JERSEY Law and Practice Contributed by: Paul Burton and David Allen, Maples Group
1. Transaction Activity 1.1 Private Equity Transactions and M&A Deals in General Following this cycle’s all-time peak, reached in 2021, the global M&A market turned in its second-weakest year in exactly a decade in 2023. However, more nor - mal deal activity levels returned in 2024, and there has been a good deal of M&A activity in 2025, especially in the infrastructure space. As a well-regulated international finance centre, Jer - sey continues to deliver innovative and high-quality downstream acquisition and investment fund-struc - turing solutions to global private equity and sector- focused institutional sponsors. In line with global market conditions, strong top-spon - sor appetite remains for renewable energy/resources and infrastructure opportunities, which have greater potential for value creation over the life of an asset. Such transactions may involve more upfront cost and complexity. One key attraction for maintaining a stable of infrastructure assets is the “best in class” investor-return prospects that they have the potential to achieve. The acute focus on ESG seen across all sectors means that renewable energy and resources asset targets are in focus. The mid-market landscape continues to be the most competitive, and possibly the most overcrowded, segment of the global private equity market in recent years. This is compounded by the need for many sponsors to deploy capital and access alternative credit solutions to complete leverage buyout transac - tions, which has added to the considerable pressure and focus on increasing investor returns. As a result, take-privates, pre-emptive bids and conventional auc - tion processes persist. This chapter provides an overview of the key trends and features of private equity transactions in Jersey and those involving Jersey-registered vehicles – ie, an acquisition (or disposal) where the buyer (or seller) is a special purpose vehicle owned and controlled by a private equity fund.
1.2 Market Activity and Impact of Macro- Economic Factors Domestic market activity in Jersey is dominated by private equity involvement in financial services-sector businesses, such as professional corporate services and trust company businesses, which are the target of primary, secondary or tertiary private equity invest - ment. Furthermore, 2025 has also seen reasonable levels of M&A trade sale locally. Certain transactions have triggered further consolidation in the trust and corporate services industry. Global banking busi - nesses with a Jersey footprint also provide non-core business carve-out opportunities for private equity sponsors in the local financial services sector. Separately, sustained use of Jersey vehicles by lead - ing private equity sponsors investing in larger-scale primary cross-border deals across 2024 and 2025 saw a spread of activity across the following asset sub-classes: • professional services, advisory and consultancy; • infrastructure; • wealth management-related financial services; • enterprise software and business-to-business services; and • renewable energy. General equity market volatility, some of which has been tariff-driven in H1, 2025, has meant that private equity activity in the Jersey market, and in cross-bor - der transactions where Jersey vehicles are used, has increasingly been focused on legal, tax and financial due diligence, closer examination of target growth strategies and a realignment of expectations on valu - ation. Higher costs of borrowing in the UK and European market have led mid-market, and some top, spon - sors to access leverage via alternate credit providers. This has positively impacted the credit markets by enabling borrowers to fund acquisitions on more flex - ible terms, given that most alternate financiers are not constrained by the kind of regulatory capital and cov - enant criteria that constrain mainstream bank lenders.
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