Introduction
Bedell Cristin partners recently hosted three roundtable events, bringing together key stakeholders whose work focuses on Middle Eastern, African and Indian clients and investments, from the City of London. This article explores the trends and themes that emerged during those discussions, and specifically the use of BVI, Cayman, Guernsey and Jersey law structures when acting for public and private entities, including family enterprises, corporates, funds and other types of institutions.
The events highlighted three key trends that are recurring time and time again in our work advising Middle Eastern, African and Indian clients on investments and private wealth: the shift from family business to family institution; a move towards international investment opportunities; and an increasing focus on resilience in an unpredictable world.
It would be a mistake to think that all Middle Eastern, African and Indian investors are motivated by the same drivers, or that those drivers are radically different from those motivating investors globally – but what emerges from the discussions and our work with clients across the regions is a sense of families adapting to and planning for the maturing of family wealth, investors seeking opportunities globally, not regionally; and investment strategies that befit a complex and shifting geo-political environment.
From family business to family institution
Many of the Middle East, Africa and India's most successful businesses were built by exceptional, talented entrepreneurs who drove growth, made key decisions and held critical relationships. Eventually, every one of those founders faces the same question: what happens next?
Increasingly, investors are asking that question too – and are seeking clarity around governance, ownership, decision-making and succession, as well as details on financial performance.
As a result, families are placing greater emphasis on formal governance through family constitutions, family councils, independent boards, professional investment advisers and shareholder arrangements, all whilst separating personal and business assets.
This process is not only about succession planning; it is also about reassuring investment partners and other counterparties – deals have stalled where investors could not get comfortable with what happens if the founder retires, dies or family ownership fragments.
As families institutionalise wealth, they start looking for institutional-quality architectures. That is one reason we increasingly see BVI, Cayman Islands, Guernsey and Jersey holding structures, trusts and private funds being used alongside local operating businesses, under single or multi-family office structures, adding a layer of regulatory certainty and professional services expertise that reassures investors.
At the same time, a new generation of global family leaders is bringing international education and professional experience, institutional thinking and a willingness to professionalise governance while preserving the entrepreneurial culture that made their businesses successful. That integration is critical.
International investment horizons
The second trend is the transition from regional entrepreneur to global steward.
Historically, many Middle Eastern, African and Indian investors focused on local or regional opportunities – now, we see investors deploying wealth well beyond their own borders and regions, and enthusiastically pursuing more bespoke investment strategies than conventional securities and real estate investments.
This shift sees a move towards established fund and private equity activity, with private fund regimes used for making direct investments, co-investments and strategic acquisitions, with greater control over investment terms (including timing and exits), more demands in terms of reporting and more focus on robust governance.
Saudi Arabia in particular is moving from a relationship-led market towards a more rules-based and transparent investment environment, with recent reforms having reduced some of the historic barriers to foreign investment, particularly in areas such as real estate and direct market access.
At the same time, sovereign investors – a key feature in the Middle Eastern market - are not only seeking financial returns; they are also pursuing strategic objectives such as economic diversification, job creation, technology transfer and geopolitical influence; and seeking global opportunities ranging from AI and data centres, to infrastructure and strategic real assets.
The use of offshore centres such as BVI, Cayman Islands, Guernsey and Jersey is bringing with it access to more formal governance structures, investment committees, independent directors and in-house investment expertise – all of which ties in with the use of Islamic Finance arrangements structured through offshore vehicles, particularly relevant in the Middle East and Africa.
A focus on resilience
There is no escaping the international uncertainty in global investment activity, the impact of higher interest rates and inflation, geopolitical competition, and the disruption (and opportunities) posed by rapid developments in AI technology.
Traditional portfolio construction is being challenged because bonds are not always providing the diversification that investors have grown accustomed to expecting. Investors are therefore considering alternatives such as market-neutral strategies, hedge funds, private markets and other sources of return that are less dependent on broad market direction.
This trend is not just about behaviour in the private or public markets - central banks are also reassessing reserve holdings and dollar exposure, including greater interest in gold and other reserve assets.
Amidst this uncertainty and change, investors are also seeing opportunities in AI – and the requisite infrastructure supplying power, data centres and chips – seeing opportunities broadening beyond a purely US-centric story.
Re-balancing these portfolios creates a growing need for structures that support refinancing, third-party debt, Sharia-compliant arrangements and co-investment by other families or investors.
At this point, structuring becomes a powerful enabler - well-designed offshore holding structures, investment vehicles, family office platforms and fund structures can bring together investors within a clear governance framework, and the ultimate backdrop of well-established dispute resolution mechanisms.
Conclusion
The three trends amongst Middle Eastern, African and Indian families – institutionalisation, an international horizon and a focus on resilience – all make offshore structures more compelling.
BVI, Cayman Islands, Guernsey and Jersey structures provide the regulatory certainty, investor confidence and professional services infrastructure that supports the drive to professionalise, seek global opportunities, and to take full advantage of them.
In our experience, Jersey and Guernsey remain leading jurisdictions for family office, private wealth and holding company structures, Cayman Islands structures are often used for global families seeking access to US capital and opportunities, and BVI companies are widely used as global investment vehicles, particularly in Asia.
What emerges from our work is a clear theme – families, investors and asset managers successfully combining entrepreneurship with governance, regional perspectives with international opportunities, and responding to uncertainty with strategies based on resilience.
The Middle East, Africa and India roundtable events were held as part of the launch of our newly established ADGM office, headed up by Faizal Bhana, Head of Middle East, Africa and India at Bedell Cristin. Our thanks to our valued colleagues at BlackRock, Standard Chartered and Buzzacott for hosting the roundtables.
