As a dynamic European jurisdiction, Gibraltar has established itself as a leading hub for alternative investment funds. Its reputation as a business-friendly destination, combined with flexible and cost-effective fund structures, makes Gibraltar especially attractive for start-ups, boutique managers, and niche strategies.
The Advantages of Gibraltar for Hedge Funds
Whether you are relocating an existing hedge fund or setting up a new structure, we provide the expertise, infrastructure, and personal support to ensure your fund launches smoothly and operates effectively.
With a strong background in asset management and over two decades of experience in Gibraltar’s financial services industry, we understand the complexities of hedge funds and the challenges they face.
Historically, hedge funds have gravitated towards the Cayman Islands, but today, jurisdictions like Gibraltar offer managers a comparable, Europe-based alternative with significant advantages;
Gibraltar is the only jurisdiction that enjoys passporting rights into the UK under UK-equivalent AIFM legislation. Hedge funds based in Gibraltar can freely market to UK professional and sophisticated investors, including high-net-worth individuals.
Hedge funds not targeting the UK can opt out of AIFM legislation, regardless of size, avoiding unnecessary regulatory burdens. They only need to
comply with the rules of their chosen fund vehicle.
Funds established in Gibraltar benefit from a highly efficient tax regime.
Perfect for managers and investors across Europe.
Hedge Fund Structures in Gibraltar
Private Funds
A cost-efficient vehicle for managers aiming to build a track record with a small pool of investors or their own capital. Private Funds are not regulated by the Gibraltar Financial Services Commission (GFSC), they have minimal requirements, and can be established quickly.
Experienced Investor Funds (EIFs)
Ideal for more established managers with larger seed capital. EIFs are regulated by the GFSC but do not require pre-approval before launch. They allow maximum flexibility in investment strategy, liquidity, and borrowing, making them a natural fit for hedge funds.
Self-Managed Funds
Both Private Funds and EIFs can be self-managed, giving smaller managers independence. A manager can either act directly as the Investment Director or establish a Gibraltar-based Corporate Director for the fund—an approach widely used across the jurisdiction.
VFS has serviced various hedge funds domiciled in the Cayman Islands and is confident that Gibraltar represents a serious cost-effective alternative in a convenient time zone for European Hedge Fund Managers
Private Equity Funds
Gibraltar is not only attractive for hedge funds, but also for private equity funds and other similar alternative strategies. The PCC and Limited Partnership structures are particularly well-suited for these types of funds;
- Protected Cell Companies (PCCs) – Enable managers to run multiple strategies under one fund structure, with each cell legally ring-fenced from the others. Private equity managers can segregate multiple projects/deals across the different cells in a single fund with no cross liability for investors.
- Protected Cell Limited Partnerships (PCLPs) – Allow for the creation of multiple segregated cells within a single Limited Partnership framework. It combines the tax transparency of LPs with the operational efficiency of having protected cells within a single legal structure.
These structures provide investor protection, tax transparency, flexibility, and efficiency, making Gibraltar a very competitive jurisdiction for private equity funds. VFS has serviced a number of private equity funds, most of which have been set up as Limited Partnerships. We are familiar with the nuances of these structures as well as those of protected cells and we have additional ancillary services to complement these set-ups, so that all operations can be done under the same roof. Private equity funds can also benefit from our strong links with the regulator and local auditors to expedite the process of arranging sound valuation methodologies for their private equity ventures.
Why Choose VFS to service your fund in Gibraltar:
- Established Expertise – Servicing hedge funds and private equity funds since 2006.
- Investment Knowledge – Managing assets for clients since 1998.
- Full Administration Support – From NAV calculations and transfer agency to compliance and governance.
- Personalised Service – Tailored to the needs of all managers, from start-ups to established firms.
- Proven Track Record – Experience supporting both new launches and relocations.
