Why Guernsey for defence finance?
Defence finance is becoming an increasingly important part of global capital markets as governments, investors and businesses seek new ways to fund defence capability, cyber security, critical infrastructure and dual-use technologies.
Guernsey's internationally recognised investment fund, fiduciary and insurance sectors help connect capital with opportunities in defence, security and resilience. Supported by a trusted regulatory framework, specialist expertise and a strong culture of governance, Guernsey provides the structures and services needed to support responsible defence-related investment.
Political and economic stability
Robust regulatory environment
Committed to international standards
Innovative industry
Defence and resilience finance refers to the financial structures, investment vehicles, insurance and professional services that support defence, security and resilience-related activity.
This can include:
- Defence-focused investment funds
- Defence technology and innovation funding
- Cyber security investment
- Private wealth and family capital supporting relevant businesses and technologies
- Captive insurance, reinsurance and specialist risk transfer
- Conflict, catastrophe and humanitarian risk financing
- Dual-use technologies with civilian and defence applications
- Strategic infrastructure investment
- Insurance and risk solutions
- Corporate and fiduciary services supporting defence-related structures
Governments across Europe and NATO-aligned markets are increasing defence and resilience spending in response to a changing geopolitical environment. At the same time, investment is accelerating into technologies such as cyber security, artificial intelligence, communications infrastructure and advanced manufacturing.
These developments are creating opportunities for institutional and private investors, fund managers and family offices, while increasing demand for specialist insurance, reinsurance and risk-management solutions.
Guernsey is a specialist international finance centre with established strengths across investment funds, private wealth and fiduciary services, insurance and specialist structuring. These capabilities enable Guernsey to support different parts of the defence, security and resilience financing ecosystem, from mobilising investment capital to managing risk and supporting family and private capital.
Guernsey’s regulator, The Guernsey Financial Services Commission, has confirmed that "Guernsey's regulatory framework is designed to be robust, proportionate and internationally credible. Over the past year the Commission has authorised three defence funds which plan to contribute to rebuilding NATO capabilities through their investment in defence tech. In an uncertain world Guernsey is pleased to welcome proposals for high quality and responsible defence investment platforms which help Europe and the NATO alliance enhance defences against emerging threats."
Guernsey offers:
1. Specialist investment fund expertise
Guernsey's mature investment funds sector supports private equity, venture capital, infrastructure and specialist investment strategies, providing structures through which private capital can access defence, security, resilience and dual-use opportunities.
Guernsey is has developed a track record in defence investment. In 2026, several defence-focused funds have chosen to domicile in the island, including Lakestar’s $300 million Resilience I Fund and Spitfire Strategic Capital Fund I, building on the launch of Hedosophia’s Defence Technologies fund in 2025. Read more about Guernsey’s growing defence investment specialism
2. Private wealth, family office and fiduciary expertise
Guernsey's established private wealth and fiduciary sector can support family offices, entrepreneurs and private investors seeking to structure and deploy capital into specialist and long-term investment opportunities, such as defence. Its experience in trusts, companies and other ownership structures also provides expertise relevant to families and individuals whose businesses or investment interests span multiple jurisdictions.
3. Insurance, reinsurance and innovative risk solutions
As a leading specialist insurance centre, Guernsey can also contribute to the risk-financing side of the defence and resilience agenda. Its expertise in captives, insurance-linked structures and specialist risk solutions provides a platform for addressing complex and emerging risks, including those associated with conflict, infrastructure and resilience.
This expertise is already being applied in practice. A €110 million guarantee scheme launched by Aon and the European Bank for Reconstruction and Development uses a Guernsey-based structure to provide reinsurance capacity for war-related risks in Ukraine. Read more about the Ukraine war risk insurance facility.
4. Governance and specialist structuring
Strong governance, transparency and appropriate oversight are particularly important where defence and security-related activities are concerned. Guernsey combines an established regulatory framework with experienced legal, fiduciary, administration, risk and governance professionals capable of supporting sophisticated international structures.
In 2026, the Guernsey Financial Services Commission joined defence, investment and industry leaders in Guernsey to explore how private capital and international finance centres can support global security and resilience. Read more about Guernsey’s role in supporting global security investment.
Guernsey has already seen a number of defence-focused and dual-use investment structures established in the jurisdiction.
Examples include investment funds focused on:
- Defence technologies
- Cyber security
- Resilience and security investment
- NATO-aligned innovation opportunities
- Dual-use technologies with civilian and defence applications
These capabilities are reflected in funds established in Guernsey, including Hedosophia’s Defence Technologies fund and Lakestar’s $300 million Resilience I Fund, which focuses on dual-use and defence technology companies across European and NATO-allied markets. Read more about Guernsey’s growing defence investment specialism.
Responsible governance is a critical consideration in defence finance. Investment managers, investors and service providers must navigate issues such as sanctions compliance, due diligence, risk management and transparency.
Guernsey's financial services industry has extensive experience supporting regulated international investment structures, helping provide the governance and oversight expected by institutional investors and global markets.
Investment is increasingly flowing into areas such as:
- Cyber security
- Artificial intelligence
- Advanced manufacturing
- Communications technologies
- Defence technology
- Aerospace innovation
- Strategic infrastructure
- Supply chain resilience
- National security technologies
Many of these sectors have both civilian and defence applications, creating opportunities for long-term investment and innovation.
Guernsey has a long-established specialist insurance sector, with expertise in captives, reinsurance and innovative risk-transfer structures. This capability can support the complex and emerging risks associated with defence, security, conflict and resilience.
Guernsey structures are already being used to address some of these challenges. A €110 million guarantee scheme launched by Aon and the European Bank for Reconstruction and Development uses a Guernsey-based structure to provide reinsurance capacity for war-related risks in Ukraine, helping private-sector insurers provide cover and supporting wider economic resilience.
Guernsey's expertise in specialist insurance and risk financing also extends beyond defence. Guernsey structures have been used in connection with disaster-relief financing for the International Federation of Red Cross and Red Crescent Societies and catastrophe-bond protection against wildfire losses in California, demonstrating how innovative risk-financing structures can respond to a wider range of resilience challenges.
Guernsey combines specialist financial services expertise with international connectivity, political stability and a strong reputation for trusted governance.
Guernsey's strength lies in helping fund managers, investors, insurers and professional advisers establish and administer sophisticated structures that support complex international investment and risk management strategies.
For organisations involved in defence, security and resilience-related investment, access to experienced service providers, recognised regulatory standards and flexible structuring solutions can be critical to success.
Why Guernsey for private wealth?
Explore Guernsey’s leading private wealth offering, with focus on Trusts, Foundations, Private Investment Funds (PIFs), Philanthropy and Family Office. Featuring comprehensive insights to the products that Guernsey’s industry specialises in, as well as case studies on the unique benefits to clients, this piece will offer the reader an excellent guide to Guernsey’s private wealth offering.
Why do people like working with Guernsey practitioners?
“Guernsey gives me good security, good governance, the political situation is stable – a premium these days.”
“Guernsey’s willingness to implement changes to the law sees it moving ahead of competing jurisdictions in offering technological solutions and electronic commerce tools to financial services businesses. The ability to amend the law at short notice, and thereby react in a rapidly evolving area of law, provides Guernsey with a platform to feal with future advances in respect of electronic transactions."
“Guernsey was our jurisdiction of choice due to the high level of regulation and standards that the corporate service providers re subject to in the island, this leaves the island with an excellent reputation of professional standards and ease of doing business. This gave us comfort that our intergenerational planning and trust structuring decision to be in Guernsey was the right choice for us.”
"The research commissioned by Guernsey Finance revealed there are approximately 5,000 family offices operating worldwide, mostly in Europe and North America – a number that has roughly doubled in the last decade. As the family office becomes ever more popular as a vehicle for the servicing of private wealth, enabling global capital flows into both private and public markets, the issue of good governance – and how to achieve it – becomes an issue of great urgency. Guernsey, as a jurisdiction at the forefront of family office and the serving of private wealth, is better placed than many to advise further on this issue. This report sets out how ultra-high net-worth (UHNW) families can improve governance – and why it is unquestionably important to do so.”
“My South African client set up a Guernsey trust. The trusted advisor network and cross border expertise and depth of experience on the island made this an easy decision.”
“Guernsey is interpersonal, they work for not who they are, but who the client is and exceed expectations.”
“Guernsey is about quality. We direct our clients there for trustee services because it’s not flash – it’s filled with intelligent, measured and professional individuals who are not cavalier with regulations, tax responsibilities and the client’s money. For families wanting support in the sensible and responsible stewardship of private capital, this is ideal.”
“Guernsey has been very helpful in both finance and legal assistance. I would highly recommend it if you delight in dealing with serious professionals.”
“The Guernsey offering has enabled us to diversify our booking centres without compromising the quality of the service and regulation for our clients. In fact, we have found the quality to be superior to some of the sister Channel Islands simply because the smaller scale provides a more dedicated and hence higher level of customer service. There is nothing we can achieve in any of our other booking centres that we cannot in Guernsey.”
Learn more about finance in Guernsey
Why Guernsey for Banking
Just in case vs just in time: private capital’s role in building global resilience
Transitioning wealth in changing world: why communication matters more than ever
Business directory
Aurum Private Limited
BOW Trustees
Hanseatic Asset Management LBG
Imperium Trust Company Limited
Key contacts
