viable option – it may now be the strategic default.

The case for Guernsey

Guernsey is widely accepted by limited partners (LPs), especially those in the UK, Europe, and the Middle East. With no blacklist issues, strong legal infrastructure, and tax neutrality, it gives investors confidence while keeping structures straightforward.

While the PIF regime isn’t for every fund. It’s been designed to serve managers who:

• raise capital from known or self-certified LPs

• operate from a single or dual-office setup (whether or not outside Guernsey)

• prioritise fast, flexible structuring

• value legal certainty but want to minimise operational drag

As regulators and jurisdictions compete for relevance, the focus is moving away from one-size-fits-all rules and toward use-case specific structuring. Guernsey’s approach is notably pragmatic. It simplifies without diluting standards, it adapts without compromising investor protection and it prioritises function over form – something the venture community deeply understands.

The best structures are the ones that don’t get in the way

By removing unnecessary requirements, aligning timelines with fundraising realities and preserving trust among global LPs, the regime lets managers get back to what they do best - building great portfolios, cultivating LP relationships, and deploying capital with conviction.

If you’re advising or launching a venture fund and haven’t considered Guernsey recently, it may be time to – not just because the rules have changed, but because they have caught up with how you do business.

How Ogier can help

Ogier's Guernsey funds lawyers have the knowledge and expertise to advise on the formation and operation of all kinds of fund vehicles and strategies. Our deep knowledge of the Guernsey market ensures we are in the best possible position to advise on transactions right across the lifecycle of funds. If you are considering forming and managing a fund in Guernsey, reach out to any of the authors listed below or your usual Ogier contact.

About Ogier

Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.

Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice